RenewableS 2013 GlObal STaTUS RePORT - REN21

■■Renewable Energy Investment in
Perspective
Gross investment in renewable electric generating capacity
(not including hydro >50 MW) was USD 227 billion in 2012. This
compares with gross investment in fossil fuel-based capacity of
USD 262 billion. By this measure, the gap between renewables
and fossil fuels narrowed in 2012, with investment in renewable
power capacity down 10% relative to 2011 and fossil fuel
investment down about 13%.
Further, net investment in additional fossil fuels capacity is less
than gross investment, which includes spending on replacement
plants. By contrast, almost all investment in renewable
capacity is net, meaning that it adds to overall generating
capacity. Considering only net fossil fuel investment in 2012,
renewable power was in the lead for the third consecutive year,
with its USD 227 billion taking a wide lead over fossil fuels’
estimated USD 147.7. If investment in hydropower projects >50
MW is included, then global investment in renewable power
capacity was one-and-a-half to two times the net investment in
fossil fuels in 2012.
Bank, which granted Morocco USD 800 million in loans to
support renewable energy programmes.
■■Early Investment Trends in 2013
Global new investment in renewable energy in the first quarter
(Q1) of 2013 amounted to USD 40 billion, down 36% relative
to the final quarter of 2012, and the lowest level in any quarter
since Q1 2009.
Although the first quarter has often been the weakest of the
four in recent years, reflecting the fact that subsidies tend to
expire at the end of December, the weakness in Q1 2013 was
not just seasonal. Asset finance of utility-scale projects, venture
capital and private equity investment, and public markets
investment together totalled USD 21 billion in the first quarter,
down more than a third from the equivalent in the first three
months of 2012.
Small-scale project investment was USD 18.5 billion in the first
quarter of 2013, down slightly from a USD 20 billion quarterly
average in 2012. This reflected the further reduction in PV
module costs between Q1 2012 and Q1 2013.
■■Development and National Bank Finance
Development banks provided USD 79.1 billion of finance
in 2012 to broad clean energy, including hydro and other
renewable energy projects, manufacturers, research, energy
efficiency, transmissions, and distribution. This was down just
over 1% from 2011 levels. Of this amount, USD 50.8 billion of
finance went to renewable energy projects, manufacturers, and
research efforts, down slightly from the previous year.
The largest player was once again Germany’s KfW, which made
USD 26 billion (EUR 20 billion) of finance available, down 10%
on 2011 levels, followed by China Development Bank with USD
15 billion (up 1%), BNDES of Brazil (USD 11.9 billion), European
Investment Bank (USD 6 billion) and World Bank Group (USD
5 billion). Looking at core renewable energy lending, the
European investment Bank made some USD 5.6 billion (EUR
4.3 billion) available in 2012.
One key new trend in 2012 was the increasing role of smaller
and newer development banks in renewable energy financing.
These included the Development Bank of Southern Africa,
which approved loan facilities totalling USD 1 billion earmarked
for renewable energy projects, and the African Development
03
Renewables 2013 Global Status Report 63