Finance, Sourcing Renewables - August 3, 2021
Renewable Energy Investments Up in First Half of 2021
New investments in renewable energy projects grew to $174 billion in the first half of 2021, representing the highest total ever recorded for the first half of any year.
These investments were primarily supported by record public market financing and venture capital and private equity commitments, BloombergNEF found. The total amount of investment is 1.8% higher than the same time last year, although it remains 7% lower than the record set by the second half of 2020.
New equity from public markets made a new record with $28.2 billion in 1H 2021, in addition to venture capital and private equity commitments at $5.7 billion. During that time, solar investment rose 9% to a record $78.9 billion, while wind investments dropped year-on-year.
“Renewable energy investment has withstood the effects of the global pandemic, in contrast to other sectors of the energy economy where we have seen unprecedented volatility,” Albert Cheung, head of analysis at BloombergNEF, said in a statement. “However, a 1.8% year-on-year increase is nothing to write home about. An immediate acceleration in funding is needed if we are to get on track for global net zero.”
Refinancing of renewable energy projects, mergers, acquisitions and buyouts totaled $68.3 billion in 1H 2021, reflecting a growth of 18% from the previous year. China and the U.S. were found to lead the world in renewable energy investments.