Please activate JavaScript!
Please install Adobe Flash Player, click here for download

GSR 2015 - Investment by Technology

82 03 INVESTMENT FLOWS developed economies. In terms of finance types, venture capital and private equity in solar power increased from USD 373 million in 2013 to USD 1.3 billion in 2014. US public market activity in solar power also did well in 2014, with a 76% increase to USD 5.9 billion. The US wind power sector faced a difficult year in 2014, with investment (excluding R&D) decreasing by half to USD 6.9 billion; funding was delayed due to uncertainty over whether the Production Tax Credit would be extended. Japan was not far behind the United States at USD 34.3 billion (excluding R&D). About 82% of the country’s total investment volume was spent on small-scale solar PV projects, driven by the country’s generous solar feed-in tariff. The United Kingdom saw a modest rise (1%) in renewable energy investments to USD 13.9 billion (excluding R&D). Wind power was again the country’s star sector, with USD 8 billion, 86% of which was for offshore projects. This compared with USD 2.7 billion invested in solar power. In addition, the United Kingdom was one of the few countries to attract ocean energy investment. The other leading investor in offshore wind projects, Germany, saw overall financing (excluding R&D) increase by 4% to USD 11.4 billion. Wind power attracted more than 2.5 times as much investment as in 2013. However, the solar power market of this former leader for investment in small-scale PV almost halved for the second year running. The decline was due largely to the decrease in feed-in tariff rates as well as to the self-consumption surcharge that was introduced in August 2014. Canada has been a steady investor in renewable energy in recent years. In 2014, the country attracted USD 8 billion in investment (excluding R&D), up almost 31% from the preceding year. Most of this increase was in asset finance, principally for large-scale wind projects in Ontario and Quebec, and for solar PV. Brazil climbed back into the top 10 countries in 2014, investing USD 7.4 billion (excluding R&D) in renewables, with wind power attracting 84% of the total. Brazil’s second biggest renewable energy sector, biofuels, saw USD 574 million invested, a long way from the USD 8.3 billion invested in 2007. Outside of Brazil, but still in the region, investment in renewable energy was widely distributed, with Mexico up 19% to USD 2 billion, followed by Chile (USD 1.4 billion), Uruguay, Panama, and Costa Rica. Investment in India rose 14% in 2014, to USD 7.4 billion. Solar power was the only sector to see growth during the year, with financing doubling to USD 3 billion. In contrast to 2013, capacity auctions in 2014 were fully subscribed, indicating that investor confidence has risen. Wind power attracted nearly half of India’s total investment, with USD 3.4 billion. The second largest investor in the Asia-Oceania region was Indonesia (USD 1.8 billion), followed by Myanmar, the Philippines, Sri Lanka, and Thailand. Of the top 10 countries for renewable energy investment, the Netherlands experienced the fastest growth relative to 2013. Investment rose from USD 1.9 in 2013 to USD 6.5 billion in 2014, with most of this going to offshore wind projects. South Africa led the African continent and retained its place among the top 10 countries. The country saw renewable energy investment increase 5% in 2014, to USD 5.5 billion. South Africa’s principal driver of renewables financing is the national tender programme. Approximately USD 1.6 billion (under 30%) was spent on wind in 2014, with 71% of total investment going to solar PV and CSP. The second largest investor in Africa was Kenya (USD 1.3 billion), followed by Algeria, Egypt, Nigeria, and Tanzania. ■■ INVESTMENT BY TECHNOLOGY Solar power was again the leading sector by far in terms of money committed during 2014, accounting for USD 149.6 billion, or more than 55% of total new investment in renewable power and fuels (not including hydropower >50 MW). Wind power followed with USD 99.5 billion, or 36.8% of the total (up 11% from 2013, to a new record). The remaining 8% was made up of biomass and waste-to-energyi (USD 8.4 billion), biofuels (USD 5.1. billion), small-scale hydropower (<50 MW) (USD 4.5 billion), geothermal power (USD 2.7 billion), and ocean energy (USD 0.4 billion). Of these technologies, geothermal (up 23%) and ocean (up 110%) saw increases in 2014, while investment declined in biofuels (-8%), biomass and waste-to-energy (-10%), and small-scale hydropower (-17%). (p See Figure 27.) Developing economies continued to represent the majority of investments in wind power, small-scale hydro, and geothermal power, whereas developed countries outweighed them in all other technologies. About 90% of solar power investment went to solar PV (USD 134.8 billion), with the remaining shares going to CSP (2.5%) and unspecified solar (7.4%). Solar power investment was up 25% compared with investment in the sector during 2013. Developed countries retained the majority in solar power investment, but their share shrank by nine percentage points to 58% due largely to a surge in China, which attracted more than one-quarter of the global total. The top developed country investor in solar was Japan, accounting for 23% of the total, followed by the United States (19%). The top investors in wind power were China, driven in part by anticipated reductions in the feed-in tariff, followed distantly by the United Kingdom, Germany, Netherlands, Brazil, and India. Other renewable energy technologies showed contrasting trends, with investment in small-scale hydropower up in developed economies but down significantly in developing countries, and biofuels and geothermal down in developed economies but up in developing economies. Biomass decreased in developed and developing countries, whereas ocean energy investment increased in developed and developing countries. Detailed statistics are not tracked by BNEF 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 2014 totalled at least USD 31 billion. Considering hydropower data provided by the industry and reported elsewhere in this GSR, investment in hydropower >50 MW may have been considerably higher.3 i - Includes all waste-to-power technologies, but not waste-to-gas.

Pages Overview