A banner year for renewables
REN21 (the Renewable Energy and Policy Network for the 21st Century) has released its annual publication – the ‘Renewables 2010 Global Status Report’. REN21 is a global policy network that provides a forum for international leadership on renewable energy.
The new report says that 2009 was unprecedented in the history of renewable energy, despite the headwinds posed by the global financial crisis, lower oil prices, and slow progress with climate policy. “Indeed, as other economic sectors declined around the world, existing renewable capacity continued to grow at rates close to those in previous years, including grid-connected solar PV (53%), wind power (32%), solar hot water/heating (21%), geothermal power (4%), and hydropower (3%). Annual production of ethanol and biodiesel increased 10% and 9%, respectively, despite layoffs and ethanol plant closures in the United States and Brazil.”
Many recent trends also reflect the increasing significance of developing countries in advancing renewable energy. Collectively, developing countries have more than half of global renewable power capacity. China now leads in several indicators of market growth. India is fifth worldwide in total existing wind power capacity and is rapidly expanding many forms of rural renewables such as biogas and solar PV. Brazil produces virtually all of the world’s sugar-derived ethanol and has been adding new biomass and wind power plants. Developing countries now make up over half of all countries with policy targets (45 out of 85 countries) and also make up half of all countries with some type of renewable energy promotion policy (42 out of 83 countries).
Key findings: (1) For the second year in a row, in both the United States and Europe, more renewable power capacity was added than conventional power capacity (coal, gas, nuclear). Renewables accounted for 60% of newly installed power capacity in Europe in 2009, and nearly 20% of annual power production; (2) China added 37 GW of renewable power capacity, more than any other country in the world, to reach 226 GW of total renewables capacity. Globally, nearly 80 GW of renewable capacity was added, including 31 GW of hydro and 48 GW of non-hydro capacity; (3) Wind power additions reached a record high of 38 GW. China was the top market, with 13.8 GW added, representing more than one-third of the world market — up from just a 2% market share in 2004. The United States was second, with 10 GW added. The share of wind power generation in several countries reached record highs, including 6.5% in Germany and 14% in Spain.
‘Global Trends in Sustainable Energy Investment 2010 – Analysis of Trends and Issues in the Financing of Renewable Energy and Energy Efficiency’ is also a new report by SEFI, the United Nations Environment Programme’s (UNEP) Sustainable Energy Finance Initiative – a platform providing financiers with the tools, support, and global network needed to conceive and manage investments in the complex and rapidly changing marketplace for clean energy technologies. SEFI’s goal is to foster investment in sustainable energy projects by providing up-to-date investor information, facilitating deal origination, developing partnerships, and creating the momentum needed to shift sustainable energy from the margins of energy supply to the mainstream.
Key findings: (1) New investment in sustainable energy in 2009 was $162 billion, down from a revised $173 billion in 2008. The 7% fall reflected the impact of the recession on investment in Europe and North America in particular, with renewable energy projects and companies finding it harder to access finance; (2) China saw a surge in investment. Out of $119 billion invested worldwide by the financial sector in clean energy companies and utility-scale projects, $33.7 billion took place in China, up 53% on 2008. Financial investment in Europe was down 10% at $43.7 billion, while that in Asia and Oceania, at $40.8 billion, exceeded that in the Americas, at $32.3 billion, for the first time; (3) Research, development and deployment spending by governments and corporations totalled $24.6 billion in 2009, with government R&D up 49% at $9.7 billion and corporate RD&D down 16% at $14.9 billion. The shifts reflected greater willingness by governments to invest in research on sustainable energy technologies – to help generate economic activity – and also caution on the part of some big corporate players at a time when their profits were under pressure.
The SEFI report said that global new investment in sustainable energy reached $162 billion in the year 2009, the second highest figure ever, after 2008’s revised $173 billion. Although the 2009 figure was down by 7%, it was higher than the $157 billion achieved in 2007, at the height of the world economic boom, and it was nearly four times the 2004 total of $46 billion.