RenewableS 2013 GlObal STaTUS RePORT - REN21

03 INVESTMENT FLOWS
Global new investment in renewable power and fuels was USD
244 billion in 2012, down 12% from the previous year’s record
amount of USD 279 billion. 1 i (See Sidebar 5, p. 60, and Figure
21.) Despite the setback, the total in 2012 was the second
highest ever and 8% above the 2010 level. If the unreported
investments in hydropower projects larger than 50 MW and in
solar hot water collectors are included, total new investment
in renewable energy exceeded USD 285 in 2012. ii This is lower
than the equivalent estimate for 2011, however.
The decline in investment—after several years of growth—
resulted from uncertainty over support policies in Europe and
the United States, as well as from actual retroactive reductions
in support. On a more positive note, it also resulted from sharp
reductions in technology costs.
A major theme of 2012 was a further movement in activity from
developed to developing economies, although the former group
still accounted for more than half of global investment. In 2007,
developed economies invested two-and-a-half times more in
renewables (excluding large hydro) than developing countries
did; in 2012, the difference was only 15%. China was once
again the dominant country for renewable energy investment.
The other major theme of 2012 was a further, significant reduction
in the costs of solar PV technology. In fact, the continued
improvements in cost-competitiveness for solar and wind power
helped to support demand in many markets.
■■Investment by Economy
The year 2012 saw the most dramatic shift yet in the balance of
renewable energy investment worldwide, with the dominance
of developed countries waning and the importance of developing
countries growing. In the developing world, renewable
energy outlays reached USD 112 billion, up from USD 94 billion
in 2011, and represented some 46% of the world total (up
from 34% in 2011 and 37% in 2010). By contrast, outlays by
developed economies fell sharply (29%), from USD 186 billion
in 2011 to USD 132 billion in 2012, the lowest level since 2009.
This shift reflects three important trends: a reduction in
subsidies for wind and solar project development in Europe
and the United States; increasing investor interest in emerging
markets that offer both rising power demand and attractive
Figure 21. Global New Investment in Renewable Energy, 2004–2012
Source:
See Endnote 1
for this section.
Billion US Dollars
300
250
227
279
244
200
150
100
65
100
146
172 168
50
40
03
0
2004 2005 2006 2007 2008 2009 2010 2011 2012
i This section is derived from Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance (FS-UNEP) and Bloomberg New Energy
Finance (BNEF), Global Trends in Renewable Energy Investment 2013 (Frankfurt: 2013), the sister publication to the GSR. Figures are based on the output of
the Desktop database of BNEF unless otherwise noted. The following renewable energy projects are included: all biomass, geothermal, and wind generation
projects of more than 1 MW; all hydro projects of between 1 and 50 MW; all solar power projects, with those less than 1 MW estimated separately and referred to
as small-scale projects or small distributed capacity; all ocean energy projects; and all biofuel projects with an annual production capacity of 1 million litres or
more. For more detailed information, please refer to the FS-UNEP/BNEF Global Trends report.
ii Investment in large hydropower (>50 MW) and solar water collectors is not included in the overall total for investment in renewable energy. BNEF tracks only
hydropower projects of between 1 MW and 50 MW, and solar water collectors are not included with small-scale projects because they do not generate power.
Renewables 2013 Global Status Report 57