Developing markets show growth in renewable energy investments
Investments in renewable energy soared high with China and India leading the emerging markets in their commitments in the wind and other related renewable sources. The UN's, 'Global Trends in Renewable Energy Investment 2016' report showed that the emerging markets like Brazil, India and China invested US$156 billion in fresh renewable sources in 2015, an increase of 19% from the previous year.
Commitments in renewable sources by developing markets exceeded those by developed nations, whose investments dropped 8% in 2015 to US$130 billion. The report also said that 2015 marked the first year of record-breaking commitments by emerging markets.
China's investment in renewable sources increased by 17% to US$102.9 billion, over one-third of global investments. India also lifted its investment by 22% to US$10.2 billion in 2015 and ranked among the top 10 nations investing in renewable sources. India's investment comes amid the pro-renewable strategies unveiled by its present government that included an anticipation of tripling its wind source to 60 GW by 2022, THE ECONOMIC TIMES quoted the UN report.
Among the developing markets, Brazil, India and China lifted their investments by 16% to US$120.2 billion and other emerging economies witnessed an investment bounce of 30% to US$36.1 billion in 2015. India's investments in utility-based solar projects increased 75% to US$4.6 billion from 2014, but still lower than the US$4.9 billion recorded in 2011. Huge renewable energy projects availing financing sanctions in India include Adani Ramanathapuram PV installation, at 200 megawatts and NTPC Kadiri PV plant stage one, at 250 megawatts.
Within the advanced economies, investments in the US increased by 19% to US$44.1 billion, while Japan's commitments remained almost flat at US$36.2 billion. However, Europe registered a poor investment in 2015, despite record high commitments in offshore wind sources. Investments in Europe declined 21% to US$48.8 billion from US$62 billion in the previous year.
The United Nation Environment Programme's executive director Achim Steiner said, "Renewables are becoming ever more central to our low-carbon lifestyles, and the record-setting investments in 2015 are further proof of this trend." The report said that the annual worldwide commitments in fresh renewable sources amounted to $266 billion, which was over double the $130 billion poured into gas and coal energy stations in the previous year.
The report also pointed out that global economies have spent $2.3 trillion in renewable sources since 2004. The increase in renewable investments from developing markets was driven by additional drops in generating expenses per megawatt-hour.
According to PACIFIC STANDARD, although there are plenty of renewable energy sources, the earth receives just 10% of energy from solar and wind power resources. The 134 gigawatts of new renewable capacity that was added in 2015 was offset by additional 82 gigawatts of gas and coal power stations.
The growing demand for power forced emerging countries like India and China to invest heavily in renewable sources. India, China and Brazil outstripped developed nations in 2015 renewable investments.