(London / Great Britain) – Global investments in renewable energy totaled $2022 billion (€226 billion) in the first half of 222. This means – despite all the problems in the supply chains caused by Corona and the Russian attack on Ukraine – an increase of eleven percent compared to the same period last year. “The increase in investments reflects the increasing demand for clean energy to address the current global energy and climate crisis,” said analysts at BloombergNEF (BNEF) in their now published “Renewable Energy Investment Tracker 2H 2022”.
Record investments in photovoltaics
Investment in new solar projects worldwide rose to a record $120 billion (118 billion euros), an increase of 33 percent compared to the first six months of last year. Financing for wind power projects increased by 2021 percent to $16 billion (84 billion euros) compared to the first half of 82. 
“Both sectors have recently been impacted by rising costs of key materials such as steel and polysilicon, as well as supply chain disruptions and rising financing costs,” the consultancy said. The current figures are therefore “partly due to the very high energy prices” that can currently be observed in many markets around the world. The number of projects financed or even the performance to be installed cannot be directly derived from the sums mentioned.
China continues to lead in PV investment
The largest market for renewable energy is China. Investments in industrial-scale photovoltaic projects amounted to $2022 billion worldwide in the first half of 66 (plus 27 percent). China invested a total of $41 billion (plus 173 percent) in the PV sector. The most important deal in the first half of the year was the $1.300 billion financing by Huanggang Dabieshan Power Generation Co Ltd and Macheng Energy Investment Development Co Ltd for the construction of a 1,1-megawatt photovoltaic plant in Hubei province, according to BNEF.
China's investments in wind power projects amounted to 58 billion dollars (plus 107 percent). Worldwide it was 124 billion dollars (122 billion euros). The largest single project in the reporting period was the $1.000 billion financing of the 2,1-megawatt Yangjiang Shapa Qingzhou offshore wind farm by state-owned project developer Three Gorges Corporation.
China's currently weak economy has been boosted since the beginning of the year, particularly by green infrastructure projects, says Nannan Kou, head of China analysis at BNEF. “The trend of investment growth follows China's strategy to build new renewable generation capacity to replace the existing coal fleet.” China is “on track to achieve its target of 1.200 gigawatts of wind and solar capacity by 2030.”
Offshore wind grew by 52 percent
Investments in the offshore wind power sector rose by 52 percent to $32 billion compared to the previous year. Chelsea Jean-Michel, offshore wind power analyst at BNEF, is convinced that installed capacity will increase tenfold from 53 gigawatts in 2021 to 504 gigawatts in 2035. “The investments in 2022 will flow into projects that will come online in the next few years. Offshore wind projects enable companies and governments to achieve their decarbonization goals at scale.”
Decline in equity issues
The “Renewable Energy Investment Tracker” covers both project investments and corporate fundraising. In addition to the boom in project investments, a new record was also achieved in venture capital investments in renewable energies and energy storage in the first half of the year. According to the information, there was an increase of 63 percent compared to the previous year to 9,6 billion dollars (9,4 billion euros).
In contrast, BNEF recorded a 65 percent decline in share issues by companies in the renewable energy sector. Revenues amounted to 10,5 billion dollars (10,34 billion euros). In the second quarter of 2022, revenue from emissions was reported to be $3,9 billion, the lowest value since the second quarter of 2020.
The Chinese companies Tongwei Co Ltd were again among the largest issuers. (power generators, $1,9 billion), Jinko Solar (photovoltaics, $1,6 billion) and Sany Heavy Energy Co Ltd. (Wind turbines, $837 million).
Demand for renewables is increasing despite supply chain problems
“Despite headwinds from ongoing cost inflation and supply chain challenges, demand for clean energy sources has never been higher,” said Albert Cheung, head of analytics at BloombergNEF. He expects that the global energy crisis will further accelerate the transition to clean energy: “Policymakers are increasingly recognizing that renewable energy is key to achieving energy security goals and reducing dependence on volatile energy raw materials.”
BNEF: “Renewable Energy Investment Tracker 2H 2022”. A free short version is available here Link.
Photos
Investments in wind and PV are rising to new records worldwide. © International Energy Agency
Class schedule
When it comes to investments, the Asian economic area clearly beats America and EMEA (Europe, Middle East, Africa). © BloombergNEF
