04 Aug Renewable energy investment reaches HY record, BloombergNEF finds
Global investment in renewable energy soared to a record half-year figure of US$226 billion in the first six months of 2022, according to BloombergNEF’s latest report on the sector.
BNEF’s Renewable Energy Investment Tracker 2H 2022 report, which covers both project investments and corporate fundraising, also revealed that investment in new solar projects rose to a record-breaking $120 billion in the first half, up 33% from the same period in 2021. Total wind power project financing was up by 16% to $84 billion.
Investors in renewables were seemingly undeterred by cost inflation and supply chain challenges in the period, with demand being driven by the need for clean energy technologies to combat climate change.
“Policy makers are increasingly recognising that renewable energy is the key to unlocking energy security goals and reducing dependence on volatile energy commodities,” said Albert Cheung, head of analysis at BNEF.
“Despite the headwinds presented by ongoing cost inflation and supply chain challenges, demand for clean energy sources has never been higher, and we expect that the global energy crisis will continue to act as an accelerant for the clean energy transition.”
As expected, China led the way and posted huge investment growth in both wind and solar project finance, with the country’s large-scale solar investments up 173% year-on-year to $41 billion in H1 22.