Please activate JavaScript!
Please install Adobe Flash Player, click here for download
ePaper created 2014-06-03, 15:03:20 | version 1.30.01
71 03 RENEWABLES 2014 GLOBAL STATUS REPORT The top investors in wind power were China, followed distantly by the United States, the United Kingdom, Germany, Canada, and India. The smaller technologies showed contrasting trends, with investment in biomass, small-scale hydro, and geothermal power up in developed economies but down significantly in developing countries, and biofuels down everywhere. Detailed statistics are not available for large hydropower projects over 50 MW in size, although they represent the third most important sector for renewable energy investment after solar and wind power. Translating hydropower capacity additions into asset finance dollars per year is not straightforward because the average project takes four years to build. However, BNEF estimates that asset financing for large-scale hydro projects commissioned in 2013 totalled at least USD 35 billion—more than a quarter of the USD 133.4 billion value of asset finance excluding large-scale hydro. Considering hydropower data provided by the industry and reported elsewhere in this GSR, investment in hydropower >50 MW may have been considerably higher.2 ■■ INVESTMENT BY TYPE Global research and developmentii declined 2% in 2013, to USD 9.3 billion, a modest reduction given that most “green stimulus” programmes expired during the 2011–2012 period. Nearly every region held steady or saw growth, with the exception of Asia- Oceania (excluding China and India), where R&D investment fell by 12%. Globally, the private sector invested more than the public sector for the third consecutive year, although the difference was marginal, with private investment falling by USD 300 million to USD 4.7 billion, and public investment rising USD 100 million to USD 4.6 billion. Total R&D spending on solar power declined 2% in 2013, to USD 4.7 billion, but the sector still received more funding than did all other technologies combined for the fourth consecutive year. R&D investment in wind and ocean power declined slightly, while it was up slightly for bio-power, geothermal, and small- scale hydropower, and stable for biofuels. Asset finance of utility-scale projects accounted for the vast majority (62%) of total investment in renewable energy, totalling USD 133.4 billion. However, it declined (13.5%) for the second consecutive year, to the lowest level since 2009. The decline is attributed largely to falling equipment costs, uncertainty over future energy support policies, and reduced investments by utilities. Project funding declined in Brazil, India, Europe, and the United States, but it increased modestly in other regions. China saw the largest amount of asset finance investment, accounting for 40% of the global total, thus consolidating its position as the world leader in deployment as well as manufacturing. Wind power (USD 75.4 billion) accounted for more than half of global asset finance, even though it declined for the third consecutive year; solar power (USD 44.4 billion) followed, but it was down for the second year running, with the decline reflecting lower costs per MW installed. Small-scale distributed capacity accounted for 28% of total investment, but it was down 25% to USD 59.9 billion in 2013, ending a six-year period of uninterrupted growth. This was a result of continued downward revisions of subsidies in Europe, as well as reductions in average system costs. Most of the major markets saw large declines in new investment: China, Germany, Italy, France, and the United Kingdom all recorded falls of between 50% and 80%. These were partially offset by a 76% increase in Japan, to USD 23 billion, driven by a generous solar feed-in tariff; and an 11% increase in the United States, to nearly USD 8 billion. Public market equity raised by renewable energy companies and funds was the bright spot in 2013, rising sharply after its 2012 slump and recovering to the average level of the previous five years. Spurred by renewed interest in clean energy stock offerings, investment in public markets increased by more than 200% to USD 11.1 billion. All technologies experienced growth, with the exception of small hydropower and ocean energy, which saw declines of 81% and 71%, respectively. Solar power (up 111%) was far ahead of others, with USD 4.8 billion, followed by wind (USD 2.6 billion), geothermal power (USD 1.6 billion), and biofuels (USD 1.5 billion). The WilderHill New Energy ii - See Sidebar 5 in GSR 2013, “Investment Types and Terminology,” for an explanation of investment terms used in this section.