- Investments into renewable energy solutions topped half a trillion dollars in 2020.
- Investments in solar capacity increased by 12 per cent to $146 billion.
- Europe received the largest share of investments.
According to analysis from BNEF, global commitments to renewable energy clocked $501.3 billion in 2020. This value represents a 9 per cent increase from 2019, despite the disruption caused by the coronavirus pandemic. 2020, saw the largest ever addition of solar, and a $50 billion increase in offshore wind developments. BNEF’s analysis put the amount of investment in electric vehicles and associated charging infrastructure at $139 billion a 28 per cent increase. Investment in battery storage systems stalled at $3.6 billion despite the fall in prices. Investment in carbon capture and storage (CCS) grew by 300 per cent to $3 billion with hydrogen’s falling 20 per cent to $1.5 billion.
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Europe received the lion share of these investments driven by record adoption of electric vehicles ($166.2 billion), China saw $134.8 billion while the US received $85.3 billion. Notable renewable energy investments include the largest ever offshore wind project – the $8.3 billion 2.5GW Dogger Bank project in the U.K. North Sea. In 2020, the deal for the largest single solar park ever was closed – the $1.1 billion 2GW Al Dhafrah solar park in the United Arab Emirates.
Summarily, solar investment increased by 12 per cent to $148.6 billion, Wind (onshore and offshore) fell by 6 per cent to $142.7 billion. In comparison, investments in biomass/waste-to-energy fell 3 per cent to $10 billion.
Although the coronavirus pandemic hindered progress, the overall increase in renewable energy investments had been more than anticipated. As governments and businesses are increasingly adopting ambitious policies as they implement green stimulus programmes and commit to net-zero emission, it is expected that investments would increase. Although investments have reached half a trillion dollars, analysts at BNEF believe that investments into clean energy need to increase tremendously (trillions per year) to enable us to meet current climate targets.