RENEWABLES 2023 GLOBAL STATUS REPORT

RENEWABLES
IN ENERGY DEMAND

Topic: Investment

This topic bundles the Investment sections accross energy demand sectors of this publication. Expand by clicking on one of the topics.



Buildings in Focus | Investment in Buildings

Investment

Data on investment in renewables specifically in the buildings sector are limited, both for power and for heat. However, assuming that the buildings sector consumed around half of all power generated worldwide in 2022, then roughly USD 244.8 billion of the global new investment in renewable power capacity that year would have gone to buildings. 78

Influenced in large part by the Russian Federation's invasion of Ukraine and by the transition away from Russian gas, European investment in heat pumps rose sharply in 2022, particularly in Austria, Finland, Germany, Italy, the Netherlands and Poland. 79 Globally, heat pump investments increased 9.6% during the year, to USD 64.3 billion, with the strongest market growth in Europe, Japan and the United States. 80 Many US consumers were drawn to heat pumps to alleviate higher utility bills related to inflation. 81

Investments also occurred in renewable-fed district heating systems for buildings. In Groningen, the Netherlands, a “special purpose vehicle” comprising the project developer, an investor and a turnkey provider of the solar field invested EUR 23 million (USD 25 million) in the world's fourth largest solar district heating plant. 82 In Markham, Canada, a CAD 270 million (USD 199 million) investment was dedicated to expanding the city's low-carbon district energy system. 83 Germany announced a EUR 3 billion (USD 3.2 billion) programme to finance the construction of heating networks supplied by at least 75% renewable or waste heat, as well as the decarbonisation of existing networks, to further reduce CO2 emissions and the country's dependence on Russian energy. 84

Although markets for solar thermal technologies (including solar water and space heating in buildings) remained broadly stable during 2021-2022, rising inflation and interest rates affected investments in some regions. 85 In Europe, some energy utilities and energy-intensive industries faced higher energy costs, which led many companies to put on hold new investment decisions. 86

Investment in energy efficiency in buildings surged in 2021 but was expected to slow in 2022 due to higher construction, material and financing costs as well as lower spending in emerging and developing markets. 87 European countries, the United States and China have dominated energy efficiency investment in recent years, reflecting the recovery of construction investment in Western Europe and ongoing construction growth in China, Germany and the United States. 88 Energy efficiency investment in Southeast Asia and Africa has struggled due to pandemic-related dis-ruptions to construction as well as limited public programmes for investment. 89

As of late 2022, only 40% of countries had mandatory building energy codes.
  1. International Energy Agency (IEA), “World Energy Balances 2020: Extended Energy Balances,” August 2022, https://www.iea.org/data-and-statistics/data-product/world-energy-balances, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).1
  2. Ibid.2
  3. Ibid.3
  4. Ibid.4
  5. Organisation for Economic Co-operation and Development (OECD), “Decarbonising Buildings in Cities and Regions,” June 2022, https://read.oecd-ilibrary.org/urban-rural-and-regional-development/decarbonising-buildings-in-cities-and-regions_a48ce566-en.5
  6. IEA, op. cit. note 1.6
  7. Ibid. 7
  8. IEA, “Buildings – Analysis,” September 2022, https://www.iea.org/reports/buildings.8
  9. Ibid.9
  10. Figure 3 from IEA, op. cit. note 1.10
  11. Ibid.11
  12. Figure 4 from Ibid.12
  13. IEA, op. cit. note 1.13
  14. Ibid.14
  15. Ibid.15
  16. Ibid.16
  17. IEA et al., “Tracking SDG 7: The Energy Progress Report 2022,” 2022, https://trackingsdg7.esmap.org/data/files/download-documents/sdg7-report2022-full_report.pdf; L. Cozzi et al., “For the First Time in Decades, the Number of People Without Access to Electricity Is Set to Increase in 2022 – Analysis,” IEA, November 3, 2022, https://www.iea.org/commentaries/for-the-first-time-in-decades-the-number-of-people-without-access-to-electricity-is-set-to-increase-in-2022.17
  18. IEA et al., op. cit. note 17.18
  19. Cozzi et al., op. cit. note 17; Empresa de Pesquisa Energética, “Brazilian Energy Balance – Year 2021,” 2022, https://www.epe.gov.br/sites-pt/publicacoes-dados-abertos/publicacoes/PublicacoesArquivos/publicacao-675/topico-638/BEN2022.pdf. 19
  20. See Box 2 in “Global Overview” in REN21, “Renewables 2022 Global Status Report,” 2022, www.ren21.net/gsr-2022.20
  21. Figure 5 from IEA, “Heating – Analysis,” 2022, https://www.iea.org/reports/heating.21
  22. IEA, op. cit. note 1.22
  23. IEA, “Renewables 2022 – Analysis,” 2022, https://www.iea.org/reports/renewables-2022.23
  24. IEA, op. cit. note 1.24
  25. IEA, op. cit. note 21.25
  26. IEA, “Heat Pumps – Analysis,” 2022, https://www.iea.org/reports/heat-pumps; IEA, op. cit. note 1.26
  27. IEA, op. cit. note 1. 27
  28. IEA, op. cit. note 1; IEA, op. cit. note 21. 28
  29. IEA, “Energy Efficiency 2022 – Analysis,” 2022, https://www.iea.org/reports/energy-efficiency-2022.29
  30. IEA, op. cit. note 1; B. Naran, R. Padmanabhi and P. Rosane, “Tracking Incremental Energy Efficiency Investments in Certified Green Buildings,” Climate Policy Initiative, December 16, 2021, https://www.climatepolicyinitiative.org/publication/incremental-investments-in-energy-efficiency-in-green-buildings.30
  31. Ibid.31
  32. J. Psaropoulos, “Is Ukraine War Speeding Europe's Transition to Renewable Energy?” Al Jazeera, November 6, 2022, https://www.aljazeera.com/news/2022/11/6/is-ukraine-war-speeding-europes-transition-to-renewable-energy; IEA, “Executive Director Rebuts Three Myths About Today's Global Energy Crisis,” September 7, 2022, https://www.iea.org/news/executive-director-rebuts-three-myths-about-today-s-global-energy-crisis. Snapshot: Europe based on the following sources: Eurostat, “Energy Balance Visualisation Tool,” https://ec.europa.eu/eurostat/cache/infographs/energy_balances/enbal.html, accessed November 14, 2022; IEA, “A 10-Point Plan to Reduce the European Union's Reliance on Russian Natural Gas – Analysis,” March 2022, https://www.iea.org/reports/a-10-point-plan-to-reduce-the-european-unions-reliance-on-russian-natural-gas; G. Zachmann, G. Sgaravatti and B. McWilliams, “European Natural Gas Imports,” Bruegel, https://www.bruegel.org/dataset/european-natural-gas-imports, accessed November 14, 2022; European Commission, “REPowerEU: Joint European Action for More Affordable, Secure and Sustainable Energy,” May 18, 2022, https://eur-lex.europa.eu/resource.html?uri=cellar:fc930f14-d7ae-11ec-a95f-01aa75ed71a1.0001.02/DOC_1&format=PDF; B. Claeys, J. Rosenow and M. Anderson, “Is REPowerEU the Right Energy Policy Recipe to Move Away from Russian Gas?” Euractiv, June 27, 2022, https://www.euractiv.com/section/energy/opinion/is-repowereu-the-right-energy-policy-recipe-to-move-away-from-russian-gas; Odyssee-Mure, “EU Heating Energy | Heating Energy Consumption by Energy Source,” https://www.odyssee-mure.eu/publications/efficiency-by-sector/households/heating-energy-consumption-by-energy-sources.html, accessed November 14, 2022; D. Gibb et al., “Turning Off the Gas: Stronger and Coherent EU Policy to Accelerate the Fossil Gas Phaseout,” Regulatory Assistance Project, October 18, 2022, https://www.raponline.org/knowledge-center/turning-off-gas-stronger-coherent-eu-policy-accelerate-fossil-gas-phaseout; Buildings Performance Institute of Europe, “EPBD Recast: New Provisions Need Sharpening to Hit Climate Targets,” January 20, 2022, https://www.bpie.eu/publication/epbd-recast-new-provisions-need-sharpening-to-hit-climate-targets.32
  33. Ember, “EU's Record Growth in Wind and Solar Avoids €11bn in Gas Costs During War,” October 18, 2022, https://ember-climate.org/press-releases/eus-record-growth-in-wind-and-solar-avoids-e11bn-in-gas-costs-during-war.33
  34. IEA, op. cit. note 23; BloombergNEF, “Energy Transition Factbook 2022,” September 2022, https://assets.bbhub.io/professional/sites/24/BloombergNEF-CEM-2022-Factbook.pdf.34
  35. IEA, op. cit. note 23.35
  36. Bnamericas, “Ministry of Energy Launches National Heat and Cold Strategy,” June 24, 2021, https://www.bnamericas.com/en/news/ministry-of-energy-launches-national-heat-and-cold-strategy; Government of the UK, “Heat and Buildings Strategy,” October 29, 2021, https://www.gov.uk/government/publications/heat-and-buildings-strategy; Sustainable Energy Authority of Ireland, “National Heat Study,” https://www.seai.ie/data-and-insights/national-heat-study, accessed October 29, 2022.36
  37. N. Kurmayer, “Netherlands to Ban Fossil Heating from 2026, Make Heat Pumps Mandatory,” Euractiv, May 17, 2022, https://www.euractiv.com/section/energy-environment/news/netherlands-to-ban-fossil-heating-by-2026-make-heat-pumps-mandatory.37
  38. L. Sunderland and D. Gibb, “Taking the Burn Out of Heating for Low-Income Households,” Regulatory Assistance Project, December 1, 2022, https://www.raponline.org/knowledge-center/taking-burn-out-of-heating-low-income-households.38
  39. D. Gibb, S. Thomas and J. Rosenow, “Metrics Matter: Efficient Renewable Heating and Cooling in the Renewable Energy Directive,” Regulatory Assistance Project, September 6, 2022, https://www.raponline.org/knowledge-center/metrics-matter-efficient-renewable-heating-cooling-renewable-energy-directive.39
  40. European Parliament, “Renewable Energy Directive – Amendments Adopted in Sept 2022,” September 14, 2022, https://www.europarl.europa.eu/doceo/document/TA-9-2022-0317_EN.pdf.40
  41. R. Lowes et al., “A Policy Toolkit for Global Mass Heat Pump Deployment,” Regulatory Assistance Project, November 14,
    2022, https://www.raponline.org/knowledge-center/policy-toolkit-global-mass-heat-pump-deployment. 41
  42. Chinese Ministry of Housing and Urban-Rural Development, “14th Five-Year' Building Energy Efficiency and Green Building Development Plan,” 2021, www.mohurd.gov.cn/gongkai/fdzdgknr/zfhcxjsbwj/202203/20220311_765109.html.42
  43. IEA, “World Energy Outlook 2022,” October 2022, https://www.iea.org/reports/world-energy-outlook-2022.43
  44. REN21 Policy Database. See Reference Table R1 in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.44
  45. G. De Clercq, “France Ends Gas Heaters Subsidies, Boosts Heat Pumps in Bid to Cut Russia Reliance,” Reuters, March 16, 2022, https://www.reuters.com/world/europe/france-ends-gas-heaters-subsidies-boosts-heat-pumps-bid-cut-russia-reliance-2022-03-16.45
  46. B. Epp, “Fund of EUR ٣ Billion for Decarbonising German District Heating,” Solar Thermal World, August 30, 2022, https://solarthermalworld.org/news/fund-of-eur-3-billion-for-decarbonising-german-district-heating.46
  47. Ministerio para la Transición Ecológica y el Reto Demográfico, “Real Decreto 477/2021, de 29 de junio, por el que se aprueba la concesión directa a las comunidades autónomas y a las ciudades de ceuta y melilla de ayudas para la ejecución de diversos programas de incentivos ligados al autoconsumo y al almacenamiento, con fuentes de energía renovable, así como a la implantación de sistemas térmicos renovables en el sector residencial, en el marco del plan de recuperación, transformación y resiliencia,” 2021, https://www.boe.es/eli/es/rd/2021/06/29/477; A. Rosell, “More Than EUR 1 Billion of Incentives Available in Spain,” Solar Thermal World, October 12, 2022, https://solarthermalworld.org/news/more-than-eur-1-billion-of-incentives-available-in-spain.47
  48. Government of the UK, “Ditching Costly Gas and Oil Is Cheaper Thanks to Heat Pump Scheme,” May 23, 2022, https://www.gov.uk/government/news/ditching-costly-gas-and-oil-is-cheaper-thanks-to-heat-pump-scheme.48
  49. E. Hougaard, “Energistyrelsen åbner for ansøgninger til tilskudsordning for etablering af eldrevne varmepumper og solvarmeanlæg til produktion af fjernvarme,” Energistyrelsen, July 12, 2022, https://ens.dk/presse/energistyrelsen-aabner-ansoegninger-til-tilskudsordning-etablering-af-eldrevne-varmepumper-og.49
  50. B. Epp, “EUR ٦٥ Million Provided for Solar District Heating in Kosovo,” Solar Thermal World, July 7, 2022, https://solarthermalworld.org/news/eur-65-million-provided-for-solar-district-heating-in-kosovo.50
  51. cking, “What the ‘Inflation Reduction Act of 2022' Means for Solar,” Solar Energy International, August 22, 2022, https://www.solarenergy.org/what-the-inflation-reduction-act-of-2022-means-for-solar.51
  52. United News of India, “UP Targets to Generate 22k MW Solar Energy in Next 5 Yrs,” November 16, 2022, http://www.uniindia.com/~/up-targets-to-generate-22k-mw-solar-energy-in-next-5-yrs/Business Economy/news/2861956.htm.52
  53. R. Desmornes, “The Inflation Reduction Act ‘Pumps Up' Heat Pumps,” HVAC Solutions, November 4,2022, https://www.hvac.com/resources/inflation-reduction-act-heat-pump-rebates; Rewiring America, “High-Efficiency Electric Home Rebate Act,” 2022, https://www.rewiringamerica.org/policy/high-efficiency-electric-home-rebate-act.53
  54. D. Gibb and M. Morawiecka, “Cleaning Up Heat: The Changing Economics for Heat Pumps in Poland,” Regulatory Assistance Project, November 7, 2022, https://www.raponline.org/knowledge-center/cleaning-up-heat-the-changing-economics-for-heat-pumps-in-poland.54
  55. Bercy Infos, “MaPrimeRénov': la prime pour la rénovation énergétique,” December 30, 2022, https://www.economie.gouv.fr/particuliers/prime-renovation-energetique.55
  56. Figure 6 from REN21 Policy Database, op. cit. note 44.56
  57. J. Cheng, “Importance of Energy Standards in Supporting Affordable Growth of the High Efficiency Heat Pump Market in China,” 8th IEA-Tsinghua Joint Workshop: Making Buildings Zero-Carbon Ready by 2030 – Near-term Solutions for Heating Systems, 27 October, 2022, https://www.iea.org/events/the-8th-iea-tsinghua-joint-workshop-making-buildings-zero-carbon-ready-by-2030-near-term-solutions-for-heating-systems. Snapshot: China based on the following sources: Energy Foundation China, “Synthesis Report 2022 on China's Carbon Neutrality: Electrification in China's Carbon Neutrality Pathways,” 13 November, 2022, https://www.efchina.org/Reports-en/report-lceg-20221104-en; IEA, “Clean Winter Heating Plan in Northern China (2017-2021) – Policies,” May 17,2021, https://www.iea.org/policies/7906-clean-winter-heating-plan-in-northern-china-2017-2021; 65% from Energy Foundation China, “Research on the Control Strategy of Scattered Coal Pollution in the ‘14th Five-Year Plan' Period,” November 9, 2021, https://www.efchina.org/Attachments/Report/report-cemp-20220305-7/%E6%89%A7%E8%A1%8C%E6%91%98%E8%A6%81-%E5%8D%81%E5%9B%9B%E4%BA%94-%E5%9B%BD%E5%AE%B6%E6%95%A3%E7%85%A4%E6%B1%A1%E6%9F%93%E6%8E%A7%E5%88%B6%E7%AD%96%E7%95%A5%E7%A0%94%E7%A9%B6.pdf (using Google Translate); B. Epp, “China: Beijing Mandates Solar Hot Water Systems,” Solar Thermal World, March 23, 2012, https://solarthermalworld.org/news/china-beijing-mandates-solar-hot-water-systems; Chinese Ministry of Housing and Urban-Rural Development, “‘14th Five-Year' Building Energy Efficiency and Green Building Development Plan,” 2022, https://www.ndrc.gov.cn/xwdt/tzgg/202206/P020220602315650388122.pdf; C. Farand, “China's Ambitious Rooftop Solar Pilot Helps Drive ‘Blistering' Capacity Growth,” Climate Home News, July 14, 2022, https://www.climatechangenews.com/2022/07/14/chinas-ambitious-rooftop-solar-pilot-helps-drive-blistering-capacity-growth; Government of China, “'The 14th Five-Year Plan' Building Energy Conservation and Green Building Development Plan' was issued to complete the energy-saving renovation of existing buildings with an area of more than 350 million square meters by 2025,” March 22, 2022, http://www.gov.cn/xinwen/2022-03/22/content_5680355.htm.57
  58. Energy Foundation China, op. cit. note 57.58
  59. D. Gibb and A. Jahn, “‘Game On' for Germany's Heat Pump Transformation,” Regulatory Assistance Project, July 20, 2022, https://www.raponline.org/blog/game-on-germany-heat-pump-transformation.59
  60. N. Kurmayer, “Netherlands to Ban Fossil Heating from 2026, Make Heat Pumps Mandatory,” Euractiv, May 17, 2022, https://www.euractiv.com/section/energy-environment/news/netherlands-to-ban-fossil-heating-by-2026-make-heat-pumps-mandatory.60
  61. Data as of 9 February 2023, from Building Decarbonization Coalition, “Zero Emissions Building Ordinances,” 2022, https://www.buildingdecarb.org/zeb-ordinances.html.61
  62. Ibid.62
  63. L. Louis-Prescott and R. Golden, “How Local Governments and Communities Are Taking Action to Get Fossil Fuels Out of Buildings,” RMI, August 9, 2022, https://rmi.org/taking-action-to-get-fossil-fuels-out-of-buildings.63
  64. E. Pontecorvo, “California's 2030 Ban on Gas Heaters Opens a New Front in the War on Fossil Fuels,” Grist, September 26, 2022, https://grist.org/buildings/californias-2030-ban-on-gas-heaters-opens-a-new-front-in-the-war-on-fossil-fuels; New York State Public Service Commission, “PSC Breathes New Life into Popular Con Edison Clean Heat Program,” November 8, 2022, https://ar.dps.ny.gov/system/files/documents/2022/10/psc-breathes-new-life-into-popular-con-edison-clean-heat-program.pdf.64
  65. T. DiChristopher and A. Duquiatan, “States That Outlaw Gas Bans Account for 31% of US Residential/Commercial Gas Use,” S&P Global Commodity Insights, June 9, 2022, https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/states-that-outlaw-gas-bans-account-for-31-of-us-residential-commercial-gas-use-70749584.65
  66. European Commission, op. cit. note 32.66
  67. E. Christensen, “California's New Building Energy Efficiency Standards, Mandating Solar + Storage, Are Set to Go into Effect on January 1, 2023,” August 1, 2022, https://www.energytoolbase.com/newsroom/blog/californias-new-building-energy-efficiency-standards-mandating-solar-storage.67
  68. J. Spector, “California Is Finally Unlocking Community Solar for the Masses,” Canary Media, September 8, 2022, https://www.canarymedia.com/articles/solar/california-is-finally-unlocking-community-solar-for-the-masses.68
  69. J. John, “New California Rooftop-Solar Plan Drops ‘Solar Tax,' But Fears Remain,” Canary Media, November 10, 2022, https://www.canarymedia.com/articles/solar/new-california-rooftop-solar-plan-drops-solar-tax-but-fears-remain.69
  70. CTV News, “N.S. Government Kills Electric Utility's Bid to Impose ‘Net-Metering' Charge on Solar,” Atlantic, February 2, 2022, https://atlantic.ctvnews.ca/n-s-government-kills-electric-utility-s-bid-to-impose-net-metering-charge-on-solar-1.5764723.70
  71. IEA, op. cit. note 1.71
  72. Global Alliance for Buildings and Construction, “2022 Global Status Report for Buildings and Construction,” 2022, http://globalabc.org/our-work/tracking-progress-global-status-report.72
  73. Chinese Ministry of Housing and Urban-Rural Development, op. cit. note 57.73
  74. Global Alliance for Buildings and Construction, op. cit. note 72.74
  75. D. Rajeev, “Energy Conservation Bill 2022: Implications and Next Steps,” The Economic Times, December 28, 2022, https://economictimes.indiatimes.com/industry/renewables/energy-conservation-bill-2022-implications-and-next-steps/articleshow/96562493.cms.75
  76. T. Sawachi, “Context for Building Heating Systems and How Their Energy Efficiencies Are Evaluated in a Building Energy Code of Japan,” 8th IEA-Tsinghua Joint Workshop: Making Buildings Zero-Carbon Ready by 2030 – Near-term Solutions for Heating Systems, October 2022, https://iea.blob.core.windows.net/assets/9820c21f-47dc-431d-8b11-28b99dfab44c/
    Session1Presentation4TakaoSawachiContextforbuilding
    heatingsystemsinJapan.pdf    .76
  77. IEA, op. cit. note 21.77
  78. Based on USD 489.6 billion global new investment in renewable power capacity in 2022 (not including hydropower projects larger than 50 MW), from BloombergNEF, “Energy Transition Investment Trends 2023,” 2023, https://about.bnef.com/energy-transition-investment; 50% from M. Santamouris and K. Vasilakopoulou, “Present and Future Energy Consumption of Buildings: Challenges and Opportunities Towards Decarbonisation,” E-Prime – Advances in Electrical Engineering, Electronics and Energy, Vol. 1 (January 1, 2021): 100002, https://doi.org/10.1016/j.prime.2021.100002.78
  79. K. Mathiesen et al., “Putin's War Accelerates the EU's Fossil Fuel Detox,” Politico, October 12, 2022, https://www.politico.eu/article/vladimir-putin-war-ukraine-accelerates-eu-fossil-fuel-detox.79
  80. BloombergNEF, op. cit. note 78; IEA, “World Energy Investment 2022,” 2022, https://iea.blob.core.windows.net/assets/b0beda65-8a1d-46ae-87a2-f95947ec2714/WorldEnergyInvestment2022.pdf.80
  81. IEA, op. cit. note 80.81
  82. B. Epp, “37 MW Solar District Heating Plant in the Netherlands with Outstanding Features,” Solar Thermal World, November 11, 2022, https://solarthermalworld.org/news/37-mw-solar-district-heating-plant-in-the-netherlands-with-outstanding-features.82
  83. International District Energy Association, “Canada Infrastructure Bank, CIBC and Markham District Energy Close $270 Million District Energy Infrastructure Investment,” November 25, 2022, https://www.districtenergy.org/blogs/district-energy/2022/11/25/canada-infrastructure-bank-cibc-and-markham-distri.83
  84. B. Epp, “Fund of EUR 3 Billion for Decarbonising German District Heating,” Solar Thermal World, August 30, 2022, https://solarthermalworld.org/news/fund-of-eur-3-billion-for-decarbonising-german-district-heating; A. Walstad, “Germany Ploughs €3bn into Phasing out District Heating Gas,” Gas Outlook, August 18, 2022, https://gasoutlook.com/analysis/germany-ploughs-e3bn-into-phasing-out-district-heating-gas.84
  85. IEA, op. cit. note 80; Solar Heat Europe, “Solar Heat Market Report 2021,” December 2022, http://solarheateurope.eu/wp-content/uploads/2022/12/Solar_Heat_Market_Report-2021.pdf.85
  86. Solar Heat Europe, op. cit. note 85.86
  87. IEA, “Energy Efficiency 2022,” 2022, https://iea.blob.core.windows.net/assets/7741739e-8e7f-4afa-a77f-49dadd51cb52/EnergyEfficiency2022.pdf.87
  88. IEA, op. cit. note 80.88
  89. Ibid.89
  90. IEA, “Approximately 100 Million Households Rely on Rooftop Solar PV by 2030 – Analysis,” September 2022, https://www.iea.org/reports/approximately-100-million-households-rely-on-rooftop-solar-pv-by-2030.90
  91. IEA, “Solar PV – Analysis,” September 2022, https://www.iea.org/reports/solar-pv.91
  92. Ibid.92
  93. IEA Photovoltaic Power Systems Programme (PVPS), “Trends in PV Applications 2022,” 2022, https://iea-pvps.org/trends_reports/trends-2022; IEA, op. cit. note 91.93
  94. IEA PVPS, op. cit. note 93.94
  95. Ibid.95
  96. Ibid.96
  97. Ibid.97
  98. Fortum, “Fortum and Microsoft Announce World's Largest Collaboration to Heat Homes, Services and Businesses with Sustainable Waste Heat from New Data Centre Region,” March 17, 2022, https://www.fortum.com/media/2022/03/fortum-and-microsoft-announce-worlds-largest-collaboration-heat-homes-services-and-businesses-sustainable-waste-heat-new-data-centre-region; IrishCentral, “Heat Created by Amazon Data Center in Dublin to Be Used in Local Housing,” September 22, 2021, https://www.irishcentral.com/news/amazon-data-center-dublin-heat-local-housing; World Economic Forum, “Your Data Could Warm You Up This Winter, Here's How,” August 8, 2022, https://www.weforum.org/agenda/2022/08/sustainable-data-centre-heating; P. Judge, “Vienna Hospital to Get Waste Heat from Interxion Data Center,” Data Center Dynamics, April 27, 2022, https://www.datacenterdynamics.com/en/news/vienna-hospital-to-get-waste-heat-from-interxion-data-center.98
  99. IEA, op. cit. note 1.99
  100. International Renewable Energy Agency (IRENA), “Bioenergy for the Transition: Ensuring Sustainability and Overcoming Barriers,” August 2022, https://www.irena.org/publications/2022/Aug/Bioenergy-for-the-Transition.100
  101. N. Kurmayer, “As Winter Looms, Germans Increasingly Turn to Wood for Heating,” Euractiv, September 23, 2022, https://www.euractiv.com/section/energy/news/as-winter-looms-germans-increasingly-turn-to-wood-for-heating; Euronews, “Energy Crisis: Germans Turn to Wood Burning Stoves to Save on Gas,” November 11, 2022, https://www.euronews.com/green/2022/11/11/energy-crisis-in-germany-rising-trend-in-wood-burning-stoves-to-save-on-gas; H. Thompson, “Wood Pellet Shortages in France Cause Prices to Soar,” Connexionfrance, 15 September, 2022, https://www.connexionfrance.com/article/French-news/Wood-pellet-shortages-in-France-cause-prices-to-soar; D. Brooks, “Wood Pellets May Be Scarcer, and More Costly, This Winter,” NH Business Review, October 21, 2022, https://www.nhbr.com/wood-pellets-may-be-scarcer-and-more-costly-this-winter; United Nations Economic Commission for Europe, “Wood Energy on the Rise in Europe,” November 4, 2022, https://unece.org/climate-change/press/wood-energy-rise-europe.101
  102. IRENA, op. cit. note 100.102
  103. IEA, op. cit. note 21.103
  104. W. Weiss and M. Spörk-Dür, “Solar Heat Worldwide: Edition 2022,” May 2022, https://www.iea-shc.org/Data/Sites/1/publications/Solar-Heat-Worldwide-2022.pdf.104
  105. Ibid.105
  106. B. Epp, “IEA SHC Solar Award Winner: Social Housing Project in Namibia,” Solar Thermal World, October 18, 2022, https://solarthermalworld.org/news/iea-shc-solar-award-winner-social-housing-project-in-namibia; Southern African Solar Thermal Demonstration and Training Initiative (SOLTRAIN), “Solar Thermal Roadmaps,” https://soltrain.org/assets/roadmaps, accessed November 20, 2022.106
  107. J. Meyer, “Strongly Downsized, But Crisis-Ridden Solar Collector Industry in Germany,” Solar Thermal World, August 2, 2022, https://solarthermalworld.org/news/strongly-downsized-but-crisis-ridden-solar-collector-industry-in-germany; J. Meyer, “Survey of German Solar Collector Industry: ‘Daily Struggle to Procure Materials,'” Solar Thermal World, August 4, 2022, https://solarthermalworld.org/news/survey-of-german-solar-collector-industry-daily-struggle-to-procure-materials; E. Gerden, “Russian Solar Thermal Industry in Deep Crisis,” Solar Thermal World, September 18, 2022, https://solarthermalworld.org/news/russian-solar-thermal-industry-in-deep-crisis.107
  108. Weiss and Spörk-Dür, op. cit. note 104; B.Epp, “37 MW solar district heating plant in the Netherlands with outstanding features,” Solar Thermal World, November 11, 2022, https://solarthermalworld.org/news/37-mw-solar-district-heating-plant-in-the-netherlands-with-outstanding-features.108
  109. Weiss and Spörk-Dür, op. cit. note 104.109
  110. J. Lund and A. Toth, “Direct Utilization of Geothermal Energy 2020 Worldwide Review,” Geothermics, Vol. 90 (February 2021): 101915, https://www.sciencedirect.com/science/article/pii/S0375650520302078. 110
  111. Ibid.111
  112. Ibid.112
  113. C. Cariaga, “Sinopec Launches Expanded Geothermal Heating in China for Winter,” ThinkGeoEnergy, November 17, 2022, https://www.thinkgeoenergy.com/sinopec-launches-expanded-geothermal-heating-for-winter.113
  114. Ibid.; D. Olick, “Largest-Ever Geothermal Grid Under This Texas Housing Development Is Saving Homeowners Serious Money,” CNBC, 2022, https://www.cnbc.com/2022/09/01/geothermal-powered-housing-development-saves-homeowners-big-bucks.html; US Department of Energy, “Community Geothermal Heating and Cooling Design and Deployment,” July 12, 2022, https://www.energy.gov/eere/geothermal/articles/community-geothermal-heating-and-cooling-design-and-deployment.114
  115. IEA Geothermal, “2021 Annual Report,” October 2022, https://iea-gia.org/publications-2/annual-reports.115
  116. C. Cariaga, “Canada to Invest in Geothermal Projects in Nova Scotia,” ThinkGeoEnergy, November 10, 2022, https://www.thinkgeoenergy.com/canada-to-invest-on-geothermal-projects-in-nova-scotia.116
  117. C. Cariaga, “EGEC Market Report 2021 Highlights Post-COVID Resurgence of Geothermal,” ThinkGeoEnergy, June 14, 2022, https://www.thinkgeoenergy.com/egec-market-report-2021-highlights-post-covid-resurgence-of-geothermal. 117
  118. Ibid. 118
  119. C. Cariaga, “Meudon, France Targets Geothermal District Heating by 2026,” ThinkGeoEnergy, November 7, 2022, https://www.thinkgeoenergy.com/meudon-france-targets-geothermal-district-heating-by-2026; C. Cariaga, “Germany Aims for 100 New Geothermal Projects by 2030,” ThinkGeoEnergy, November 11, 2022, https://www.thinkgeoenergy.com/germany-aims-for-100-new-geothermal-projects-by-2030; C. Cariaga, “Geothermal Heating Plant in Torun, Poland Officially Opens,” ThinkGeoEnergy, October 13, 2022, https://www.thinkgeoenergy.com/geothermal-heating-plant-in-torun-poland-officially-opens. 119
  120. C. Cariaga, “Wien Energie to Build First Geothermal Heating Plant in Vienna, Austria,” ThinkGeoEnergy, November 15, 2022, https://www.thinkgeoenergy.com/wien-energie-to-build-first-geothermal-heating-plant-in-vienna-austria.120
  121. J. Rosenow et al., “Heating Up the Global Heat Pump Market,” Nature Energy (September 7, 2022): 1-4, https://doi.org/10.1038/s41560-022-01104-8; IEA, op. cit. note 26.121
  122. Installatore Professionale, “Climatizzazione: incrementi a tre cifre per le pompe di calore idroniche nel primo semestre 2022,” July 29, 2022, https://www.installatoreprofessionale.it/news/905-climatizzazione-incrementi-a-tre-cifre-per-le-pompe-di-calore-idroniche-nel-primo-semestre-2022.html; M. Beerling, “Reactie Vereniging Warmtepompen op Gasmonitor 2022,” Vereniging Warmtepompen, September 5, 2022, https://warmte-pompen.nl/reactie-vereniging-warmtepompen-op-gasmonitor-2022; PORT PC, “Ponad dwukrotny wzrost sprzedaży powietrznych pomp ciepła w I poł. 2022 roku!,” Polska Organizacja Rozwoju Technologii Pomp Ciepła, August 17, 2022, https://portpc.pl/ponad-dwukrotny-wzrost-sprzedazy-powietrznych-pomp-ciepla-w-i-pol-2022-roku; J. Hirvonen, “Record High Sales Growth of 80% Recorded for Heat Pumps in the First Six Months of the Year in Finland,” SULPU, July 19, 2022, https://www.sulpu.fi/record-high-sales-growth-of-80-recorded-for-heat-pumps-in-the-first-six-months-of-the-year-in-finland; Bundesverband der DeutschenHeizungsindustrie, “Heizungsindustrie: Solider Markt in Dynamischem Umfeld,” August 12, 2022, https://www.bdh-industrie.de/presse/pressemeldungen/artikel/heizungsindustrie-solider-markt-in-dynamischem-umfeld; Norsk Varmepumpeforening, “Boligeiere har skjønt det- når kommer bedriftene? Varmepumpeforeningen,” 2022, https://www.novap.no/artikler/boligeiere-vil-spare-strom-hvor-blir-det-av-bedriftene.122
  123. Air Conditioning, Heating & Refrigeration Institute, “AHRI Releases June 2022 U.S. Heating and Cooling Equipment Shipment Data,” August 12, 2022, https://www.ahrinet.org/sites/default/files/2022-09/June2022StatisticalRelease.pdf.123
  124. IEA, op. cit. note 21; T. Nowak, “LinkedIn Post on Heat Pump Manufacturer Announcements,” 2022, https://www.linkedin.com/posts/thomasnowakeu_conversation-activity-6970985100586950657-VNc1.124
  125. IEA, op. cit. note 21. 125
  126. IEA, op. cit. note 1.126
  127. C. Delmastro, IEA, personal communication with REN21, October 25, 2022.127
  128. European Commission, “Innovative Waste Heat Recovery Experiment in Sweden,” https://cordis.europa.eu/article/id/436169-innovative-waste-heat-recovery-experiment-in-sweden, accessed November 20, 2022; Delmastro, op. cit. note 127; J. Yoon, OECD, personal communication with REN21, November 15, 2022.128
  129. T. Gualtieri and K. Pohjanpalo, “How Cold Seawater Can Heat Helsinki's Homes,” Bloomberg, October 18, 2022, https://www.bloomberg.com/news/articles/2022-10-18/helsinki-utility-finds-a-surprising-heat-source-icy-seawater.129
  130. Sustainable Energy for All, “Chilling Prospects: Tracking Sustainable Cooling for All,” 2022, https://www.seforall.org/chilling-prospects-2022; IEA, “Space Cooling – Analysis,” 2022, https://www.iea.org/reports/space-cooling.130
  131. IEA, op. cit. note 130.131
  132. Delmastro, op. cit. note 127.132
  133. K. Cromartie, “GEG Successfully Breaks Ground on Geothermal Cooling Project in India,” September 6, 2022, http://gegpower.is/geg-successfully-breaks-ground-on-geothermal-cooling-project-in-india; A. Richter, “US Firm Plans Geothermal Deep Closed-Loop Cooling System in Bali, Indonesia,” ThinkGeoEnergy, March 19, 2022, https://www.thinkgeoenergy.com/us-firm-plans-geothermal-deep-closed-loop-cooling-system-in-bali-indonesia.133

Industry in Focus | Investment in Industry

Investment

Although no comprehensive datasets cover investment in renewables in the industry sector, several examples exist of key industrial investments in solar thermal, geothermal heat and renewable hydrogen technologies.

The chemical manufacturing, mining, and pulp and paper industries, in particular, have invested in solar industrial heat. 39 Projects over the past decade included a solar-powered steam boiler for chemical evaporation and distillation in Tianjin, China; a solar thermal project to dry pigments in Vellore, India; and the use of a solar thermal collector to heat water for cleaning processes in Maharashtra, India. 40 In the mining industry, the Hellenic Copper Mine in Cyprus invested in a solar thermal system to heat a process medium, and a mine in Durango, Mexico invested in a system to heat make-up water. 41 In Kingsey Falls, Canada, a concentrating solar power plant was built to provide hot water for industrial processes in the pulp and paper industry. 42

In Germany, recent investments have supported the expansion of geothermal heat for paper drying in the pulp and paper industry, with support from the EU and the state of North Rhine Westphalia. 43 In New Zealand, an AUD 15 million (USD 10.2 million) investment, funded in part by the Government Investment in Decarbonising Industry Fund, aims to establish the world's first tissue machine running a fully geothermal steam drying process. 44

Eco-industrial parks are becoming more attractive for investors as they offer better cost competitiveness and risk resiliency.

Since 2020, a surge of announcements have been made reporting investment in net zero technologies in the steel industry, some of which include the use of renewables. 45 Investing in decarbonised steel neither lowers costs nor increases product quality, so the primary motivation often is the opportunity to capture incipient markets for “green steel” and to avoid stranded assets in anticipation of more stringent climate policies. 46 In 2021, the Swedish company H2 Green Steel allocated an initial USD 3 billion for a plant that will use renewable hydrogen for steel production starting in 2024. 47 In addition, the new Financing Steel Decarbonization instrument aims to mobilise private finance for low-carbon technologies to decarbonise steel, including through renewables and renewable hydrogen. 48

Although many industries, such as the pulp and paper and cement industries, use biomass to generate heat, few specific data are available on industrial investments in biomass projects. 49

Image
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  2. International Energy Agency (IEA), World Energy Statistics Database, 2022, www.iea.org/statistics, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).2
  3. Ibid.3
  4. Ibid.4
  5. IEA, “Industry – Analysis,” September 2022, https://www.iea.org/reports/industry. 5
  6. Ibid.6
  7. IEA, op. cit. note 2. Figure 7 from idem.7
  8. IEA, op. cit. note 2. 8
  9. International Renewable Energy Agency (IRENA), “Bioenergy for the Energy Transition: Ensuring Sustainability and Overcoming Barriers,” 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Aug/IRENA_Bioenergy_for_the_transition_2022.pdf; IEA, “Pulp and Paper,” September 2022, https://www.iea.org/reports/pulp-and-paper.9
  10. IEA, “World Energy Outlook 2022,” 2022, https://iea.blob.core.windows.net/assets/830fe099-5530-48f2-a7c1-11f35d510983/WorldEnergyOutlook2022.pdf.10
  11. Vienna Energy Forum, “Summary of the Vienna Energy Forum 2021: 5-7 July,” 2021, https://www.viennaenergyforum.org/wp-content/uploads/2021/08/Report.pdf; World Economic Forum, “The Net-Zero Industry Tracker: An Interactive Guide for Executives,” July 28, 2022, https://www.weforum.org/reports/the-net-zero-industry-tracker.11
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  57. United Nations Industrial Development Organization (UNIDO), Alliance for Rural Electrification and Investment and Technology Promotion Office, “Decentralised Renewable Energy Solutions for Inclusive and Sustainable Mining. Decarbonising the Mines and Powering Up the Communities,” December 2021, https://itpo-germany.org/PDF/DRE-for-Inclusive-Sustainable-Mining_Web-Publication.pdf.57
  58. Global Eco-Industrial Parks Programme (GEIPP), “Business Opportunities. Resource Efficient and Cleaner Production (RECP),” May 2021, https://open.unido.org/api/documents/22033480/download/GEIPP-Factsheet%20IPs%204%20Final.pdf.58
  59. World Economic Forum, “Underlining the Need for an Integrated Approach to Establish a Net Zero Cluster,” https://initiatives.weforum.org/transitioning-industrial-clusters/about, accessed January 8, 2023; GEIPP, op. cit. note 58; UNIDO Knowledge Hub, “Environment,” https://hub.unido.org/section/environment, accessed January 8, 2023.59
  60. Aurora IP, “Socio-Ecological Industrial Parks to Become an Inevitable Trend for Real Estate Developers,” November 30, 2022, https://www.globenewswire.com/news-release/2022/11/30/2564583/0/en/Socio-ecological-industrial-parks-to-become-an-inevitable-trend-for-real-estate-developers.html; Aurora IP, “Aurora Strongly Contributes to the Sustainable Future of Vietnam's Textile Industry with an Eco Industrial Park Orientation,” December 26, 2022, https://www.globenewswire.com/news-release/2022/12/26/2579420/0/en/Aurora-strongly-contributes-to-the-sustainable-future-of-Vietnam-s-textile-industry-with-an-eco-industrial-park-orientation.html; Eco-Industrial Park Vietnam, http://eip-vietnam.org, accessed January 9, 2023; Vietnam Investment Review, “Interest in Eco-Industrial Zones Gather Capital Pace,” January 2, 2022, https://vir.com.vn/interest-in-eco-industrial-zones-gather-capital-pace-90360.html.60
  61. World Economic Forum, “More Industrial Hubs to Accelerate Their Net-Zero Transition,” May 24, 2022, https://www.weforum.org/press/2022/05/more-industrial-hubs-to-accelerate-their-net-zero-transition.61
  62. UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Colombia: Country Level Intervention,” https://open.unido.org/projects/CO/projects/180319, accessed January 9, 2023; UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Indonesia: Country Level Intervention,” https://open.unido.org/projects/ID/projects/190324, accessed January 9, 2023; UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Egypt: Country Level Intervention,” https://open.unido.org/projects/EG/projects/190088, accessed January 9, 2023; UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Peru: Country Level Intervention,” https://open.unido.org/projects/PE/projects/180318, accessed January 9, 2023; UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Ukraine: Country Level Intervention,” https://open.unido.org/projects/UA/projects/180320, accessed January 9, 2023; UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Viet Nam: Country Level Intervention,” https://open.unido.org/projects/VN/projects/180321, accessed January 9, 2023. Snapshot: South Africa based on the following sources: R.M. Andrew and G.P. Peters, “The Global Carbon Project's Fossil CO2 Emissions Dataset,” Zenodo, October 17, 2022, https://doi.org/10.5281/ZENODO.5569234; Mpumalanga Green Cluster Agency, “Mpumalanga Renewable Energy and Electric Mobility Market Intelligence. Opportunity Brief,” 2022, https://mpumalangagreencluster.co.za/wp-content/uploads/2022/09/MPUMALANGA_ENERGY_MIR_22.pdf; Institute for Advanced Sustainability Studies, International Energy Transition GmbH and Council for Scientific and Industrial Research, “From Coal to Renewables in Mpumalanga: Employment Effects, Opportunities for Local Value Creation, Skills Requirements, and Gender-Inclusiveness,” January 1, 2022, https://publications.iass-potsdam.de/rest/items/item_6001449_5/component/file_6001450/content; GreenCape, “Mpumalanga Green Economy Cluster,” September 20, 2020, https://green-cape.co.za/archives/mpumalanga-green-economy-cluster; UKPACT, “Supporting the Establishment of the Mpumalanga Green Cluster Agency to Maximise the Contribution of the Renewable Energy Value Chain to South Africa's Just Transition,” https://www.ukpact.co.uk/greencape-south-africa-project-page, accessed January 6, 2023; C. Volkwyn, “Mpumalanga Mitigating Losses from the Transition Away from Coal,” ESI-Africa, January 31, 2022, https://www.esi-africa.com/industry-sectors/finance-and-policy/mpumalanga-mitigating-losses-from-the-transition-away-from-coal.62
  63. Vienna Energy Forum, op. cit. note 11. Snapshot: Pakistan based on the following sources: United Nations Development Programme Climate Promise, “Pakistan,” November 18, 2022, https://climatepromise.undp.org/what-we-do/where-we-work/pakistan; Trading Economics, “Pakistan – Access to Electricity (% of Population) – 2023 Data 2024 Forecast 1990-2020 Historical,” https://tradingeconomics.com/pakistan/access-to-electricity-percent-of-population-wb-data.html, accessed January 4, 2023; NAMA Facility, “Pakistan – Decarbonising Textile Manufacturing,” https://nama-facility.org/projects/pakistan-decarbonising-textile-manufacturing, accessed January 5, 2023; Delegation of the European Union to Pakistan, “Implementation of Resource and Energy Efficient Technologies (IREET) in the Sugar Sector of Pakistan,” August 26, 2020, https://www.eeas.europa.eu/delegations/pakistan/implementation-resource-and-energy-efficient-technologies-ireet-sugar-sector_en; Global Environment Facility and UNIDO, “Sustainable Energy Initiative for Industries in Pakistan,” 2022, https://www.thegef.org/projects-operations/projects/4753; “UK Announces First Projects for Pakistan's ‘Climate Finance Accelerator' Initiative,” Pakistan Today, February 11, 2022, https://www.pakistantoday.com.pk/2022/11/02/uk-announces-first-projects-for-pakistans-climate-finance-accelerator-initiative.63
  64. Chilean Ministry of Energy, “Ministerio de Energía Lanza Concurso Ponle Energía a Tu Pyme,” August 3, 2021, https://energia.gob.cl/noticias/nacional/ministerio-de-energia-lanza-concurso-ponle-energia-tu-pyme; Les-Aides.Fr, “Climate Action Loan,” https://les-aides.fr/aide/aFCf3w/bpifrance/pret-action-climat.html, accessed February 13, 2023; Ministry of the Economy, Finance and Industrial and Digital Sovereignty of France, “Aides aux entreprises pour favoriser leur transition écologique,” https://www.economie.gouv.fr/cedef/aides-entreprises-transition-ecologique, accessed February 13, 2023.64
  65. IEA, op. it. note 9; IEA, op. cit. note 15; IEA, “Chemicals – Analysis,” September 2022, https://www.iea.org/reports/chemicals; Accenture, “Industrial Clusters. Working Together to Achieve Net Zero,” 2021, https://www.accenture.com/_acnmedia/PDF-147/Accenture-WEF-Industrial-Clusters-Report.pdf. Figure 8 from IEA, op. cit. note 2.65
  66. IEA, op. cit. note 2.66
  67. IEA, “Bioenergy Use by Sector and Share of Modern Bioenergy in Total Final Consumption in the Net Zero Scenario, 2010-2030,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/bioenergy-use-by-sector-and-share-of-modern-bioenergy-in-total-final-consumption-in-the-net-zero-scenario-2010-2030.67
  68. Sappi Global, “Co-creating a Shift from Coal to Renewables at Gratkorn Mill,” https://www.sappi.com/fr/decarbonisation-at-gratkorn-mill-in-austria, accessed February 13, 2023; Sappi Global, “Transitioning to Bioenergy at Kirkniemi Mill,” https://www.sappi.com/fr/transitioning-to-bioenergy-at-kirkniemi-mill, accessed February 13, 2023; Bioenergy International, “Stora Enso to Replace Heavy Fuel Oil at Enocell,” May 1, 2022, https://bioenergyinternational.com/stora-enso-to-replace-heavy-fuel-oil-at-enocell; Metsä Group, “Renewable energy fuels the majority of our mills,” https://www.metsagroup.com/metsafibre/sustainability/sustainability-targets-and-progress/#:~:text=Our%20goal%20is%20, accessed February 13, 2023; Afry, “Shift toward Biomass Based Electricity at Metsä Board Husum, Sweden,” https://afry.com/en/project/shift-toward-biomass-based-electricity-metsa-board-husum-sweden, accessed February 13, 2023.68
  69. S. de Groot et al., “The Growing Competition Between the Bioenergy Industry and the Feed Industry,” Wageningen University & Research, June 29, 2022, https://fefac.eu/wp-content/uploads/2022/07/22_DOC_106.pdf.69
  70. Danone, “Danone Announces Re-Fuel Danone: A Global Energy Excellence Programme to Drive Energy Efficiency, Resilience and Decarbonisation Journey,” November 17, 2022, https://www.danone.com/media/press-releases-list/danone-announces-re-fuel-danone.html; G. Fuh, “Danone Builds Bioenergy Plant to Mitigate Climate Change and Endorse Circularity,” BECIS, June 17, 2022, https://be-cis.com/danone-builds-bioenergy-plant-to-mitigate-climate-change-and-endorse-circularity; J. Hughes, “Unilever and Starbucks Join Biogas Alliance,” World Biogas Association, January 22, 2021, https://www.worldbiogasassociation.org/unilever-and-starbucks-join-biogas-alliance.70
  71. IRENA, op. cit. note 9.71
  72. IRENA, “Innovation Outlook: Renewable Methanol,” January 2021, https://www.irena.org/publications/2021/Jan/Innovation-Outlook-Renewable-Methanol.72
  73. KeepItGreen, “How Manufacturers Are Developing and Using Renewable Energy,” Smart Cities Dive, https://www.smartcitiesdive.com/ex/sustainablecitiescollective/how-manufacturers-are-developing-and-using-renewable-energy/1175001, accessed December 15, 2022. 73
  74. Ibid.74
  75. SHIP Plants Database, “World Map of Solar Thermal Plants,” http://ship-plants.info/solar-thermal-plants-map?industry_sector=4, accessed December 23, 2022; B. Epp, “10 MW Solar Plant Heats Air for Malting Plant in France,” Solar Thermal World, September 28, 2021, https://solarthermalworld.org/news/10-mw-solar-plant-heats-air-malting-plant-france; A. Rosell, “Heat Purchase Agreements on the Rise in Spain,” Solar Thermal World, August 10, 2022, https://solarthermalworld.org/news/heat-purchase-agreements-on-the-rise-in-spain; B. Epp, “Innovation Fund Approves EUR 4.5 Million for Croatian SHIP Plant,” Solar Thermal World, September 16, 2021, https://solarthermalworld.org/news/innovation-fund-approves-eur-45-million-croatian-ship-plant.75
  76. C. Erber, “ClimAccelerator Start-up Naked Energy Taps into Solar Thermal,” ClimAccelerator, June 3, 2022, https://climaccelerator.climate-kic.org/news/solar-thermal-energy-an-industry-with-untapped-potential.76
  77. Planète Énergies, “Using High-Temperature Geothermal Energy to Generate Electricity,” April 28, 2021, https://www.planete-energies.com/en/medias/close/using-high-temperature-geothermal-energy-generate-electricity.77
  78. J. Lund and A. Toth, “Direct Utilization of Geothermal Energy 2020 Worldwide Review,” Geothermics, Vol. 90 (February 1, 2021): 101915, https://doi.org/10.1016/j.geothermics.2020.101915.78
  79. BloombergNEF and WBCSD, op. cit. note 50.79
  80. International Geothermal Association, “Webinar: Scaling-up Geothermal Direct Use for Industrial Applications in Latin America,” August 8, 2021, https://www.lovegeothermal.org/webinar-scaling-up-geothermal-direct-use-for-industrial-applications-in-latin-america; International Geothermal Association, “Call for Geothermal Direct Use Projects in Latin America and Caribbean,” November 22, 2022, https://www.lovegeothermal.org/call-for-geothermal-direct-use-projects-in-latin-america-and-caribbean.80
  81. OMV, “OMV Starts Two Geothermal Projects,” October 3, 2022, https://www.omv.com/en/news/221003-omv-starts-two-geothermal-projects.81
  82. A. Levine et al., “Mining G.O.L.D. (Geothermal Opportunities Leveraged Through Data): Exploring Synergies Between the Geothermal and Mining Industries,” US National Renewable Energy Laboratory, 2022, https://www.nrel.gov/docs/fy22osti/81946.pdf.82
  83. Cornish Lithium Plc, “Direct Lithium Extraction,” https://cornishlithium.com/projects/lithium-in-geothermal-waters/direct-lithium-extraction, accessed December 23, 2022; Jelena Temunovic, “Cornish Lithium Set for a Momentous 2023 Following Significant Progress in 2022,” Cornish Lithium Plc, December 20, 2022, https://cornishlithium.com/company-announcements/cornish-lithium-set-for-a-momentous-2023-following-significant-progress-in-2022.83
  84. IEA, op. cit. note 51; GEA, “Decarbonizing Industry, One Heat Pump Installation at a Time,” September 21, 2022, https://www.gea.com/en/stories/decarbonizing-industry-one-heat-pump-installation.jsp.84
  85. “Smart Integration of HP with Energy Storage and Solar Photo Voltaics,” HPT Magazine, Vol. 40, No. 3 (2022), https://issuu.com/hptmagazine/docs/hpt_magazine_no3_2022; Technavio, “Industrial Heat Pumps Market by End-User, Type and Geography – Forecast and Analysis 2023-2027,” December 2022, https://www.technavio.com/report/industrial-heat-pumps-market-industry-analysis; “Global Industrial Heat Pumps Market 2017-2021: Industry Analysis and Forecasts by Technavio,” July 12, 2017, https://www.businesswire.com/news/home/20170712006252/en/Global-Industrial-Heat-Pumps-Market-2017-2021-Industry-Analysis-and-Forecasts-by-Technavio; IEA, op. cit. note 51. 85
  86. IEA, op. cit. note 51; Technavio, op. cit. note 85. 86
  87. Bronswerk Heat Transfer, “Industry – Pulp & Paper,” https://www.bronswerk.com/industry-pulp-paper, accessed December 21, 2022; IEA, op. cit. note 51. 87
  88. European Heat Pump Association, “PUSH2HEAT: Pushing Forward the Market Potential of Heat Upgrade Technologies,” November 4, 2022, https://www.ehpa.org/press_releases/push2heat-pushing-forward-the-market-potential-of-heat-upgrade-technologies.88
  89. WBCSD, “Industrial Heat Pumps: It's Time to Go Electric,” September 2022, https://www.wbcsd.org/contentwbc/download/14846/211001/1; GEA, op. cit. note 84; Bronswerk Heat Transfer, op. cit. note 87; Technavio, op. cit. note 85; gCaptain, “Climeon Launches New Waste Heat Recovery Technology,” September 13, 2022, https://gcaptain.com/climeon-launches-new-waste-heat-recovery-technology.89
  90. IEA, op. cit. note 15; Vienna Energy Forum, op. cit. note 11.90
  91. European Commission, “State Aid: Commission Approves Up to €5.2 Billion of Public Support by Thirteen Member States for the Second Important Project of Common European Interest in the Hydrogen Value Chain,” September 21, 2022, https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5676; European Commission, “Hydrogen,” https://energy.ec.europa.eu/topics/energy-systems-integration/hydrogen_en, accessed December 13, 2022.91
  92. L. Gómez, “Natural Gas and Renewable Hydrogen in Africa and Cooperation Opportunities with the EU,” Global Forum on Sustainable Energy, https://www.gfse.at/fileadmin/user_upload/gfse_policy_brief_gas_africa_v7_clean.pdf, accessed December 19, 2022; C. Owen-Burge, “Green Hydrogen Could Sustainably Industrialise Africa and Boost GDP by 6 to 12% in Six Key Countries – New Report,” Climate Champions, November 15, 2022, https://climatechampions.unfccc.int/unlocking-africas-green-hydrogen-potential; G. Müller, “Green Hydrogen: The Energy Opportunity for Decarbonization and Developing Countries,” Industrial Analytics Platform, November 2022, https://iap.unido.org/articles/green-hydrogen-energy-opportunity-decarbonization-and-developing-countries.92
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  100. IRENA, “Innovation Outlook: Renewable Ammonia,” 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/May/IRENA_Innovation_Outlook_Ammonia_2022.pdf; World Economic Forum, op. cit. note 11. 100
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  103. Bureau Veritas, “Yara Pre-Certification Announcement,” September 19, 2022, https://www.bureauveritas.com.au/newsroom/yara-pre-certification-announcement.103

Agriculture in Focus | Investment in Agriculture

Investment

In general, data on renewable energy investments in the agriculture sector are limited. This includes not only global investment data, but also local-level data on energy flows across agri-food value chains, as well as granular data on spending for farms and non-farm enterprises. 47

For small and medium-sized actors in agri-food chains, affordability is a significant barrier to the uptake of renewables due to the capital-intensive structure of most renewable energy investments and to the seasonality of farmer incomes. 48 A variety of programmes provide financing for renewable installations in the agriculture sector. 49 In 2022, the impact investment fund Acumen launched the five-year, USD 25 million Powering Livelihoods Using Solar (PEII+) initiative to provide micro-entrepreneurs and smallholder farmers in India and Africa with solar-powered appliances such as mills and irrigation pumps. 50 PEG Africa, a pay-as-you-go operator in Côte d'Ivoire, Ghana, Mali, and Senegal, also offers financing for solar pumps. 51 In Romania, the National Rural Development Programme, launched in 2021, offers funding to support biomass fuels and the use of renewables in agricultural processing. 52

In the United Kingdom, programmes that provide dedicated funding for renewables in agriculture include the Renewable Energy Investment Scheme, the Countryside Productivity Scheme, the Renewable Heat Incentive and the Energy Crops Scheme. 53 In the United States, the Renewable Energy for America Program offers renewable energy grants of between USD 2,500 and
USD 1 million, as well as loans to agricultural producers and rural small businesses for investments in renewables. 54

Farmers and agricultural suppliers are investing in solar thermal and other renewable energy projects, in part to alleviate the effects of rising fossil fuel prices and supply shocks. 55 In Guanajuato, Mexico, a MXN 9.5 million (USD 0.5 million) parabolic trough

Greece revised its grid distribution to allocate up to 30% of its grid availability to net metering for farmers.
Image

solar system began providing steam for food processing in 2021 through an innovative financing model in which the client pays monthly per tonne of steam used, thereby avoiding the upfront cost of the system. 56 In Argentina, where fossil gas prices are highly subsidised, multinational corporations motivated by strict CO2 reduction targets are providing around USD 10 million in financing to support four concentrating solar heat projects, to be used mainly for drying cereals. 57

In Europe, solar technologies supply heat to the agricultural production value chain. In 2021, a EUR 6 million (USD 6.4 million) solar heat plant was inaugurated in France to provide renewable heat for the drying of grains to produce malt. 58 In Croatia, EUR 7.5 million (USD 8 million) was invested in an industrial solar heat system to pre-heat air used for drying malt, with more than half of the funding coming from the European Commission's Innovation Fund. 59 In Spain, solar technology providers offer heat purchase agreements, which the global beer producer Heineken utilised at its site in Seville. 60

Investments in agrivoltaics also have increased, building on demonstration projects started in 2004. 61 In New South Wales, Australia, the Clean Energy Finance Corporation provided AUD 5 million (USD 3.5 million) to finance a 350 megawatt (MW) solar PV park on cattle and sheep grazing land. 62

Investments in geothermal systems have supported diverse applications including greenhouse and soil heating, aquaculture, food drying and milk pasteurisation. 63 In Türkiye, during 2021-2022, USD 10 million was invested in geothermal energy to support a drying facility and soil-less greenhouses in the west, and USD 190,000 was awarded to build geothermal greenhouses in the city of Eskisehir. 64

  1. World Bank, “Agriculture, Forestry, and Fishing, Value Added (% of GDP),” https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS, accessed December 16, 2022.1
  2. International Labour Organisation (ILO), “Employment Rate in Agriculture, World,” Data Finder – World Employment and Social Outlook, https://www.ilo.org/wesodata/?chart=Z2VuZGVyPVsiVG90YWwiXSZ1bml0PSJSYXRlIiZzZWN0b3I9WyJBZ3JpY3VsdHVyZSJdJnllYXJGcm9tPTIwMTAmaW5jb21lPVtdJmluZGljYXRvcj1bImVtcGxveW1lbnREaXN0cmlidXRpb24iXSZzdGF0dXM9W10mcmVnaW9uPVsiV29ybGQiXSZjb3VudHJ5PVtdJndvcmtpbmdQb3ZlcnR5PVtdJnllYXJUbz0yMDIzJnZpZXdGb3JtYXQ9IkNoYXJ0IiZhZ2U9WyJBZ2UxNXBsdXMiXSZsYW5ndWFnZT0iZW4i, accessed December 16, 2022.2
  3. ILO, “Employment Rate in Agriculture, by Region,” Data Finder – World Employment and Social Outlook, https://www.ilo.org/wesodata/chart/J45qDX-tp, accessed December 16, 2022.3
  4. Ibid.4
  5. International Energy Agency (IEA), “World Energy Balances 2020: Extended Energy Balances,” August 2022, https://www.iea.org/data-and-statistics/data-product/world-energy-balances, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).5
  6. Based on IEA data, op. cit. note 5.6
  7. European Commission, Directorate-General for Maritime Affairs and Fisheries, “Energy Efficiency,” https://stecf.jrc.ec.europa.eu/web/ee, accessed December 23, 2022.7
  8. European Commission, Directorate-General for Maritime Affairs and Fisheries, “2022 Annual Economic Report on the EU Fishing Fleet: The Sector Is Affected by High Fuel Prices in the Wake of the War in Ukraine,” October 11, 2022, https://oceans-and-fisheries.ec.europa.eu/news/2022-annual-economic-report-eu-fishing-fleet-sector-affected-high-fuel-prices-wake-war-ukraine-2022-10-11_en.8
  9. Food and Agriculture Organization of the United Nations (FAO), “FAOSTAT,” https://www.fao.org/faostat/en/#data/GN, accessed January 10, 2023.9
  10. Ibid. The dimensionless conversion factors used are: GWP-CH4 = 21 and GWP-N2O = 310 (100-year time horizon global warming potential), from Intergovernmental Panel on Climate Change, “SAR Climate Change 1995: The Science of Climate Change,” 1995, Table 4, https://www.ipcc.ch/report/ar2/wg1.10
  11. Ibid.11
  12. Figure 14 from IEA data, op. cit. note 5.12
  13. Ibid.13
  14. Ibid.14
  15. Ibid.15
  16. Ibid.16
  17. International Renewable Energy Agency (IRENA) and FAO, “Renewable Energy for Agri-Food Systems: Towards the Sustainable Development Goals and the Paris Agreement,” 2021, http://www.fao.org/3/cb7433en/cb7433en.pdf.17
  18. R. Van Anrooy et al., “Review of the Techno-Economic Performance of the Main Global Fishing Fleets,” FAO, 2021, https://www.fao.org/3/cb4900en/cb4900en.pdf. 18
  19. IRENA, “Renewable Energy for Agri-Food Systems: How Cross-Sector Partnerships Are Driving Action and Investments,” November 12, 2022, https://www.irena.org/News/articles/2022/Nov/Renewable-Energy-for-Agri-food-Systems.19
  20. IRENA and FAO, “Renewable Energy and Agri-Food Systems: Advancing Energy and Food Security Towards Sustainable Development Goals,” 2021, http://www.fao.org/3/cb7433en/cb7433en.pdf. 20
  21. Ibid..21
  22. Lighting Global, “Market Research on Productive Use Leveraging Solar Energy (PULSE),” September 23, 2019, https://www.lightingglobal.org/resource/pulse-market-opportunity.22
  23. IRENA, “Accelerating Geothermal Heat Adoption in the Agri-Food Sector,” January 2019, https://www.irena.org/publications/2019/Jan/Accelerating-geothermal-heat-adoption-in-the-agri-food-sector.23
  24. IRENA and FAO, op. cit. note 17.24
  25. European Environmental Bureau, “Beyond Net-Zero Emission in Agriculture: Creating an Enabling Climate Governance for Agriculture,” July 5, 2021, https://eeb.org/library/beyond-net-zero-emission-in-agriculture.25
  26. IRENA and FAO, op. cit. note 17. 26
  27. REN21 Policy Database. See Reference Table R4 in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.27
  28. Mint, “Renewable Energy to Replace Diesel in Agriculture by 2024, Says Govt,” February 12, 2022, https://www.livemint.com/news/india/renewable-energy-to-replace-diesel-in-agriculture-by-2024-says-govt-11644592411948.html.28
  29. REN21 Policy Database, op. cit. note 27. 29
  30. Figure 15 from Ibid.30
  31. Ibid.31
  32. Outlook, “Government Extends PM-KUSUM Scheme Till March 2026 as Covid Affects Implementation,” February 2, 2023, https://www.outlookindia.com/business/government-extends-pm-kusum-scheme-till-march-2026-as-covid-affects-implementation-news-258895; N. Pasupalati et al., “Learnings for Tamil Nadu from Grid-Connected Agricultural Solar Photovoltaic Schemes in India,” World Resources Institute, February 15, 2022, https://www.wri.org/research/learnings-tamil-nadu-grid-connected-agricultural-solar-photovoltaic-schemes-india.32
  33. A. Kumar and D. Mohapatra, “Fuelling India's Future with Bioenergy,” PwC, January 25, 2023, https://www.pwc.in/research-and-insights-hub/fuelling-indias-future-with-bioenergy.html.33
  34. L. Concessao and H. Meenawat, “Distributed Renewable Energy Applications Have a New and Encouraging Framework; Applying It on Ground Is Crucial for Success,” ET EnergyWorld, May 9, 2022, https://energy.economictimes.indiatimes.com/news/renewable/opinion-distributed-renewable-energy-applications-have-a-new-and-encouraging-framework-applying-it-on-ground-is-crucial-for-success/91434372; IRENA and FAO, op. cit. note 20.34
  35. Fraunhofer Institute for Solar Energy Systems (ISE), “Agrivoltaics: Opportunities for Agriculture and the Energy Transition,” April 2022, https://www.ise.fraunhofer.de/content/dam/ise/en/documents/publications/studies/APV-Guideline.pdf; H. Aposporis, “Greece Passes Renewables Law Targeting 15 GW in New Capacity by 2030,” Balkan Green Energy News, June 30, 2022, https://balkangreenenergynews.com/greece-passes-renewables-law-targeting-15-gw-in-new-capacity-by-2030.35
  36. A. Bhambhani, “Turkey Facilitates Solar for Irrigation Systems,” Taiyang News, August 3, 2022, https://taiyangnews.info/markets/turkey-facilitates-solar-for-irrigation-systems.36
  37. Rockefeller Foundation, “REA Launches New Program to Boost GDP, Accelerate Renewable Energy and Unlock Agricultural Productivity in Nigeria,” March 31, 2022, https://www.rockefellerfoundation.org/news/rea-launches-new-program-to-boost-gdp-accelerate-renewable-energy-and-unlock-agricultural-productivity-in-nigeria.37
  38. Fraunhofer ISE, “Agrivoltaics,” https://www.ise.fraunhofer.de/en/key-topics/integrated-photovoltaics/agrivoltaics.html, accessed January 3, 2023. .38
  39. J. Jacobo, “Italy to Allocate US$1.5 Billion for 375MW of Agrivoltaics,” PV Tech, August 29, 2022, https://www.pv-tech.org/italy-to-allocate-us1-5-billion-for-375mw-of-agrivoltaics.39
  40. Italian Ministry for Ecological Transition, “Guidelines for Agrivoltaics,” June 2022, https://www.mase.gov.it/sites/default/files/archivio/allegati/PNRR/linee_guida_impianti_agrivoltaici.pdf; E. Bellini, “France Defines Standards for Agrivoltaics,” pv magazine, April 28, 2022, https://www.pv-magazine.com/2022/04/28/france-defines-standards-for-agrivoltaics; E. Bellini, “Historical Court Ruling for Agrivoltaics in Italy,” pv magazine, June 27, 2022, https://www.pv-magazine.com/2022/06/27/historical-court-ruling-for-agrivoltaics-in-italy.40
  41. A. Fischer, “US Government Allocates $8 Million to Support Agrivoltaics,” pv magazine, December 15, 2022, https://www.pv-magazine.com/2022/12/15/us-government-allocates-8-million-to-support-agrivoltaics.41
  42. Fraunhofer ISE, op. cit. note 38; US National Renewable Energy Laboratory (NREL), “Agrivoltaics,” https://www.nrel.gov/solar/market-research-analysis/agrivoltaics.html, accessed January 3, 2023; NREL, “Benefits of Agrivoltaics Across the Food-Energy-Water Nexus,” September 11, 2019, https://www.nrel.gov/news/program/2019/benefits-of-agrivoltaics-across-the-food-energy-water-nexus.html. 42
  43. Fraunhofer ISE, op. cit. note 35.43
  44. J. Dahm and N. Kurmayer, “Germany to Boost Renewables in Agriculture, Link Moorlands with Solar Panels,” Euractiv, February 11, 2022, https://www.euractiv.com/section/agriculture-food/news/germany-to-boost-renewables-in-agriculture-link-moorlands-with-solar-panels.44
  45. Franhaufer ISE, op. cit. note 35. 45
  46. H. Horton, “Ministers Hope to Ban Solar Projects from Most English Farms,” The Guardian (UK), October 10, 2022, https://www.theguardian.com/environment/2022/oct/10/ministers-hope-to-ban-solar-projects-from-most-english-farms.46
  47. IRENA and FAO, op. cit. note 20.47
  48. Ibid.48
  49. Ibid.49
  50. Acumen, “Acumen Launches a $25 Million Investment Initiative to Power Livelihoods with Clean Energy,” July 12, 2022, https://acumen.org/blog/acumen-launches-a-25-million-investment-initiative-to-power-livelihoods-with-clean-energy.50
  51. F. Agbejule, M. Mattern and J. Mensah, “Savings at the Pump: Financing Solar Irrigation to Support Rural Women,” CGAP, March 22, 2022, https://www.cgap.org/blog/savings-pump-financing-solar-irrigation-to-support-rural-women.51
  52. Interreg Europe, “Romania: New Financing for Renewables in Agriculture,” April 15, 2021, https://projects2014-2020.interregeurope.eu/agrores/news/news-article/11786/romania-new-financing-for-renewables-in-agriculture.52
  53. M. Raji, personal communication with REN21, February 1, 2023.53
  54. US Department of Agriculture, Rural Development, “Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants,” January 5, 2015, https://www.rd.usda.gov/programs-services/energy-programs/rural-energy-america-program-renewable-energy-systems-energy-efficiency-improvement-guaranteed-loans.54
  55. IRENA, op. cit. note 19. 55
  56. A. Rosell, “Zero CAPEX Solar Heat for Mexican Industry,” Solar Thermal World, March 18, 2022, https://solarthermalworld.org/news/zero-capex-solar-heat-for-mexican-industry.56
  57. A. Rosell, “Solar Heat for Multinational Agribusinesses Under Way,” Solar Thermal World, November 10, 2022, https://solarthermalworld.org/news/solar-heat-for-multinational-agribusinesses-under-way. 57
  58. B. Epp, “10 MW Solar Plant Heats Air for Malting Plant in France,” Solar Thermal World, September 28, 2021, https://solarthermalworld.org/news/10-mw-solar-plant-heats-air-malting-plant-france.58
  59. B. Epp, “Innovation Fund Approves EUR 4.5 Million for Croatian SHIP Plant,” Solar Thermal World, September 16, 2021, https://solarthermalworld.org/news/innovation-fund-approves-eur-45-million-croatian-ship-plant.59
  60. A. Rosell, “Heat Purchase Agreements on the Rise in Spain,” Solar Thermal World, August 10, 2022, https://solarthermalworld.org/news/heat-purchase-agreements-on-the-rise-in-spain.60
  61. S. Schindele et al., “Implementation of Agrophotovoltaics: Techno-Economic Analysis of the Price-Performance Ratio and Its Policy Implications,” Applied Energy, Vol. 265, 1 May 2020, p. 114737, https://www.sciencedirect.com/science/article/pii/S030626192030249X.61
  62. Blind Creek Solar Farm, “About Blind Creek Solar Farm,” https://www.blindcreeksolarfarm.com.au/about-blind-creek-solar-farm, accessed February 12, 2023; Clean Energy Finance Corporation, “NSW Regenerative Agriculture Boosted with Solar and Storage,” July 2022, https://www.cefc.com.au/where-we-invest/case-studies/nsw-regenerative-agriculture-boosted-with-solar-and-storage.62
  63. M. Van Nguyen et al., “Uses of Geothermal Energy in Food and Agriculture: Opportunities for Developing Countries,” FAO, January 1, 2014, https://www.fao.org/publications/card/fr/c/045ca001-4849-43b7-8dc6-e99635ddb5ea.63
  64. R. McRae, “$10m Investment in Geothermal Direct Use in Balikesir, Sindirgi, Turkey,” ThinkGeoEnergy, December 8, 2021, https://www.thinkgeoenergy.com/10m-investment-in-geothermal-direct-use-in-balikesir-sindirgi-turkey; C. Cariaga, “Grant Awarded for Geothermal Greenhouse Installation in Eskisehir, Turkiye,” ThinkGeoEnergy, October 14, 2022, https://www.thinkgeoenergy.com/grant-awarded-for-geothermal-greenhouse-installation-in-eskisehir-turkiye.64
  65. US Department of Energy, Office of Scientific and Technical Information, “2013 Market Trends Report,” January 1, 2014, https://www.osti.gov/servlets/purl/1220825. 65
  66. Energy Sector Management Assistance Program (ESMAP), “Off-Grid Solar Market Trends Report 2022: Outlook,” October 17, 2022, https://esmap.org/Off-Grid_Solar_Market_Trends_Report_2022_Outlook.66
  67. IRENA, “Off-Grid Renewable Energy Statistics 2022,” December 2022, https://www.irena.org/Publications/2022/Dec/Off-grid-renewable-energy-statistics-2022.67
  68. Green Climate Fund, “Hydro-Agricultural Development with Smart Agriculture Practices Resilient to Climate Change in Niger,” October 7, 2021, https://www.greenclimate.fund/project/fp176.68
  69. ESMAP, op. cit. note 66; IRENA and FAO, op. cit. note 20. 69
  70. Efficiency for Access, “Solar Appliance Technology Brief: Walk-in Cold Rooms,” July 2021, https://storage.googleapis.com/e4a-website-assets/EforA_Solar_Technology_Brief_WalkInColdRooms_July-2021.pdf; ESMAP, op. cit. note 66. Snapshot: India based on the following sources: B. Moushumi, “Indian Farmers Turn to Solar-Powered Fridges to Reduce Food Waste,” Scroll.in, December 5, 2022, https://scroll.in/article/1038916/indian-farmers-turn-to-solar-powered-fridges-to-reduce-food-waste; “Food Wastage in India: A Concern,” Eastern Mirror, October 25, 2022, https://easternmirrornagaland.com/food-wastage-in-india-a-concern; F. Birol and A. Kant, “India's Clean Energy Transition Is Rapidly Underway, Benefiting the Entire World,” IEA, January 10, 2022, https://www.iea.org/commentaries/india-s-clean-energy-transition-is-rapidly-underway-benefiting-the-entire-world; H. Lalramenga, “Deputy CM Hmalaknain Khawzawlah Solar Cold Storage Bun Dt. 21.12.2021,” DC Khawzawl, December 22, 2021, https://dckhawzawl.mizoram.gov.in/post/deputy-cm-hmalaknain-khawzawlah-solar-cold-storage-bun.70
  71. ESMAP, op. cit. note 66.71
  72. Based on IEA data, op. cit. note 5.72
  73. Fraunhofer ISE, op. cit. note 35.73
  74. Fraunhofer ISE, op. cit. note 38.74
  75. Fraunhofer ISE, op. cit. note 35.75
  76. FAO, “The State of World Fisheries and Aquaculture 2022. Towards Blue Transformation,” 2022, http://www.fao.org/3/cc0461en/cc0461en.pdf. 76
  77. CLIENT II, “SHRIMPS – Solar-Aquaculture Habitats as Resource-Efficient and Integrated Multilayer Production Systems,” https://www.bmbf-client.de/en/projects/shrimps, accessed January 4, 2023.77
  78. Ibid.78
  79. B. Santos, “Floating Solar Tech for Aquaculture,” pv magazine, January 4, 2023, https://www.pv-magazine.com/2023/01/04/floating-solar-tech-for-aquaculture.79
  80. IRENA, “Accelerating Geothermal Heat Adoption in the Agri-Food Sector,” January 2019, https://www.irena.org/publications/2019/Jan/Accelerating-geothermal-heat-adoption-in-the-agri-food-sector.80
  81. Ibid. 81
  82. Ibid; FAO, op. cit. note 76.82
  83. IRENA, op. cit. note 80.83
  84. IRENA and FAO, op. cit. note 20.84
  85. Ibid.85
  86. FAO, op. cit. note 76.86
  87. Based on IEA data, op. cit. note 5.87
  88. Ibid.88
  89. IRENA and FAO, op. cit. note 20.89
  90. Ibid.90
  91. Ibid.91
  92. Ibid.92
  93. Green Climate Fund, “Climate Resilient Fishery Initiative for Livelihood Improvement in the Gambia (PROREFISH Gambia),” July 20, 2022, https://www.greenclimate.fund/project/fp188.93
  94. R. Van Anrooy et al., op. cit. note 18.94
  95. C. Carletto, “Better Data, Higher Impact: Improving Agricultural Data Systems for Societal Change,” European Review of Agricultural Economics, Vol. 48, No. 4, September 2021, 719-740, https://doi.org/10.1093/erae/jbab030. 95
  96. D. Mohapatra et al., “Decentralised Renewable Energy Innovations to Boost Agri-Sector Productivity & Address Global Food System Challenges,” Alliance for Rural Electrification, January 2021, https://www.ruralelec.org/publications/decentralised-renewable-energy-innovations-boost-agri-sector-productivity-address.96

Transport in Focus | Investment in Transport

Investment

Global investment in biofuels i reached an all-time high in 2021 then fell slightly in 2022, to USD 5.84 billion. 57 Biofuel investment has been hampered by rising prices and declining demand, due in part to disruptions related to the COVID-19 pandemic, rising energy efficiency, surging electric vehicle sales, behavioural change and suspensions in biofuel mandates. 58 However, investor interest has increased in Brazil, a leading biofuel-producing country, due to higher ethanol prices and the possibility of merging or acquiring struggling smaller companies to harness the country's idle capacity. 59

A growing number of refineries that produce renewable diesel, also known as hydrotreated vegetable oil or HVO, received investment in recent years, particularly in the US states of California and Oregon. 60 In 2022, Phillips 66 announced a USD 850 million investment to convert its crude oil refinery in Rodeo, California to one that processes renewable diesel, biofuels and SAF. 61 Two state-level policies – the California Low Carbon Fuel Standard and Oregon's Clean Fuel Program – have fuelled this US growth. 62 Also in 2022, Brazil Biofuels announced a BRL 2.2 billion (USD 410 million) investment in a biorefinery that will use palm oil harvested in the Amazon region ii to produce HVO, with support from the Banco Nacional de Desenbvolvimento Economico e Social (BNDES). 63

Global investment in electric vehicles and related charging infrastructure surged 53.6% in 2022 to reach USD 466.1 billion. The largest investment was in China, totaling USD 234 billion, followed by the United States with USD 57 billion. 64 (See Figure 12) This rapid growth reflects a mix of policy support for electrification in core auto markets, improvements in battery technologies, the expansion of charging infrastructure and new compelling vehicle models from automakers. 65 The investment surge occurred despite a sharp increase in the prices of electric vehicle batteries due to higher raw material and component costs and soaring inflation. 66

Investment in SAF, although in the early stages, also attracted growing attention, driven by net zero commitments and related policy support for the aviation industry. Neste, one of the world's largest SAF producers, issued its first seven-year green bond in 2021, allocating EUR 16 million (USD 17 million) for a refinery in Rotterdam (Netherlands) and EUR 278 million (USD 297 million) for one in Singapore. 67 In 2022, Saudi Arabia's Alfanar Group announced that it would invest USD 1.3 billion in a project in Teesside (United Kingdom) that would eventually produce 180 million litres of SAF. 68 Airlines also are investing in more novel technologies and feedstocks iii , either on their own or as a part of an airline alliance. 69

Finance for electric aircraft is also on the rise, although it is comparatively nascent. In 2021, United Airlines announced the purchase of 100 electric planes. 70 In 2022, Air Canada announced the purchase of 30 electric aircraft, plus a USD 5 million equity stake in the manufacturer Heart Aerospace. 71

In the rail sector, investments in renewables have focused mainly on electric-based systems. In 2022, the Austrian Federal Railway (ÖBB) announced a EUR 1 billion (USD 1.07 billion) investment in hydropower, wind power and solar PV projects to supplement its existing renewable energy systems. 72

Although some efforts are under way to push renewable options in the shipping sector (for example, wind-powered vessels), investment has been hampered by the lock-in of investment in existing, fossil fuel-based shipping fleets. 73

FIGURE 12.

Investment in Electric Vehicles by Major Country, 2018-2022

 FIGURE 12.

Source: See endnote 64 for this module.

Investment in biofuels fell slightly in 2022 to USD 5.84 billion, after reaching an all-time high in 2021.

Footnotes

i Data are from BloombergNEF and include all biofuel projects (bioethanol, biodiesel, renewable diesel and sustainable aviation fuel) with an annual production capacity of 1 million litres or more.

ii This project conforms with the Brazilian law stating that palm oil can only be cultivated in areas that were deforested before 2007; however, environmentalists have criticised the investment and describe oil palm as a proven predatory crop that leads to enormous biodiversity loss. See endnote 63 for this module.

iii Gasification Fischer-Tropsch and other processes that use biomass, landfill waste and ethanol-to-jet are emerging as alternatives.

  1. Global GDP from transport calculated by applying transport share of GDP to global GDP, from World Bank, “GDP (current US$),” https://data.worldbank.org/indicator/NY.GDP.MKTP.CD, accessed January 12, 2023. Transport share of GDP estimated using a sample of 94 countries, based on the following sources: Trading Economics, “GDP from Transport,” https://tradingeconomics.com/country-list/gdp-from-transport, and “GDP,” https://tradingeconomics.com/country-list/gdp, both accessed January 12, 2023; Government of Canada, “Transportation Enabling Economy Growth,” https://tc.canada.ca/en/corporate-services/transparency/corporate-management-reporting/transportation-canada-annual-reports/transportation-enabling-economy-growth, accessed January 12, 2023; Gambia Data Portal, “Gross Domestic Product of Gambia,” https://gambia.opendataforafrica.org/lmljwvg/gross-domestic-product-of-gambia?indicator=1000140-transport-storage-communication, accessed January 12, 2023. As the value for Spain included hostelry, to estimate it more accurately the figure corresponding to tourism activity during 2021 was discounted, based on INE, “Tourism Satellite Account of Spain. Year 2021,” https://www.ine.es/dyngs/INEbase/en/operacion.htm?c=Estadistica_C&cid=1254736169169&menu=ultiDatos&idp=1254735576863, accessed January 12, 2023. For Jamaica and Namibia, it was assumed that the values on Trading Economics were provided in local currency rather than US dollars. Global transport workforce calculated by applying transport share of workforce to global workforce, from World Bank, “Labor Force, Total,” https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?end=2021&start=1990&view=chart, accessed January 12, 2023. Transport share of workforce estimated based on a sample of 53 countries, from International Labour Organization, “Indicator Catalogue,” https://ilostat.ilo.org/data, accessed January 12, 2023. 1
  2. International Energy Agency (IEA), “World Energy Outlook 2022,” October 2022, https://iea.blob.core.windows.net/assets/830fe099-5530-48f2-a7c1-11f35d510983/WorldEnergyOutlook2022.pdf; growth estimates based on datasets in IEA, “World Energy Balances Highlights,” October 2022, https://www.iea.org/data-and-statistics/data-product/world-energy-balances-highlights#data-sets, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).2
  3. IEA, “World Energy Balances,” op. cit. note 2. 3
  4. Ibid.4
  5. Ibid.5
  6. Ibid.6
  7. Ibid. 7
  8. Estimates based on IEA, “Energy Consumption in Transport by Fuel in the Net Zero Scenario, 2000-2030,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/energy-consumption-in-transport-by-fuel-in-the-net-zero-scenario-2000-2030, and on REN21 Policy Database. See Reference Table R3a in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.8
  9. Estimates based on IEA, op. cit. note 8, and on REN21 Policy Database, op. cit. note 8. 9
  10. REN21 estimates the drop in biofuel demand at 4.4%, based on datasets in IEA, “World Energy Balances,” op. cit. note 2.10
  11. IEA, op. cit. note 8.11
  12. H. Ritchie and M. Roser, “Emissions by Sector,” Our World in Data, https://ourworldindata.org/emissions-by-sector, accessed January 3, 2023.12
  13. IEA, “Transport,” September 2022, https://www.iea.org/reports/transport.13
  14. Ibid.14
  15. IEA, “Global CO2 Emissions from Transport by Sub-sector in the Net Zero Scenario, 2000-2030,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/global-co2-emissions-from-transport-by-sub-sector-in-the-net-zero-scenario-2000-2030. Total value of CO2 emissions for 2021 from European Commission Joint Research Centre, “Global CO2 Emissions Rebound in 2021 After Temporary Reduction During COVID Lockdown,” October 14, 2022, https://joint-research-centre.ec.europa.eu/jrc-news/global-co2-emissions-rebound-2021-after-temporary-reduction-during-covid19-lockdown-2022-10-14_en.15
  16. IEA, op. cit. note 15.16
  17. Ibid.17
  18. IEA, “Energy Efficiency Indicators Data Explorer,” December 2, 2022, https://www.iea.org/data-and-statistics/data-tools/energy-efficiency-indicators-data-explorer.18
  19. Ibid.19
  20. Transformative Urban Mobility Initiative (TUMI), “Sustainable Urban Transport: Avoid Shift Improve (ASI),” March 2019, https://www.transformative-mobility.org/assets/publications/ASI_TUMI_SUTP_iNUA_No-9_April-2019.pdf. 20
  21. Ibid.21
  22. Ibid. 22
  23. IEA, “Global EV Outlook 2022,” May 2022, https://www.iea.org/reports/global-ev-outlook-2022.23
  24. M. Vitorino, “Portugal Sets New Goals for Renewable Energy Consumption,” Lexology, December 12, 2022, https://www.lexology.com/library/detail.aspx?g=fe7c9067-8562-475a-bcb9-399b9a6fe73c; Dutch Emissions Authority, “Renewable Energy for Transport 2022-2030,” https://www.emissionsauthority.nl/topics/general---renewable-energy-for-transport, accessed February 7, 2023.24
  25. European Renewable Ethanol, “Overview of Biofuels Policies and Markets Across the EU,” October 2022, https://www.epure.org/wp-content/uploads/2022/10/221011-DEF-REP-Overview-of-biofuels-policies-and-markets-across-the-EU-October-2022.pdf.25
  26. TUMI, “Curitiba,” April 6, 2022, https://www.transformative-mobility.org/campaigns/curitiba.26
  27. King County, “Transitioning to a Zero-Emissions Fleet,” https://kingcounty.gov/depts/transportation/metro/programs-projects/innovation-technology/zero-emission-fleet.aspx, accessed February 14, 2023.27
  28. C. Isidore, “Why US Gas Prices Are at a Record, and Why They'll Stay High for a Long Time,” CNN Business, June 6, 2022, https://www.cnn.com/2022/06/06/energy/record-gas-prices-causes/index.html; IEA, “World Energy Outlook 2022,” op. cit. note 2.28
  29. Figure 10 from REN21 Policy Database, op. cit. note 8. 29
  30. “Cabinet Amends Biofuels Policy, Advances Ethanol Blending Target to 2025-26,” Economic Times, May 18, 2022, https://economictimes.indiatimes.com/industry/renewables/cabinet-amends-biofuels-policy-advances-ethanol-blending-target-to-2025-26/articleshow/91637676.cms.30
  31. A. Parmar, “Viewpoint: Asian Biofuels Breaking Away from Europe,” Argus Media, December 15, 2022, https://www.argusmedia.com/en/news/2400935-viewpoint-asian-biofuels-breaking-away-from-europe; S. Kelly and J. Renshaw, “U.S. EPA Proposes Revamp of Biofuel Program to Include Electric Vehicles,” Reuters, December 1, 2022, https://www.reuters.com/business/energy/us-epa-proposes-higher-biofuel-blending-volumes-ev-program-2022-12-01.31
  32. REN21 Policy Database, op. cit. note 8. 32
  33. “Brazil to Keep 10% Biodiesel Mandate Until March – CNPE,” Reuters, November 22, 2022, https://www.reuters.com/business/energy/brazil-keep-10-biodiesel-mandate-until-march-cnpe-2022-11-21.33
  34. Figure 11 from REN21 Policy Database. See Reference Table R3b in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.34
  35. J. Amir, “Thai Government Announces EV Roadmap,” S&P Global, March 16, 2020, https://www.spglobal.com/mobility/en/research-analysis/thai-government-announces-ev-roadmap.html; 35
  36. Baker Mckenzie, “Philippines: The Electric Vehicle Industry Development Act (EVIDA), Republic Act No. 11697, Lapses into Law,” May 10, 2022, https://insightplus.bakermckenzie.com/bm/tax/philippines-the-electric-vehicle-industry-development-act-evida-republic-act-no-11697-lapses-into-law.36
  37. Kelly and Renshaw, op. cit. note 31.37
  38. REN21 Policy Database, op. cit. note 34.38
  39. “Germany Includes Plug-in Hybrids to Achieve Target of 15 Million EVs by 2030,” Power Technology, February 25, 2022, https://www.power-technology.com/comment/germany-target-15-million-evs. 39
  40. The White House, “FACT SHEET: Biden-Harris Administration Proposes New Standards for National Electric Vehicle Charging Network,” June 9, 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/09/fact-sheet-biden-harris-administration-proposes-new-standards-for-national-electric-vehicle-charging-network. 40
  41. G.Jacquot, “L'obligation de pose de panneaux photovoltaïques sur les grands parkings extérieurs adoptée au Sénat,” Public Senat, November 4, 2022, https://www.publicsenat.fr/article/parlementaire/l-obligation-de-pose-de-panneaux-photovoltaiques-sur-les-grands-parkingshttps://www.publicsenat.fr/article/parlementaire/l-obligation-de-pose-de-panneaux-photovoltaiques-sur-les-grands-parkings.41
  42. Ministry of New & Renewable Energy of India, “India National Hydrogen Mission,” March 2022, https://static.pib.gov.in/WriteReadData/specificdocs/documents/2023/jan/doc2023110150801.pdf. 42
  43. REN21 Policy Database. See Reference Table R3b in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.43
  44. Ibid.44
  45. “EU Parliament Votes to Ban Sale of Petrol Car by 2035,” Le Monde, February 14, 2023, https://www.lemonde.fr/en/european-union/article/2023/02/14/eu-parliament-votes-to-ban-petrol-car-sales-by-2035_6015745_156.html.45
  46. Transport Environment, “Kerosene Taxation: How to Implement It in Europe Today,” June 2020, https://www.transportenvironment.org/wp-content/uploads/2021/07/2020_06_Kerosene_taxation_briefing.pdf.46
  47. International Air Transport Association, “Fact Sheet: EU and US Policy Approaches to Advance SAF Production,” 2021, https://www.iata.org/contentassets/d13875e9ed784f75bac90f000760e998/fact-sheet---us-and-eu-saf-policies.pdf.47
  48. European Council, “ETS Aviation: Council and Parliament Strike Provisional Deal to Reduce Flight Emissions,” December 7, 2022, https://www.consilium.europa.eu/en/press/press-releases/2022/12/07/ets-aviation-council-and-parliament-strike-provisional-deal-to-reduce-flight-emissions.48
  49. D. Shepardson, “U.S. Outlines Roadmap to Boost Sustainable Aviation Fuel,” Reuters, September 23, 2022, https://www.reuters.com/business/energy/us-outlines-roadmap-boost-sustainable-aviation-fuel-use-2022-09-23.49
  50. US Department of Energy, “SAF Grand Challenge Roadmap – Flight Plan for Sustainable Aviation Fuel,” September 2022, https://www.energy.gov/sites/default/files/2022-09/beto-saf-gc-roadmap-report-sept-2022.pdf.50
  51. D. Larsen, “Denmark Aims for Fossil-Fuel Free Inland Flights by 2030,” Electrive, January 4, 2022, https://www.electrive.com/2022/01/04/denmark-aims-for-fossil-fuel-free-inland-flights-by-2030.51
  52. L. Limb, “It's Official: France Bans Short Haul Domestic Flights in Favour of Train Travel,” euronews, December 5, 2022, https://www.euronews.com/green/2022/12/02/is-france-banning-private-jets-everything-we-know-from-a-week-of-green-transport-proposals.52
  53. SNCF, “Un contrat record pour faire rouler vos trains grâce au photovoltaïque,” https://www.sncf.com/fr/groupe/fournisseurs/contrat-ppa-photovoltaique-sncf-energie-reden, accessed December 18, 2022.53
  54. Ibid.54
  55. P. Gururaja, “A Big First Step Toward Green Shipping Corridors,” ClimateWorks Foundation, February 2, 2022, https://www.climateworks.org/blog/green-shipping-corridors; Mission Innovation, “Green Shipping Corridor Route Tracker,” 2023, http://mission-innovation.net/missions/shipping/green-shipping-corridors/route-tracker; C40 Cities, “Maritime and Port Authority of Singapore, Port of Los Angeles, Port of Long Beach and C40 Cities to Establish a Green and Digital Shipping Corridor,” November 7, 2022, https://www.c40.org/news/maritime-and-port-authority-of-singapore-port-of-los-angeles-port-of-long-beach-and-c40-cities-to-establish-a-green-and-digital-shipping-corridor. Snapshot: US-China based on C40 Cities, “Port of Los Angeles, Port of Shanghai, and C40 Cities Announce Partnership to Create World's First Transpacific Green Shipping Corridor Between Ports in the United States and China,” January 28, 2022, https://www.c40.org/news/la-shanghai-green-shipping-corridor. 55
  56. UN Climate Change Conference UK 2021, “Clydebank Declaration for Green Shipping Corridors,” November 10, 2021, https://ukcop26.org/cop-26-clydebank-declaration-for-green-shipping-corridors.56
  57. BloombergNEF, “Energy Transition Investment Trends 2023,” January 2023, https://about.bnef.com/energy-transition-investment.57
  58. IEA, “Biofuels – Renewables 2021 – Analysis,” 2021, https://www.iea.org/reports/renewables-2021/biofuels?mode=transport&region=World&publication=2021&flow=Consumption&product=Ethanol. See also Reference Table R3a in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.58
  59. M. Teixeira, “High Energy Prices Fuel Investor Interest in Brazil's Idle Biofuel Capacity,” Reuters, June 8, 2022, https://www.reuters.com/markets/commodities/high-energy-prices-fuel-investor-interest-brazils-idle-biofuel-capacity-2022-06-08.59
  60. S&P Global Commodity Insights, “Top Biofuels Market Trends in 2022 and Beyond,” 2022, https://www.spglobal.com/commodityinsights/en/ci/info/0322/top-biofuels-market-trends-2022-beyond.html; glpautogas.info, “HVO 100 Stations in USA, Map and Updated Listing,” https://www.glpautogas.info/en/hvo100-stations-united-states.html, accessed January 31, 2023.60
  61. Phillips 66, “Phillips 66 Makes Final Investment Decision to Convert San Francisco Refinery to a Renewable Fuels Facility,” May 11, 2022, https://investor.phillips66.com/financial-information/news-releases/news-release-details/2022/Phillips-66-Makes-Final-Investment-Decision-to-Convert-San-Francisco-Refinery-to-a-Renewable-Fuels-Facility.61
  62. S&P Global Commodity Insights, op. cit. note 60; glpautogas.info, op. cit. note 60.62
  63. BloombergNEF, op. cit. note 57; M. Prestes, “Palm Oil for Biodiesel in the Amazon: Sustainable Fuel or Deforestation Risk?” Global Issues, May 4, 2022, https://www.globalissues.org/news/2022/04/04/30517. 63
  64. Figure 12 from BloombergNEF, op. cit. note 57.64
  65. BloombergNEF, “Electric Vehicle Outlook 2022,” 2022, https://about.bnef.com/electric-vehicle-outlook.65
  66. BloombergNEF, “Lithium-Ion Battery Pack Prices Rise for First Time to an Average of $151/kWh,” December 6, 2022, https://about.bnef.com/blog/lithium-ion-battery-pack-prices-rise-for-first-time-to-an-average-of-151-kwh.66
  67. Neste, “Green Finance Report 2021,” 2022, https://www.neste.com/investors.67
  68. P. Tisheva, “Saudi Arabia's Alfanar to Invest GBP 1bn in UK SAF Project,” Renewables Now, March 17, 2022, https://renewablesnow.com/news/saudi-arabias-alfanar-to-invest-gbp-1bn-in-uk-saf-project-777358.68
  69. S&P Global Commodity Insights, op. cit. note 60.69
  70. I. Thomas, “United Airlines Is Aiming to Have Electric Planes Flying by 2030,” CNBC, October 10, 2022, https://www.cnbc.com/2022/10/06/united-airlines-is-aiming-to-have-electric-planes-flying-by-2030.html.70
  71. “Air Canada to Buy 30 Electric Planes from Heart Aerospace,” Reuters, September 15, 2022, https://www.reuters.com/business/aerospace-defense/air-canada-buy-30-electric-planes-heart-aerospace-2022-09-15; W. Bellamy III, “Air Canada Signs Purchase Agreement for Heart's Updated ES-30 Electric Aircraft,” Aviation Today, September 20, 2022, https://www.aviationtoday.com/2022/09/20/air-canada-signs-purchase-agreement-hearts-updated-es-30-electric-aircraft.71
  72. D. Burroughs, “ÖBB to Invest €١bn in Renewable Energy by ٢٠٣٠,” International Railway Journal, May 13, 2022, https://www.railjournal.com/financial/obb-to-invest-e1bn-in-renewable-energy-by-2030.72
  73. International Renewable Energy Agency, “Technology Brief: Renewable Energy Options for Shipping,” January 2015, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2015/IRENA_Tech_Brief_RE_for-Shipping_2015.pdf.73
  74. International Transport Forum, “ITF Transport Outlook 2021,” May 17, https://www.oecd-ilibrary.org/transport/itf-transport-outlook-2021_16826a30-en. 74
  75. Ibid.75
  76. Ibid.76
  77. Based on recover scenario in Ibid.77
  78. Estimates based on datasets in IEA, “World Energy Balances,” op. cit. note 2.78
  79. Ibid.79
  80. Ibid.80
  81. Ibid. Growth rates calculated using averages pre-COVID-19. 81
  82. Ibid.82
  83. Figure 13 from Ibid. Growth rates calculated using averages pre-COVID-19.83
  84. Ibid.84
  85. Ibid.85
  86. Ibid.86
  87. Road transport's share of emissions based on IEA, “Energy Statistics Data Browser,” https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser?country=WORLD&fuel=Energy%20supply&indicator=TESbySource, August 18, 2022; global emissions from M. Crippa et al., “CO2 emissions of all world countries – 2022 Report,” European Commission Joint Research Centre, 2022, https://publications.jrc.ec.europa.eu/repository/handle/JRC130363; shares of light vehicles based on 2019 values from IEA, op. cit. note 13, and on International Council for Clean Transportation, “Light Vehicles,” https://theicct.org/sector/light-vehicles, accessed December 15, 2022.87
  88. Estimates based on International Organization of Motor Vehicle Manufacturers (OICA), “Global Sales Statistics 2019-2021,” https://www.oica.net/category/sales-statistics, accessed December 16, 2022, and on IEA, “As the Covid-19 Crisis Hammers the Auto Industry, Electric Cars Remain a Bright Spot,” May 18, 2020, https://www.iea.org/commentaries/as-the-covid-19-crisis-hammers-the-auto-industry-electric-cars-remain-a-bright-spot. Europe includes the Russian Federation and Türkiye.88
  89. IEA, op. cit. note 88. 89
  90. Ibid. 90
  91. European Automobile Manufacturers' Association (ACEA), “Vehicles in Use Europe 2022,” January 2022, https://www.acea.auto/files/ACEA-report-vehicles-in-use-europe-2022.pdf; Wikipedia, “List of Countries by Vehicles per Capita,” https://en.wikipedia.org/wiki/List_of_countries_by_vehicles_per_capita, accessed January 10, 2022.91
  92. REN21 Policy Database, op. cit. note 8. 92
  93. Estimates based on Ibid. and on IEA, op. cit. note 8; IEA, “Biofuels,” September 2022, https://www.iea.org/reports/biofuels. 93
  94. Snapshot: Spain based on the following sources: Energías Renovables, “Bioenergía – Una veintena de autobuses urbanos de Madrid abandonan el gas natural y lo sustituyen por biometano de vertedero,” September 8, 2022, https://www.energias-renovables.com/bioenergia/los-autobuses-urbanos-de-madrid-abandonan-el-20220908; Foro de Empresas por Madrid, “Los autobuses madrileños se moverán con biometano,” August 9, 2022, https://www.forodeempresaspormadrid.es/actualidad/foro/los-autobuses-madrilenos-se-moveran-con-biometano; NGV Journal, “Madrid Expands PTV Biogas Plant, Will Be Able to Supply 500 EMT Buses,” April 21, 2022, http://www.ngvjournal.com/s1-news/c4-stations/madrid-expands-valdemingomez-biogas-plant-will-be-able-to-supply-500-buses; Ayuntamiento de Madrid, “Madrid utilizará el biometano de Valdemingómez para mover los autobuses de EMT,” July 9, 2022, https://www.madrid.es/portales/munimadrid/es/Inicio/Actualidad/Noticias/Madrid-utilizara-el-biometano-de-Valdemingomez-para-mover-los-autobuses-de-EMT.94
  95. European Commission, “Mobility and Transport, Biofuels,” https://transport.ec.europa.eu/transport-modes/air/environment/biofuels_en, accessed January 9, 2023; G. Squadrin, B. O'Kelly and S. Barthel, “Viewpoint: HVO, SAF Demand to Outstrip Supply in 2022,” Argus Media, December 22, 2021, https://www.argusmedia.com/en/news/2285785-viewpoint-hvo-saf-demand-to-outstrip-supply-in-2022.95
  96. Airbus, “Airbus A330MRTT Completes First 100% SAF Test Flight on Both Engines,” November 18, 2022, https://www.airbus.com/en/newsroom/press-releases/2022-11-airbus-a330mrtt-completes-first-100-saf-test-flight-on-both-engines; Neste, “First Flight in History with 100% Sustainable Aviation Fuel on a Regional Commercial Aircraft,” June 21, 2022, https://www.neste.com/releases-and-news/renewable-solutions/first-flight-history-100-sustainable-aviation-fuel-regional-commercial-aircraft.96
  97. IEA, “World Energy Balances,” op. cit. note 2. 97
  98. Ibid.98
  99. Ibid.99
  100. OICA, op. cit. note 88; IEA, “Electric Vehicles,” September 2022, https://www.iea.org/reports/electric-vehicles; IEA, “Global EV Data Explorer,” May 23, 2022, https://www.iea.org/data-and-statistics/data-tools/global-ev-data-explorer.100
  101. Here “vehicles” refers to automobiles, trucks, vans and buses. Estimated based on IEA, “Global EV Data Explorer,” op. cit. note 100.101
  102. IEA, “Electric Vehicles,” op. cit. note 100.102
  103. Ibid.103
  104. Ibid. 104
  105. IEA, “Global EV Data Explorer,” op. cit. note 100.105
  106. BloombergNEF, “Electric Vehicle Outlook 2022, Executive Summary, Near Term Outlook,” 2022, https://bnef.turtl.co/story/evo-2022/page/3/2. 106
  107. IEA, “Global EV Data Explorer,” op. cit. note 100.107
  108. IEA, op. cit. note 18.108
  109. Ibid. 109
  110. J. Biba, “Will Charging an Electric Car Ever Be Quick and Easy?” Builtin, November 1, 2022, https://builtin.com/transportation-tech/electric-vehicle-charging.110
  111. INES, “ITE INES.2S Mettre du solaire dans votre véhicule (électrique),” September 15, 2022, https://www.ines-solaire.org/news/ite-ines.2s-mettre-du-solaire-dans-votre-vehicule-electrique; E. Bellini “Vehicle-integrated PV for Heavy-duty Trucks,” pv magazine, October 21, 2021, https://www.pv-magazine.com/2021/10/25/vehicle-integrated-pv-for-heavy-duty-trucks.111
  112. International Organization for Standardization, “ISO 15118-20:2022(en) Road vehicles — Vehicle to grid communication interface — Part 20: 2nd generation network layer and application layer requirements,” 2022, https://www.iso.org/obp/ui/#iso:std:iso:15118:-20:ed-1:v1:en; Virta, “Vehicle-to-Grid (V2G): Everything You Need to Know,” https://www.virta.global/vehicle-to-grid-v2g, accessed January 4, 2022.112
  113. IEA, “Fuel Cell Electric Vehicle Stock by Region and by Mode, 2021,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/fuel-cell-electric-vehicle-stock-by-region-and-by-mode-2021. 113
  114. US Department of Energy, “Hydrogen's Role in Transportation,” February 25, 2022, https://www.energy.gov/eere/vehicles/articles/hydrogens-role-transportation.114
  115. IEA, “Hydrogen,” September 2022, https://www.iea.org/reports/hydrogen; Hydrogen Central, “Quantron Hydrogen-Powered Truck Has a Range of 1500 Km,” September 27, 2022, https://hydrogen-central.com/quantron-hydrogen-powered-truck-range-1500-km.115
  116. IEA, “Fuel Cell Electric Vehicle Stock and Hydrogen Refuelling Stations by Region, 2021,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/fuel-cell-electric-vehicle-stock-and-hydrogen-refuelling-stations-by-region-2021.116
  117. IEA, op. cit. note 115.117
  118. Ibid.118
  119. Ibid.119
  120. Business & Human Rights Resource Centre, “Human Rights in the Mineral Supply Chains of Electric Vehicles,” https://www.business-humanrights.org/en/from-us/briefings/transition-minerals-sector-case-studies/human-rights-in-the-mineral-supply-chains-of-electric-vehicles, accessed March 8, 2023. 120
  121. BloombergNEF, op. cit. note 106.121
  122. BloombergNEF, “Electric Vehicle Outlook 2022, Executive Summary, Batteries and Charging Infrastructure,” 2022, https://bnef.turtl.co/story/evo-2022/page/6/2.122
  123. Green Climate Fund, “B.33/11 Launch of the Second Replenishment of the GCF,” August 9, 2022, https://www.greenclimate.fund/decision/b33-11; United Nations Framework Convention on Climate Change, “COP27 Reaches Breakthrough Agreement on New ‘Loss and Damage' Fund for Vulnerable Countries,” November 20, 2022, https://unfccc.int/news/cop27-reaches-breakthrough-agreement-on-new-loss-and-damage-fund-for-vulnerable-countries; Rockefeller Foundation “Global Philanthropies Create New Multilateral Development Banks Challenge Fund to Increase Investment in Developing Countries,” December 10, 2022, https://www.rockefellerfoundation.org/news/global-philanthropies-create-new-multilateral-development-banks-challenge-fund-to-increase-investment-in-developing-countries. 123

Renewable Energy Systems and Infrastructure | Investment

Investment

Investment in energy storage i worldwide reached a record high of USD 15.7 billion in 2022, up 46% from 2021. 67 Corporate funding for energy storage was up 55% from 2021. 68 The leading categories were grid-scale storage and lithium-ion batteries. 69 China and the United States led in energy storage investment, although other markets – such as Australia, Europe, Japan and the Republic of Korea – also gained traction. 70

In China, the release of the 14th Five-Year Plan for the Development of New Energy Storage Technologies in March 2022 called for government and private entities to build additional storage capacity, paving the way for more targeted investment. 71 In the United States, the Bipartisan Infrastructure Law of 2021 strongly supported investment in the battery supply chain, and the Inflation Reduction Act of 2022 led to more than USD 80 billion in new investments ii . 72 Japan allocated JPY 13 billion (USD 100 million) in subsidies for stand-alone battery systems in 2022 and was reforming its regulations for battery energy storage systems in 2023, which will further support investment. 73 In Australia, the government announced funding of USD 118 million in 2022 for eight large-scale battery storage projects. 74 Tenders for energy storage projects in the country were scheduled to begin in 2023, supporting ongoing investment in the technology. 75

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In developing countries, international development banks actively financed several energy storage projects in 2022, often coupled with renewable energy installations. 76 The US International Development Corporation provided a loan of USD 25 million for a solar PV plus storage project in Malawi. 77 The Inter-American Development Bank and the Norwegian Agency for Development Cooperation invested USD 83.3 million in eight solar PV projects in Guyana with co-located energy storage. 78

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Although no global datasets are available for investment in pumped hydropower storage, more than 100 projects were in the pipeline worldwide as of 2022. 79 Investments in individual projects included USD 2.5 billion for the Seminoe Project in the US state of Wyoming, USD 1.45 billion (CNY 10 billion) for the Zhejiang Jinyun Project in China and USD 1.7 billion for the Gouvaes Project in Portugal. 80

Investment in power grid infrastructure totalled an estimated USD 274 billion in 2022, most of it in the United States, China and Europe. 81 In the United States, only around 30% of the investment was devoted to grid expansion; a growing share was used to replace and upgrade equipment and to strengthen structures against weather-related damages (such as installing better power poles to withstand high winds). 82 China has budgeted more than CNY 500 billion (USD 72.4 billion) for ultra-high-voltage projects, upgrading the distribution network and digitalising grids. 83 In Europe, investment has focused on connecting offshore wind farms, modernising ageing infrastructure and digitalising grids to allow demand-side load management, electric vehicle charging and electrification of industry. 84

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Global investment in grid infrastructure reached 274 USD billion in 2022.

Other countries also made relevant power grid infrastructure investment announcements in 2022. In Australia, AUD 20 billion (USD 13.6 billion) was allocated for the Rewiring the Nation network overhaul, aimed at upgrading and extending transmission lines to allow for greater integration of renewables and to enable energy storage to play a wider role in the electricity market. 85 India announced USD 29.6 billion to build additional transmission to connect renewables. 86 Investment in electricity networks in the developing world has been impeded by the weak financial situation of some distribution companies, the lack of adequate investment frameworks (such as performance-based regulation), the lack of least-cost system plans, and high operational and commercial losses. 87

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Footnotes

i These data include stationary storage projects (large- and small-scale) but do not include pumped hydropower, compressed air or hydrogen. The majority are battery projects. The data cover capital spent on deployment and largely exclude capital invested in companies, research and development, and manufacturing.

ii These investment numbers include recycling, materials separation and processing, and component manufacturing, which are typically excluded from storage investment figures elsewhere.

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    “Renewables 2023 Global Status Report Collection: Global Overview”, July 2023, https://www.ren21.net/wp-content/uploads/2019/05/GSR2023_GlobalOverview_Full_Report_with_endnotes_web.pdf. 1
  2. REN21, “Renewables 2023 Global Status Report Collection: Renewables in Energy Supply”, July 2023, https://www.ren21.net/gsr-2023/modules/energy_supply/01_energy_supply. 2
  3. Ember, “Global Electricity Review 2023”, April 12, 2023, https://emberclimate.org/insights/research/global-electricity-review-2023.3
  4. Geschäftsstelle der Arbeitsgruppe Erneuerbare Energien-Statistik (AGEE-Stat) am Umweltbundesamt, “Erneuerbare Energien in Deutschland 2022”, March 2023, https://www.umweltbundesamt.de/publikationen/erneuerbare-energien-in-deutschland-2022; WindEurope Intelligence Platform, “Wind Energy in Europe: 2022 Statistics and the Outlook for 2023-2027”, February 28, 2023, https://windeurope.org/intelligence-platform/product/wind-energy-in-europe-2022-statistics-and-the-outlook-for-2023-2027; Institute for Sustainable Energy Policies, “2022 Share of Electricity from Renewable Energy Sources in Japan”, April 13, 2023, https://www.isep.or.jp/en/1436; US Energy Information Administration, “Short-term Energy Outlook”, May 2023, https://www.eia.gov/outlooks/steo/pdf/steo_full.pdf. Figure 1 from Ember, op. cit. note 3; maximum daily penetration for Europe from Fraunhofer-Gesellschaft, “Energy Charts”, 2023, https://energy-charts.info/index.html; Australia from “Open Platform for National Electricity Market Data”, 2023, https://opennem.org.au. 4
  5. Ibid, all references.5
  6. International Energy Agency (IEA), “World Energy Outlook 2022”, October 2022, https://iea.blob.core.windows.net/assets/830fe099-5530-48f2-a7c1-11f35d510983/WorldEnergyOutlook2022.pdf. 6
  7. Ibid.7
  8. Carbon Tracker Initiative, “Britain Wastes Enough Wind Generation to Power 1 Million Homes”, June 15, 2023, https://carbontracker.org/britain-wastes-enough-wind-generation-to-power-1-million-homes.8
  9. B. Wehrmann, “Germany Curtails Four Percent of Renewable Power Production Due to Grid Bottlenecks”, Clean Energy Wire, December 13, 2022, https://www.cleanenergywire.org/news/germany-curtails-four-percent-renewable-power-production-due-grid-bottlenecks. 9
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  12. International Renewable Energy Agency (IRENA), “Utility-scale Batteries: Innovation Landscape”, 2019, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Sep/IRENA_Utility-scale-batteries_2019.pdf. 12
  13. IRENA, “Sector Coupling in Facilitating Integration of Variable Renewable Energy in Cities”, October 2021, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2021/Oct/IRENA_Sector_Coupling_in_Cities_2021.pdf. 13
  14. Ibid.14
  15. Hydrogen Central, “Greenhyscale Has Begun the Installation Process of a 6 MW Prototype Electrolyser in the Danish Green Industrial Park, Greenlab”, April 12, 2023, https://hydrogen-central.com/greenhyscale-begun-installation-process-6-mw-prototype-electrolyser-danish-green-industrial-park-greenlab. 15
  16. Energy Market Authority, Government of Singapore, “What Is Demand Side Management”, 2022, https://www.ema.gov.sg/Demand_Side_Management.aspx.16
  17. Energy Sector Management Assistance Program, “Using Forecasting Systems to Reduce Cost and Improve Dispatch of Variable Renewable Energy”, World Bank, 2019, https://doi.org/10.1596/32072.17
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  20. Sidebar 1 based on the following sources: IEA and Réseau de Transport d'Electricité, “Conditions and Requirements for the Technical Feasibility of a Power System with a High Share of Renewables in France Towards 2050”, March 16, 2021, https://doi.org/10.1787/6be9f3ac-en; N.K. Roy et al., “Virtual Inertia Support in Power Systems for High Penetration of Renewables – Overview of Categorization, Comparison, and Evaluation of Control Techniques”, IEEE Access, Vol. 10 (2022), pp. 129190–216, https://doi.org/10.1109/ACCESS.2022.3228204; D. Pagnani et al., “Overview of Black Start Provision by Offshore Wind Farms”, IECON 2020 The 46th Annual Conference of the IEEE Industrial Electronics Society, 2020, pp. 1892-1898, https://ieeexplore.ieee.org/document/9254743; Think Grid, “Synchronous Condensers for Better Grid Stability”, March 16, 2016, https://www.think-grid.org/synchronous-condensers-better-grid-stability; P. Denholm et al., “Inertia and the Power Grid: A Guide Without the Spin”, National Renewable Energy Laboratory (NREL), May 1, 2020, https://www.nrel.gov/docs/fy20osti/73856.pdf; Y. Lin et al., “Research Roadmap on Grid-Forming Inverters”, NREL, November 2020, https://www.nrel.gov/docs/fy21osti/73476.pdf.20
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  22. Ibid.22
  23. Electric Power Research Institute, “Understanding Flexible Interconnection”, September 20, 2018, https://restservice.epri.com/publicdownload/000000003002014475/0/Product.23
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  25. IRENA, “Renewable Energy Benefits: Measuring the Economics”, 2016, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2016/IRENA_Measuring-the-Economics_2016.pdf; IRENA, “Measuring the Socio-Economics of Transition: Focus on Jobs”, 2020, https://www.irena.org/-/media/Irena/Files/Technical-papers/IRENA_Measuring_Socio-economic_Jobs_2020.pdf; COBENEFITS, “Renewable Energy, Employment Opportunities and Skill Requirements: Socio-economic Assessment Tools, Key Findings and Expert Contacts”, November 2021, https://www.cobenefits.info/wp-content/uploads/2021/11/Co-Benefits-Factsheets_Employment_2021-2022.pdf; Organisation for Economic Co-operation and Development (OECD), “Linking Renewable Energy to Rural Development”, October 11, 2012, https://www.oecd-ilibrary.org/urban-rural-and-regional-development/linking-renewable-energy-to-rural-development_9789264180444-en. 25
  26. REN21 Policy Database. See GSR 2023 Data Pack, available at www.ren21.net/gsr2023-data-pack/systems.26
  27. Ibid.27
  28. Ibid.28
  29. H. Aposporis, “Greece Boosts Renewable Energy Target for 2030 by 9 GW, Adds Hydrogen”, Balkan Green Energy News, January 18, 2023, https://balkangreenenergynews.com/greece-boosts-2030-renewable-energy-target-by-9-gw-adds-hydrogen. 29
  30. G.F. Dycus, “Victoria Targets 6.3 GW of Renewable Storage by 2035”, pv magazine Australia, September 27, 2022, https://www.pv-magazine-australia.com/2022/09/27/victoria-targets-6-3-gw-of-renewable-storage-by-2035. 30
  31. J. St. John, “California Ups Renewables Target Again with New Plan to Add 85GW By 2035”, Canary Media, February 24, 2023, https://www.canarymedia.com/articles/clean-energy/california-ups-renewables-target-again-with-new-plan-to-add-85gw-by-2035; R. Kennedy, “Maryland Passes Energy Storage Target of 3 GW in 10 Years”, pv magazine USA, April 11, 2023, https://pv-magazine-usa.com/2023/04/11/maryland-passes-energy-storage-target-of-3-gw-in-10-years; J. Plautz, “New York to Double Energy Storage Target to at Least 6 GW by 2030”, Utility Dive, January 7, 2022, https://www.utilitydive.com/news/new-york-to-double-energy-storage-target-to-at-least-6-gw-by-2030/616793. 31
  32. A. Colthorpe, “US, EU Policies Prompt BloombergNEF to Upgrade Global Energy Storage Deployment Forecasts”, Energy Storage News, October 14, 2022, https://www.energy-storage.news/us-eu-policies-prompt-bloombergnef-to-upgrade-global-energy-storage-deployment-forecasts. 32
  33. A. Colthorpe, “Israel Adds Energy Storage-Friendly Tariffs to Maximise Renewable Energy Potential”, Energy Storage News, April 17, 2023, https://www.energy-storage.news/israel-adds-energy-storage-friendly-tariffs-to-maximise-renewable-energy-potential. 33
  34. A. Colthorpe, “'Major Breakthrough': Australia's Support for Energy Storage Tackles Key Electricity Policy Issue”, Energy Storage News, December 21, 2022, https://www.energy-storage.news/major-breakthrough-australias-support-for-energy-storage-tackles-key-electricity-policy-issue. 34
  35. White & Case LLP, “Electricity Storage in France: New Calls for Tenders Will Be Launched”, June 13, 2022, https://www.whitecase.com/insight-alert/electricity-storage-france-new-calls-tenders-will-be-launched; Bundesnetzagentur, “Auction Results for Innovative Installation Concepts and for Solar Installations on Buildings and Noise Barriers”, May 12, 2022, https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/EN/2022/20220512_Ausschreibungen.html. 35
  36. Figure 2 from REN21 Policy Database. See GSR 2023 Data Pack, available at www.ren21.net/gsr2023-data-pack/systems.36
  37. A. Colthorpe, “India Adds Energy Storage Obligation Policy to Renewable Energy Purchase Scheme”, Energy Storage News, July 26, 2022, https://www.energy-storage.news/india-adds-energy-storage-obligation-policy-to-renewable-energy-purchase-scheme; A. Colthorpe, “India's National Budget Includes Viability Gap Funding for 4GWh of Energy Storage”, Energy Storage News, February 1, 2023, https://www.energy-storage.news/indias-national-budget-includes-viability-gap-funding-for-4gwh-of-energy-storage. 37
  38. Carbon Brief, “China Briefing, 24 March 2022: 14FYP Energy Plan; More Plans on Energy Storage and Hydrogen; China's Emissions Analysis”, March 24, 2022, https://www.carbonbrief.org/china-briefing-24-march-2022-14fyp-energy-plan-more-plans-on-energy-storage-and-hydrogen-chinas-emissions-analysis. 38
  39. A. Colthorpe, “Philippines' Rule Changes ‘Will Propel ASEAN's Leading Energy Storage Market to Even Stronger Position'”, Energy Storage News, February 9, 2023, https://www.energy-storage.news/philippines-rule-changes-will-propel-aseans-leading-energy-storage-market-to-even-stronger-position. 39
  40. A. Colthorpe, “European Commission's Net Zero Industry Act Includes Energy Storage as Eligible Technology”, Energy Storage News, March 16, 2023, https://www.energy-storage.news/european-commissions-net-zero-industry-act-includes-energy-storage-as-eligible-technology. 40
  41. M. Maisch, “Romania Provides Funding for C&I Battery Storage Systems”, pv magazine, December 2, 2022, https://www.pv-magazine.com/2022/12/02/romania-provides-funding-for-ci-battery-storage-systems; E. Bellini, “Romania Introduces New Rules for Energy Storage”, pv magazine, February 6, 2023, https://www.pv-magazine.com/2023/02/06/romania-introduces-new-rules-for-energy-storage.41
  42. E. Bellini, “Turkey Introduces New Rules for Energy Storage”, pv magazine, November 21, 2022, https://www.pv-magazine.com/2022/11/21/turkey-introduces-new-rules-for-energy-storage.42
  43. C. Murray, “Chile Passes Major Energy Storage Bill”, Energy Storage News, October 24, 2022, https://www.energy-storage.news/chile-passes-major-energy-storage-bill.43
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  47. A. Colthorpe, “Nova Scotia Electricity Law Changes Give ‘New Momentum' to Energy Storage Projects”, Energy Storage News, March 24, 2023, https://www.energy-storage.news/nova-scotia-electricity-law-changes-give-new-momentum-to-energy-storage-projects. 47
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  49. Seetao, “Pumped Storage: the 14th Five-Year Plan Starts at 270 Million Kilowatts”, June 14, 2022, https://www.seetao.com/details/163461.html.49
  50. Bloomberg, “China's Massive Hydro Energy Storage Goals May Be Getting Bigger”, June 14, 2022, https://www.bloomberg.com/news/articles/2022-06-14/china-s-massive-hydro-energy-storage-goals-may-be-getting-bigger. 50
  51. A. Colthorpe, “India's Ministry of Power Issues Guidelines for Pumped Hydro Energy Storage”, Energy Storage News, February 22, 2023, https://www.energy-storage.news/indias-ministry-of-power-issues-guidelines-for-pumped-hydro-energy-storage; Aposporis, op. cit. note 29.51
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  56. IEA, “Inflation Reduction Act 2022: Sec. 50153 Interregional and Offshore Wind Electricity Transmission Planning, Modeling, and Analysis – Policies”, December 2, 2022, https://www.iea.org/policies/16310-inflation-reduction-act-2022-sec-50153-interregional-and-offshore-wind-electricity-transmission-planning-modeling-and-analysis. 56
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  60. Ibid. 60
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  67. BloombergNEF, “Energy Transition Investment Trends 2023”, 2023, https://about.bnef.com/energy-transition-investment.67
  68. Mercom Capital Group, “Energy Storage, Smart Grid, and Efficiency
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  69. IEA, “World Energy Investment 2022”, 2022, https://iea.blob.core.windows.net/assets/b0beda65-8a1d-46ae-87a2-f95947ec2714/WorldEnergyInvestment2022.pdf. 69
  70. Ibid.70
  71. China Briefing News, “China's Energy Storage Sector: Policies and Investment Opportunities”, July 8, 2022, https://www.china-briefing.com/news/chinas-energy-storage-sector-policies-and-investment-opportunities. 71
  72. BloombergNEF, “Top 10 Energy Storage Trends in 2023”, January 11, 2023, p. 10, https://about.bnef.com/blog/top-10-energy-storage-trends-in-2023; C. Murray, “US Battery Supply Chain Investments Reach US$92 Billion Since Biden Took Office”, Energy Storage News, January 26, 2023, https://www.energy-storage.news/us-battery-supply-chain-investments-reach-us92-billion-since-biden-took-office. 72
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  75. A. Colthorpe, “Australia to Begin ‘Energy Storage Target' Tenders This Year, Details to Come in Budget”, Energy Storage News, May 4, 2023, https://www.energy-storage.news/australia-to-begin-energy-storage-target-tenders-this-year-details-to-come-in-budget. 75
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  78. C. Murray, “Development Banks Invest US$83 Million in 34MWh of Storage Projects in Guyana”, Energy Storage News, June 21, 2022, https://www.energy-storage.news/development-banks-invest-us83-million-in-34mwh-of-storage-projects-in-guyana. 78
  79. International Hydropower Association (IHA), “New Tool Maps World's Water Batteries: The Clean Storage Solution for Renewables”, September 11, 2017, https://www.hydropower.org/news/new-tool-maps-world-e2-80-99s-water-batteries-the-clean-storage-solution-for-renewables. 79
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  81. BloombergNEF, op. cit. note 67; IEA, op. cit. note 69.81
  82. IEA, op. cit. note 69.82
  83. Ibid.83
  84. Ibid.84
  85. Colthorpe, op. cit. note 75.85
  86. R. Kumar Singh, “India Unveils $30 Billion Plan to Upgrade Grid for Clean Power”, Bloomberg, December 8, 2022, https://www.bloomberg.com/news/articles/2022-12-08/india-unveils-30-billion-plan-to-upgrade-grid-for-clean-power. 86
  87. IEA, op. cit. note 69.87
  88. Hydropower generation data in 2022 for all countries from IHA, personal communications with REN21, May 11, 2023, unless otherwise stated.88
  89. Ibid. IEA, “Annual grid-scale battery storage additions, 2017-2022”,
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  90. Ibid.90
  91. Ibid.91
  92. General Electric, “GE Connects All Units at 12 GW Jinzhai Pumped Storage Hydro Power Plant in China”, January 31, 2023, https://www.ge.com/news/press-releases/ge-connects-all-units-at-12-gw-jinzhai-pumped-storage-hydro-power-plant-in-china; China National Energy Administration, “Transcript of the press conference of the National Energy Administration in the first quarter of 2023”, http://www.nea.gov.cn/2023-02/13/c_1310697149.htm.92
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  94. Water Power Magazine, “First Unit Connected at Gouves Plant, Portugal”, January 24, 2022, https://www.waterpowermagazine.com/news/newsfirst-unit-connected-at-gouves-plant-portugal-9448843; C. Murray, “Iberdrola's 880 MW Pumped Hydro Plant in Portugal to Go Online in Mid-2022”, Energy Storage News, February 3, 2022, https://www.energy-storage.news/iberdrolas-880mw-pumped-hydro-plant-in-portugal-to-go-online-in-mid-2022; I. Todorović, “Portugal, Switzerland Launch Pumped Storage Hydropower Plants of Over 2 GW in Total”, Balkan Green Energy News, July 22, 2022, https://balkangreenenergynews.com/portugal-switzerland-launch-pumped-storage-hydropower-plants-of-over-2-gw-in-total. 94
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  102. Ibid.102
  103. Ibid.103
  104. S. Takyar, “India and Maldives to Establish Transmission Interconnection for Renewable Power Transfer”, REGlobal, April 27, 2022, https://reglobal.co/india-and-maldives-to-establish-transmission-interconnection-for-renewable-power-transfer-. 104
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  111. Energy Industry, “Fluence's AI-Powered Trading Platform to Optimize 182.5 MW Battery Energy Storage System in California”, Energy Industry Review, February 18, 2021, https://energyindustryreview.com/marketplace/fluences-ai-powered-trading-platform-to-optimize-182-5-mw-battery-energy-storage-system-in-california. 111
  112. Ibid.112
  113. A. Parikh, “Punjab Solar & Wind Deviation Settlement Mechanism to Come into Effect from January 2020”, Mercom India, October 25, 2019, https://mercomindia.com/punjab-solar-wind-deviation-jan-2020; Forum of Regulators, “Model Guidelines for Management of RE Curtailment”, January 2020, http://www.forumofregulators.gov.in/Study_Reports.html.113
  114. P. Sánchez Molina, “New Method for Long-Term Prediction of Renewables Generation in Europe”, pv magazine International, April 25, 2022, https://www.pv-magazine.com/2022/04/25/new-method-for-long-term-prediction-of-renewables-generation-in-europe. 114
  115. European Centre for Medium-Range Weather Forecasts, “Destination Earth Use Case, Energy Systems”, https://stories.ecmwf.int/energy-systems-use-case/index.html, accessed July 2023. 115
  116. SMART4RES, https://www.smart4res.eu, accessed May 2023.116
  117. Ibid.117
  118. ENTSO-E Technopedia, “Enhanced RES Infeed Forecasting – Wind”, 2022, https://www.entsoe.eu/Technopedia/techsheets/enhanced-res-infeed-forecasting-wind.118
  119. Smart Energy International, “Customer Centric DR Key for Japan's Energy Transition Challenges”, August 3, 2022, https://www.smart-energy.com/industry-sectors/energy-grid-management/customer-centric-demand-response-a-key-solution-for-japans-energy-transition-challenges. 119
  120. Ibid.120
  121. Yahoo Finance, “Global Virtual Power Plant Market Report 2022: High Investment in VPP Installations Is a Key Trend”, May 31, 2023, https://finance.yahoo.com/news/global-virtual-power-plant-market-141500559.html. Table 1 based on the following sources: AGL, “Annual Reports | Investors | About AGL”, August 19, 2022, https://www.agl.com.au/about-agl/investors/annual-reports; Autogrid, “Webinar: Building an Adaptive Energy Grid with DERMS and VPP”, https://www.auto-grid.com/assets/guidehouse-insights-vpp-leaderboard-2022, accessed May 31, 2023; Enel, “‘Enel Box', the New Enel Grids Solution for More Sustainable Substations as Part of a Circular Economy”, April 7, 2023, https://www.enel.com/media/explore/search-press-releases/press/2023/04/enel-box-the-new-enel-grids-solution-for-more-sustainable-substations-as-part-of-a-circular-economy; Federal Ministry of Economic Affairs and Climate Action, “Virtual Power Plants Come of Age in Europe”, May 4, 2022, https://www.german-energy-solutions.de/GES/Redaktion/EN/News/2022/20220504-virtual-powerplants.html; Prospero, “Biggest Virtual Power Plants in the World”, December 11, 2021, https://www.prosperoevents.com/biggest-virtual-power-plants-in-the-world; J. St. John, “OhmConnect Bets $100M That Free Smart Thermostats Can Prevent Summer Blackouts in California”, Canary Media, June 15, 2021, https://www.canarymedia.com/articles/grid-edge/ohmconnects-100m-bet-on-1-million-free-thermostats-to-save-california-from-summer-blackouts; M. Topalov, “Statkraft Unveils 1 GW Virtual Power Plant in UK, Intends to Double Capacity by Summer”, Current News, March 5, 2019, https://www.current-news.co.uk/statkraft-unveils-1gw-virtual-power-plant-in-uk-intends-to-double-capacity-by-summer; N. Wetsman, “Tesla Quietly Built a Virtual Power Plant in Japan”, The Verge, August 29, 2022, https://www.theverge.com/2022/8/29/23326776/tesla-virtual-power-plant-japan-grid-renewable; F. Lambert, “Tesla Virtual Power Plant Is Rocketing Up, Reaches 50 MW”, Electrek, September 2, 2022, https://electrek.co/2022/09/02/tesla-virtual-power-plant-growing.121
  122. Next Kraftwerke, https://www.next-kraftwerke.com/vpp, accessed May 2023.122
  123. Shell, “Shell Acquires Full Ownership of MachineMax to Drive Next Phase of Global Commercialization to Multiple Industry Sectors”, June 24, 2021, https://www.shell.com/business-customers/lubricants-for-business/news-and-media-releases/2021/shell-acquires-full-ownership-of-machinemax-to-drive-next-phase-of-global-commercialisation-to-multiple-industry-sectors.html. 123
  124. BP, “BP to Grow Leading US Technology Company That Turns Commercial Buildings into Virtual Power Plants”, October 7, 2021, https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-to-grow-leading-us-technology-company-that-turns-commercial-buildings-into-virtual-power-plants.html. 124
  125. Power Technology, “Lightsource bp begins operations at 152MW solar plant in Indiana”, May 24, 2023, https://www.power-technology.com/news/lightsource-bp-operations-bellflower-solar-indiana. 125
  126. Z. Chenchen and X. Hua, “First Virtual Power Plant Management Center Opens in S. China”, CGTN, September 17, 2022, https://news.cgtn.com/news/2022-09-17/First-virtual-power-plant-management-center-opens-in-S-China-1doKmadzJm0/index.html. 126
  127. N. Wetsman, “Tesla Quietly Built a Virtual Power Plant in Japan”,
    The Verge, August 29, 2022, https://www.theverge.com/2022/8/
    29/23326776/tesla-virtual-power-plant-japan-grid-renewable    .127
  128. C. Murray, “Belgian TSO: Residential Virtual Power Plant Will Cover 15% of Country's Grid-balancing Needs by End of Year”, Energy Storage News, September 14, 2022, https://www.energy-storage.news/belgian-tso-residential-virtual-power-plant-will-cover-15-of-countrys-grid-balancing-needs-by-end-of-year. 128
  129. Protergia, “Protergia and emsys VPP Officially Inaugurate First Virtual Power Plant in Greece”, pv magazine, November 3, 2022 https://www.pv-magazine.com/press-releases/protergia-and-emsys-vpp-officially-inaugurate-first-virtual-power-plant-in-greece-2. 129
  130. V. Spasić, “First Virtual Power Plant in Greek Energy Market
    Inaugurated”, Balkan Green Energy News, November 4, 2022,
    https://balkangreenenergynews.com/first-virtual-power-plant-
    in-greek-energy-market-inaugurated    . 130
  131. M. Schoeck, “Sunrun Selected to Deploy 17 MW VPP Network in
    Puerto Rico”, pv magazine, November 2, 2022, https://pv-magazine-
    usa.com/2022/11/02/sunrun-selected-to-deploy-17-mw-vpp-
    network-in-puerto-rico    . 131
  132. Ibid.132
  133. Sidebar 2 based on the following sources: US Department of Energy, “Grid Systems”, https://www.energy.gov/oe/grid-systems, accessed May 2023; NREL, “Microgrids”, https://www.nrel.gov/grid/microgrids.html, accessed May 2023; Center for Climate and Energy Solutions, “Microgrids”, https://www.c2es.org/content/microgrids, accessed May 2023; Siemens, “Microgrids for Sustainability”, https://www.siemens.com/global/en/products/energy/energy-automation-and-smart-grid/microgrid.html, accessed May 2023; GE Grid Solutions, “Microgrid and DER Management Solutions”, https://www.gegridsolutions.com/powerd/catalog/microgrid_der_mgmt.htm, accessed May 2023.133
  134. Snapshot: United States based on the following sources: Babcock
    Ranch, https://babcockranch.com, accessed 2023; D. Orf, “How Microgrids and Solar Panels Are Becoming Unsung Hurricane Heroes”, Popular Mechanics, December 2, 2022, https://www.popularmechanics.com/science/green-tech/a42126384/how-microgrids-and-solar-panels-are-becoming-unsung-hurricane-heroes; R. Ramirez, “This 100% Solar Community Endured Hurricane Ian with No Loss of Power and Minimal Damage”, CNN, October 2, 2022, https://edition.cnn.com/2022/10/02/us/solar-babcock-ranch-florida-hurricane-ian-climate/index.html. 134

Global Overview | Investment

Investment

Energy System Investments

Global new investment in renewable power and fuels i reached a record high of USD 495.4 billion in 2022. 187 (See GSR 2023 Renewables in Energy Supply Module.) However, this was less than one-third (29.4%) of the total global investment committed across the power and fuel supply and infrastructure (including fossil fuels and nuclear) during the year. 188 (See Figure 10.) Investment in renewable power and fuels increased 17.2% from 2021, due largely to the global rise in solar PV installations. 189

Renewable energy accounted for less than one-third of the global investment across the power and fuel supply and infrastructure.

Investment varied by region, rising in Brazil, China and India but falling in Europe and the United States. China continued to account for the largest share of investment, at 55%, followed by Europe (11.3%), Asia-Oceania (excluding China and India; 10.8%), the United States (10.0%) and all other world regions, which accounted for 4% or less of the total. 190

Spurred in part by high prices, global investment in the fossil fuel supply increased in 2022, although it did not return to pre-pandemic levels. 191 In many parts of the world, the Russian Federation's invasion of Ukraine drove up fossil gas prices to record levels and oil prices to levels not seen in a decade or more. 192 Higher investment in coal – mostly in China and India – was driven by robust demand and high prices. 193 These trends resulted in record net profits from fossil fuel sales. 194 (See Sidebar 2.)

FIGURE 10.

Global Investment in the Energy Sector, by Type, 2022

 FIGURE 10.

Source: See endnote 188 for this module.

Note: "Low-emission fuels" include modern liquid and gaseous bioenergy, low-emission hydrogen and low-emission hydrogen-based fuels.

Divestment

Since 2011, growing numbers of institutions worldwide have divested from, or sold off their financial interests in, fossil fuel companies. By October 2022, around 1,559 institutions, with estimated total assets of around USD 40.5 trillion, had committed to fossil fuel divestment ii . 195 However, there were fewer new divestment announcements in 2022 than in 2021, when a flood of announcements were made in the lead-up to the UN Climate Change Conference (COP 26) in Glasgow, Scotland. 196

By late 2022, institutions with assets of around USD 40.5 trillion had committed to divesting from fossil fuels.

Among key divestment moves in 2022, Princeton University in the United States announced that it was disassociating itself from 90 companies that are involved in thermal coal or tar sands segments of the fossil fuel industry. 197 In September, HSBC, one of the world's largest banking and financial services organisations, announced a policy to phase out coal-fired power and thermal coal mining from its listed holdings. 198 Later in the year, HSBC announced that it would also stop funding new oil and gas fields. 199 In July, with support from the Vatican, 35 faith-based institutions from six countries – with combined assets of more than USD 1.25 billion – announced divestment from fossil fuel companies. 200

Some have argued that the broader divestment movement is largely ineffective, based on the view that only a small portion of investors divest their holdings, and that divested shares are bought by other investors. 201 However, others have noted that, on a country-level, in years that more assets are committed to fossil fuel divestment, the oil and gas sector fundraises less compared with its historical average. 202 Yet at the same time, oil and gas financing across countries has continued to increase. 203

Funds divested from fossil fuel companies are not necessarily re-invested in companies associated with renewables. 204 However, the global network DivestInvest links the two by providing guidance to organisations and individuals during the divestment process and encouraging them to establish climate-friendly criteria for their investments (for example, by investing in renewable energy companies, low-carbon transport, and sustainable agriculture and forestry options). 205

Shifting Frameworks for Investment in Renewables

Investors wishing to address climate change and to support renewables are increasingly turning to sustainable finance options, in consideration of regulatory requirements, risk management imperatives and/or changes in demand and asset allocation strategies. 206 (See Box 3.) Three frameworks that are increasingly relevant for renewable energy finance and investment are: 1) the development of sustainable finance taxonomies at the national and regional levels to provide information on the environmental and/or social performance of enterprises and financial products; 2) green bonds, the proceeds of which may go to renewables; and 3) systems that rate the performance of enterprises according to environmental, social and governance criteria to help assess the suitability of a company, activity or fund for investment. 207

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Sustainable Finance Taxonomies

Sustainable finance taxonomies provide a classification of economic activities with the aim of clarifying which investments and/or activities may be defined as sustainable or “green”. 208 Such taxonomies can be relevant for renewables in two main ways: 1) for companies producing or manufacturing renewable energy technologies; and 2) for the owners or operators of renewable energy assets (such as a utility that operates a wind farm as part of its broader portfolio). 209 For example, renewables-related economic activities may be coded “green”; fossil fuel-based activities that adhere to certain standards may be coded “yellow”; while other activities may be “red”, similar to a traffic light system. 210

The number of sustainable finance taxonomies in use or under development has increased rapidly since the Paris Agreement was signed in 2015. 211 (See Figure 13.) In 2022, Peru announced its intention to develop a Green Finance Taxonomy by 2025. 212 In December, the Taiwan Sustainable Taxonomy was released, which encourages companies to voluntarily disclose information on the alignment of their primary economic activities with the taxonomy. 213 In Hong Kong, work began on proposing a structure and core elements for a local green classification framework. 214

The vested interests in each country's definitions make creating a harmonised taxonomy across jurisdictions challenging. 215 Although a global, harmonised taxonomy is not yet on the table, diverse regional initiatives are under way that may provide the first steps towards standardisation. 216 In July 2020, China and the EU began developing a Common Ground Taxonomy (CGT) through a working group of the International Platform on Sustainable Finance, identifying commonalities and differences in their approaches. 217 In June 2022, a version of the CGT was published that covered 72 jointly recognised climate mitigation activities. 218 The Association of Southeast Asian Nations (ASEAN) released the second version of its joint taxonomy in early 2023, classifying economic activities based on their grade of alignment, thus establishing a framework within which member states can develop national taxonomies. 219 In 2022, a common framework for sustainable finance taxonomies was officially initiated across Latin America and the Caribbean, with co-operation from seven organisations across the region. 220

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The number of sustainable finance taxonomies in use or under development has increased rapidly since 2015.

In specific situations, sustainable finance taxonomies may divert or discourage investment from renewable energy when its relative cost of capital is higher. This could happen, for example, if companies are allowed to be labelled as aligned with a particular taxonomy category (for example, having a certain threshold of greenhouse gas emissions for fossil power production), when in fact the category has not been defined to accurately reflect scientific requirements (such as to reach substantial emission reduction requirements that align with the goals of the Paris Agreement). 221 In this way, investment may be channelled away from companies or projects that more fully support renewable energy deployment. 222

FIGURE 13.

Sustainable Finance Taxonomies Worldwide, In Place, Under Development and In Discussion, 2022

 FIGURE 13.

Source: See endnote 211 for this module.

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Green Bonds

Among the various instruments available to finance renewable energy projects, green bonds have become especially prominent in recent years. 223 Green bonds differ from traditional bonds in that the proceeds are earmarked for qualifying investments in renewable technologies or in various forms of climate adaptation and mitigation. Investors obtain a certain interest rate over a stipulated time period, and the funds must be used for the purposes for which the bond was issued. This provides investors with greater visibility over the actual use of the funds than is the case for traditional bonds.

In 2022, USD 649 billion in green bonds was issued, or 7% less than in 2021. 224 This decline occurred in all world regions except Asia, where green bond issuance grew 8% in 2022. 225 China leads the Asia and Pacific region, accounting for 67% of the green bonds issued. 226 Although the total number of green bonds declined in Europe, the region remains the largest issuer with around half of the total supply. 227

In late 2022, macroeconomic conditions posed challenges for issuers of green bonds. European growth forecasts were downgraded, inflation forecasts were revised upwards, and the Euro was heading toward parity with the US dollar. 228 Although issuers continued to visit the bond market, caution was illustrated by multi-day periods with no new issuance and reports of deals being pulled at the last minute. 229

Environmental, Social and Governance (ESG) Criteria

The use of ESG criteria has shifted from being a niche focus to becoming a component of mainstream finance in many member countries of the Organisation for Economic Co-operation and Development (OECD). 230 Net inflows of investment into ESG funds in 2022 totalled USD 89 billion, down 78% from USD 405 billion in 2021. 231 This decline reflects fund relabelling developments in Europe, stricter standards in Asia, and debates on the definition of ESG in the United States, where ESG has become highly politicised and some states have redirected funds away from large asset managers with ESG priorities. 232

The categorisation of an organisation or its activities as ESG may be based on a risk perspective (for example, how environmental risks may affect a company) and/or by an impact perspective (for example, the impact that a company or activity has on the outside world). 233 Companies that rate and value ESG funds more from a risk perspective have been criticised for using methodologies that ignore the larger (environmental) impact of a company on the planet. 234 As the impact perspective becomes increasingly relevant to investors aiming for net zero carbon or clean energy goals, a “double-materiality concept” is arising, which incorporates both the risk and impact perspectives. 235 This approach may have more relevance for renewables. 236 Relatedly, ESG products increasingly are being used to assess a company's commitments and actions to transition to renewable energy. 237

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Footnotes

i Renewable power and fuels does not include hydropower projects larger than 50 MW. In addition, these estimates do not include investments in renewable heating and cooling technologies, for which data are not collected systematically.

ii Through fossil fuel divestment, an institution makes a binding commitment to exclude any fossil fuel company (coal, oil and fossil gas) from either all or part of its managed asset classes, or to selectively exclude companies that derive a large portion of their revenue from coal and/or tar sands companies. Organisations also may commit to some form of an exclusion policy based on different criteria, such as whether the company is aligned with the goals of the Paris Agreement.

  1. United Nations Development Programme (UNDP) Sustainable Energy Hub, “Three Trends That Will Shape the Energy Sector in 2023”, January 12, 2023, https://www.undp.org/energy/blog/three-trends-will-shape-energy-sector-2023; International Energy Agency (IEA), “Global Energy Crisis – Topics”, https://www.iea.org/topics/global-energy-crisis, accessed May 11, 2023. Box 1 from the following sources: IEA, “World Energy Outlook 2022”, 2022, https://iea.blob.core.windows.net/assets/830fe099-5530-48f2-a7c1-11f35d510983/WorldEnergyOutlook2022.pdf; IEA, “Global Energy Crisis – Topics”, op. cit. this note; Eurostat, “Electricity & Gas Hit Record Prices in 2022”, April 26, 2023, https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20230426-2.1
  2. IEA, “World Energy Outlook 2022”, op. cit. note 1.2
  3. European Commission, “REPowerEU: Affordable, Secure and Sustainable Energy for Europe”, May 18, 2022, https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/repowereu-affordable-secure-and-sustainable-energy-europe_en; US Environmental Protection Agency (EPA), “The Inflation Reduction Act”, Overviews and Factsheets, November 21, 2022, https://www.epa.gov/green-power-markets/inflation-reduction-act.3
  4. World Meteorological Organization, “Climate and Weather Extremes in 2022 Show Need for More Action”, December 23, 2022, https://public.wmo.int/en/media/news/climate-and-weather-extremes-2022-show-need-more-action. 4
  5. BP, “Statistical Review of World Energy 2022”, 2022, https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2022-full-report.pdf. 5
  6. United Nations Framework Convention on Climate Change (UNFCCC), “Maintaining a Clear Intention to Keep 1.5°C Within Reach”, https://unfccc.int/maintaining-a-clear-intention-to-keep-15degc-within-reach, accessed June 28, 2023.6
  7. Ibid.7
  8. United Nations Environment Programme (UNEP), “COP27 Ends with Announcement of Historic Loss and Damage Fund”, November 22, 2022, https://www.unep.org/news-and-stories/story/cop27-ends-announcement-historic-loss-and-damage-fund. 8
  9. IEA, “Energy Technology Perspectives 2023”, 2023, https://iea.blob.core.windows.net/assets/a86b480e-2b03-4e25-bae1-da1395e0b620/EnergyTechnologyPerspectives2023.pdf; US EPA, op. cit. note 3. Box 2 based on the following sources: McKinsey, “Renewable-Energy Development: Disrupted Supply Chains”, February 2023, https://www.mckinsey.com/industries/electric-power-and-natural-gas/our-insights/renewable-energy-development-in-a-net-zero-world-disrupted-supply-chains; IEA, “Renewable Energy Market Update – June 2023”, June 2023, https://www.iea.org/reports/renewable-energy-market-update-june-2023; BloombergNEF, “Cost of New Renewables Temporarily Rises as Inflation Starts to Bite”, June 30, 2022, https://about.bnef.com/blog/cost-of-new-renewables-temporarily-rises-as-inflation-starts-to-bite; Energy Transitions Commission, “Streamlining Planning and Permitting to Accelerate Wind and Solar Deployment”, in Barriers to Clean Electrification Series – Planning and Permitting, January 2023, https://www.energy-transitions.org/wp-content/uploads/2023/01/Barriers_PlanningAndPermitting_vFinal.pdf; BloombergNEF, “2H 2022 Levelized Cost of Electricity Update”, December 2022, https://about.bnef.com/blog/2h-2022-levelized-cost-of-electricity-update; Wood Mackenzie, “Renewable Power in Asia Pacific Gains Competitiveness Amidst Cost Inflation”, January 2022, https://www.woodmac.com/press-releases/renewable-power-in-asia-pacific-gains-competitiveness-amidst-cost-inflation; J. Saul, W. Mathis and R. Morison, “Planet-Saving Wind Farms Fall Victim to Global Inflation Fight”, Bloomberg, March 10, 2023, https://www.bloomberg.com/news/articles/2023-03-10/offshore-wind-farms-face-fresh-hurdles-around-the-world-because-of-inflation. 9
  10. Figure 1 from IEA, “World Energy Outlook 2021”, 2021, https://iea.blob.core.windows.net/assets/4ed140c1-c3f3-4fd9-acae-789a4e14a23c/WorldEnergyOutlook2021.pdf. 10
  11. L. Cozzi et al., “For the First Time in Decades, the Number of People Without Access to Electricity Is Set to Increase in 2022 – Analysis”, IEA, November 3, 2022, https://www.iea.org/commentaries/for-the-first-time-in-decades-the-number-of-people-without-access-to-electricity-is-set-to-increase-in-2022. 11
  12. IEA, “Energy Access – Achieving Modern Energy for All by 2030 Seems Unlikely”, https://www.iea.org/topics/energy-access, accessed May 11, 2023.12
  13. Ibid. 13
  14. Ibid.14
  15. Renewable Energy Policy Network for the 21st Century (REN21), “Renewables 2023 Global Status Report Collection, Renewables in Energy Supply”, June 2023, https://www.ren21.net/wp-content/uploads/2019/05/GSR-2023_Energy-Supply-Module.pdf.15
  16. Ibid.16
  17. IEA, “World Energy Balances”, 2022, https://www.iea.org/reports/world-energy-balances-overview/world.17
  18. Ibid.18
  19. Figure 2 from Ibid.19
  20. Figure 3 from Ibid. 20
  21. Ibid.21
  22. Ibid.22
  23. REN21, op. cit. note 15.23
  24. Ibid.; IEA “Renewable Heat – Renewables 2022 – Analysis”, 2022, https://www.iea.org/reports/renewables-2022/renewable-heat.24
  25. REN21, op. cit. note 15.25
  26. REN21 Policy Database. See Reference Table R3a in the GSR 2023 Renewables in Energy Demand Data Pack, http://www.ren21.net/gsr2023-data-pack. 26
  27. IEA, “CO2 Emissions in 2022 – Analysis”, March 2023, https://www.iea.org/reports/co2-emissions-in-2022.27
  28. Ibid.28
  29. Ibid.29
  30. Ibid.30
  31. Ibid.31
  32. Figure 4 from Ibid.32
  33. M. Wiatros-Motyka, “Global Electricity Review 2023”, Ember, https://ember-climate.org/insights/research/global-electricity-review-2023/#supporting-material. 33
  34. Ibid. Figure 5 from Ember, “Electricity Data Explorer | Open Source Global Electricity Data”, 2023, https://ember-climate.org/data/data-tools/data-explorer.34
  35. Our World in Data, “Carbon Intensity of Electricity”, https://ourworldindata.org/grapher/carbon-intensity-electricity, accessed June 27, 2023.35
  36. Ibid.36
  37. REN21, “Renewables 2023 Global Status Report Collection: Renewables in Energy Demand”, March 2023, https://www.ren21.net/wp-content/uploads/2019/05/GSR2023_Demand_Modules.pdf.37
  38. Ibid.38
  39. International Renewable Energy Agency (IRENA), “Electrification with Renewables: Driving the Transformation of Energy Services”, 2019, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Jan/IRENA_RE-Electrification_SGCC_2019_preview.pdf. 39
  40. REN21, op. cit. note 15.40
  41. Energy Institute in partnership with KPMG and KEARNEY, “Statistical Review of World Energy 2023, 72nd Edition”, June 2023, https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2022-full-report.pdf. 41
  42. “Explained: Why India Is Facing Longest Power Cuts in 6 Years”, Times of India, April 30, 2022, https://timesofindia.indiatimes.com/india/explained-why-india-is-facing-longest-power-cuts-in-6-years/articleshow/91198487.cms; Bloomberg, “China's Factories Still Struggling as Power Cuts Curb Output”, August 31, 2022, https://www.bloomberg.com/news/articles/2022-08-31/china-factory-activity-falls-again-as-power-outages-curb-output; S-L. Tan, “China Is Facing Another Power Crunch. But This Time It's Likely to Be Different”, CNBC, August 23, 2022, https://epthinktank.eu/2023/01/12/how-will-increasing-fuel-prices-impact-transport-ten-issues-to-watch-in-2023. 42
  43. REN21, op. cit. note 37.43
  44. IRENA, “World Energy Transitions Outlook 2023”, June 2023, https://mc-cd8320d4-36a1-40ac-83cc-3389-cdn-endpoint.azureedge.net/-/media/Files/IRENA/Agency/Publication/2023/Jun/IRENA_World_energy_transitions_outlook_v_1_2023.pdf; IEA, “World Energy Outlook 2022”, op. cit. note 1.44
  45. Ibid.45
  46. Ibid. 46
  47. REN21, op. cit. note 37.47
  48. REN21, op. cit. note 15.48
  49. Ibid.49
  50. IEA, “Electrification – Analysis”, September 2022, https://www.iea.org/reports/electrification.50
  51. Ibid.51
  52. Ibid.52
  53. “Greenhyscale Has Begun the Installation Process of a 6 MW Prototype Electrolyser in the Danish Green Industrial Park, Greenlab.” Hydrogen Central, April 12, 2023. https://hydrogen-central.com/greenhyscale-begun-installation-process-6-mw-prototype-electrolyser-danish-green-industrial-park-greenlab/ 53
  54. IRENA, “Hydrogen”, https://www.irena.org/Energy-Transition/Technology/Hydrogen, accessed May 21, 2023.54
  55. UNDP Sustainable Energy Hub, op. cit. note 1.55
  56. European Commission, “A Hydrogen Strategy for a Climate-Neutral Europe”, July 2020, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52020DC0301. The EU Hydrogen Strategy consists of the following phases: Phase 1 (2020-2024): Install 6 GW of renewable hydrogen electrolysers and produce up to 1 million tonnes of renewable hydrogen. Scale up electrolyser manufacturing, including large ones up to 100 MW and establish hydrogen refuelling stations for fuel-cell buses and trucks. Retrofit existing hydrogen production plants with carbon capture and storage technologies. Phase 2 (2025-2030): Install 40 GW of renewable hydrogen electrolysers and produce up to 10 million tonnes of renewable hydrogen. Gradual cost competitiveness of renewable hydrogen. Implement demand side policies for industrial applications, including steel-making, trucks, rail, and maritime transport. Use green hydrogen for balancing a renewables-based electricity system, providing flexibility and storage.56
  57. FleishmanHillard, “National Hydrogen Strategies in the EU Member States”, February 2022, https://fleishmanhillard.eu/wp-content/uploads/sites/7/2022/02/FH-National-Hydrogen-Strategies-Report-2022.pdf. The Hydrogen Innovation Scheme is divided into two streams. Stream 1 focuses on funding feasibility studies or technical demonstrations of hydrogen production, distribution, or storage solutions at various Technology Readiness Levels (TRL 3 to 7). Stream 2 provides support for the development of test and demonstration facilities and equipment within Scotland. See also Scottish Government, “Emerging Energy Technologies Fund – Hydrogen Innovation Scheme: Form and Guidance”, October 21, 2022, http://www.gov.scot/publications/emerging-energy-technologies-fund-hydrogen-innovation-scheme-form-and-guidance. 57
  58. Energy Transitions Commission, op. cit. note 9.58
  59. Ibid.59
  60. Ibid.60
  61. IEA, “Renewable Energy Market Update – June 2023”, op. cit. note 9.61
  62. Energy Transitions Commission, op. cit. note 9.62
  63. IEA, “Renewable Energy Market Update – June 2023”, op. cit. note 9.63
  64. Ibid.64
  65. Ibid.65
  66. Energy Transitions Commission, op. cit. note 9.66
  67. Ibid.67
  68. Ibid.68
  69. Ibid.69
  70. Ibid.70
  71. Global Wind Energy Council, 2022, "India Wind Power Market Outlook, 2022-2026", https://gwec.net/wp-content/uploads/2022/
    08/India-Outlook-2026.pdf    .71
  72. S. Mojib Zahraee, N. Shiwakoti and P. Stasinopoulos, “Agricultural Biomass Supply Chain Resilience: COVID-19 Outbreak vs. Sustainability Compliance, Technological Change, Uncertainties, and Policies”, Cleaner Logistics and Supply Chain, Vol. 4 (July 2022), p. 100049, https://doi.org/10.1016/j.clscn.2022.100049.72
  73. OECD, “Supply of Critical Raw Materials Risks Jeopardising the Green Transition”, April 2023, https://www.oecd.org/newsroom/supply-of-critical-raw-materials-risks-jeopardising-the-green-transition.htm. 73
  74. IEA, “Renewable Energy Market Update – June 2023”, op. cit. note 9.74
  75. C40, “How to win support for local clean energy”, September 2021, https://www.c40knowledgehub.org/s/article/How-to-win-
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  76. Ibid.76
  77. B.K. Sovacool et al., “Conflicted Transitions: Exploring the Actors, Tactics and Outcomes of Social Opposition Against Energy Infrastructure”, Global Environmental Change, Vol. 73, (March 2022), p. 102473, https://doi.org/10.1016/j.gloenvcha.2022.102473.77
  78. BP, op. cit. note 5; Energy Institute in partnership with KPMG and KEARNEY, op. cit. note 41; Ember, op. cit. note 34.78
  79. BP, op. cit. note 5; Ember, op. cit. note 34.79
  80. Energy Institute in partnership with KPMG and KEARNEY, op. cit. note 41.80
  81. BP, op. cit. note 5.81
  82. Energy Institute in partnership with KPMG and KEARNEY, op. cit. note 41. 82
  83. Ibid.83
  84. Ember, op. cit. note 34.84
  85. Wiatros-Motyka, op. cit. note 33.85
  86. Sidebar 1 from the following sources: BloombergNEF, “Tech Firms Seal US Dominance in Corporate Clean Power Purchasing”, March 17, 2023, https://about.bnef.com/blog/tech-firms-seal-us-dominance-in-corporate-clean-power-purchasing; American Clean Power (ACP), "Clean Energy Investing in America", 2023, https://cleanpower.org/wp-content/uploads/2023/05/CleanEnergy_ImpactReport_230505.pdf. Figure 6 from BloombergNEF, “Corporations Brush Aside Energy Crisis, Buy Record Clean Power”, February 9, 2023, https://about.bnef.com/blog/corporations-brush-aside-energy-crisis-buy-record-clean-power.86
  87. Ember, op. cit. note 34.87
  88. Energy Institute in partnership with KPMG and KEARNEY, op. cit. note 41.88
  89. REN21, op. cit. note 15.89
  90. Deloitte, “2023 Renewable Energy Industry Outlook”, 2023, https://www2.deloitte.com/content/dam/Deloitte/us/Documents/energy-resources/us-eri-renewable-energy-outlook-2023.pdf; Anadolu Ajansı, “Renewables Set to Break New Record in 2022 Despite Supply Chain Challenges”, May 11, 2022, https://www.aa.com.tr/en/economy/renewables-set-to-break-new-record-in-2022-despite-supply-chain-challenges/2584641. 90
  91. Ibid.91
  92. Ibid.92
  93. Ibid.93
  94. Ibid.94
  95. REN21, op. cit. note 15.95
  96. Wiatros-Motyka, op. cit. note 33; Global Energy Monitor, “China Permits Two New Coal Power Plants per Week in 2022”, February 26, 2023, https://globalenergymonitor.org/press-release/china-permits-two-new-coal-power-plants-per-week-in-2022. 96
  97. Ibid. 97
  98. Ibid. 98
  99. Ibid.99
  100. IEA, “The State of Clean Technology Manufacturing. An Energy Technology Perspectives Special Briefing”, 2023, https://iea.blob.core.windows.net/assets/baa765ac-27c7-42ba-9eba-73717359de23/TheStateofCleanTechnologyManufacturing.pdf. 100
  101. Ibid.101
  102. Ibid.102
  103. Ibid.103
  104. IEA, “Energy Technology Perspectives 2023”, op. cit. note 9.104
  105. IEA, op. cit. note 100.105
  106. Energy Transitions Commission, op. cit. note 9.106
  107. McKinsey, op. cit. note 9.107
  108. IEA, op. cit. note 100.108
  109. McKinsey, op. cit. note 9.109
  110. Eco Green Energy, “PV Industry Price Trends”, April 2023, https://www.eco-greenenergy.com/pv-industry-price-trends-april-2023.110
  111. Global Wind Energy Council, “Global Wind Report 2023”, 2023, https://gwec.net/globalwindreport2023. 111
  112. Ibid.112
  113. Ibid.113
  114. op. cit. note 100. 114
  115. Ibid.115
  116. Ibid.116
  117. IRENA, “Renewable Energy and Jobs: Annual Review 2022”, September 2022, https://www.irena.org/publications/2022/Sep/Renewable-Energy-and-Jobs-Annual-Review-2022.117
  118. Ibid.118
  119. McKinsey, “Renewable Development: Overcoming Talent Gaps”, https://www.mckinsey.com/industries/electric-power-andnatural-gas/our-insights/renewable-energy-development-in-anet-zero-world-overcoming-talent-gaps, accessed June 30, 2023.119
  120. Ibid.120
  121. Figure 7 from REN21 Policy Database. See GSR 2023 Data Pack, available at www.ren21.net/gsr2023-data-pack/go.121
  122. REN21 Policy Database. See GSR 2023 Data Pack, available at www.ren21.net/gsr2023-data-pack/go.122
  123. Ibid.123
  124. D. Gibb, S. Thomas and J. Rosenow, “Metrics Matter: Efficient Renewable Heating and Cooling in the Renewable Energy
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  125. European Parliament, “Renewable Energy Directive – Amendments Adopted in Sept 2022”, September 14, 2022, https://www.europarl.europa.eu/doceo/document/TA-9-2022-0317_EN.pdf.125
  126. R. Lowes et al., “A Policy Toolkit for Global Mass Heat Pump
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  127. Chinese Ministry of Housing and Urban-Rural Development, “14th Five-Year' Building Energy Efficiency and Green Building Development Plan”, 2021, https://www-mohurd-gov-cn.translate.goog/gongkai/fdzdgknr/zfhcxjsbwj/202203/20220311_765109.html. 127
  128. IEA, “World Energy Outlook 2022”, op. cit. note 1.128
  129. Ibid.129
  130. M. Vitorino, “Portugal Sets New Goals for Renewable Energy Consumption”, Lexology.com, December 12, 2022, https://www.lexology.com/library/detail.aspx?g=fe7c9067-8562-475a-bcb9-399b9a6fe73c; Dutch Emission Authority, "Renewable Energy for Transport 2022-2030", 2023, https://www.emissionsauthority.nl/topics/general---renewable-energy-for-transport; European Renewable Ethanol, "Overview of Biofuels Policies and Markets Across the EU", October 2022, https://www.epure.org/wp-content/uploads/2022/10/221011- DEF-REPOverview-of-biofuels-policies-and-markets-across-the- EUOctober-2022.pdf. 130
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  132. International Air Transport Association, “Fact Sheet: EU and US Policy Approaches to Advance SAF Production”, 2021, https://www.iata.org/contentassets/d13875e9ed784f75bac90f000760e998/fact-sheet---us-and-eusaf-policies.pdf. 132
  133. European Council, “ETS Aviation: Council and Parliament Strike Provisional Deal to Reduce Flight Emissions”, https://www.consilium.europa.eu/en/press/press-releases/2022/12/07/ets-aviation-council-and-parliamentstrike-provisional-deal-to-reduce-flight-emissions, accessed December 18, 2022.133
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  135. Ibid.135
  136. IEA, “World Energy Outlook 2022 Shows the Global Energy Crisis Can Be a Historic Turning Point Towards a Cleaner and More Secure Future”, October 27, 2022, https://www.iea.org/news/world-energy-outlook-2022-shows-the-global-energy-crisis-can-be-a-historic-turning-point-towards-a-cleaner-and-more-secure-future. 136
  137. REN21 Policy Database. See Reference Table R4 in GSR 2023 Renewables in Energy Supply Data Pack, available at www.ren21.net/gsr2023-data-pack/supply.137
  138. Ibid. See Reference Table R5.138
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  145. Figure 8 based on Climate Watch and various sources compiled in the REN21 Policy Database. See Reference Table R8 in GSR 2023 Global Overview Data Pack, available at www.ren21.net/gsr2023-data-pack/go.145
  146. Ibid.146
  147. Ibid.147
  148. IEA, “Carbon Neutrality and Green Growth Act for the Climate Change”, 8 November 2021, https://www.iea.org/policies/14212-carbon-neutrality-and-green-growth-act-for-the-climate-change. 148
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  152. Ibid.152
  153. Ibid.153
  154. Ibid.154
  155. Ibid.155
  156. Ibid.156
  157. European Commission, “Carbon Border Adjustment Mechanism”, https://taxation-customs.ec.europa.eu/green-taxation-0/carbon-border-adjustment-mechanism_en, accessed May 2, 2023.157
  158. World Bank, op. cit. note 150.158
  159. Ibid. 159
  160. IEA, “General Law of Climate Change (Mexico) – Policies”, https://
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  164. Ibid.164
  165. Ibid.165
  166. Ibid.166
  167. Ibid.167
  168. Ibid.168
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  209. M. Emmerich and K. Loeffler, personal communications with REN21, March 8, 2022.209
  210. Ibid.210
  211. Environment, London School of Economics and Political Science, “India Becoming a Sustainable Finance Maker”, February 17, 2023, https://www.lse.ac.uk/granthaminstitute/news/india-becoming-a-sustainable-finance-maker; M. Banks, “Turkey Is Defeating Inflation Through Production, Says Turkish Minister of Treasury and Finance”, Eureporter, January 27, 2023, https://www.eureporter.co/world/turkey/2023/01/27/turkiye-is-defeating-inflation-through-production-says-turkish-minister-of-treasure-and-finance; E. El Mrabet, “The Road to COP28”, Economy Middle East, June 15, 2023, https://economymiddleeast.com/news/the-road-to-cop28; Center for Macroeconomic Policy and Forecasting (CIEM), “Green Taxonomy for Green Credit and Green Bond”, http://gizmacro.ciem.org.vn/tin-tuc/1499/green-taxonomy-for-green-credit-and-green-bond, accessed July 3, 2023.211
  212. Climate Bonds Initiative, “Peru Sustainable Finance – State of the Market 2022”, September 2022, https://www.climatebonds.net/files/reports/cbi_peru_sotm_2021_03d.pdf.212
  213. Financial Supervisory Commission Republic of China (Taiwan), “Important Measures-FSC, EPA, MOEA, MOTC, and MOI Jointly Issue ‘Taiwan Sustainable Taxonomy' to Encourage Financial Institutions to Support Enterprises Transition towards Sustainable and Low-Carbon Economy-Financial Supervisory Commission”, January 11, 2023, https://www.fsc.gov.tw/en/home.jsp?id=74&parentpath=0,2&mcustomize=multimessage_view.jsp&dataserno=202301110004&dtable=Bulletin. 213
  214. Hong Kong Monetary Authority, “Cross-Agency Steering Group Announces Launch of Information and Data Repositories and Other Progress in Advancing Hong Kong's Green and Sustainable Finance Development”, June 21, 2022, http://www.hkma.gov.hk/eng/news-and-media/press-releases/2022/06/20220621-5.214
  215. Emmerich and Loeffler, op. cit. note 209.215
  216. D. Thur, “Green Taxonomies Around the World: Where Do We Stand?” ECOFACT, November 1, 2022, https://www.ecofact.com/blog/green-taxonomies-around-the-world-where-do-we-stand.216
  217. International Platform on Sustainable Finance, “Common Ground Taxonomy – Climate Change Mitigation Instruction Report”, December 2021, https://finance.ec.europa.eu/system/files/2021-12/211104-ipsf-common-ground-taxonomy-instruction-report-2021_en.pdf. 217
  218. International Platform on Sustainable Finance, “Common Ground Taxonomy – Climate Change Mitigation Instruction Report”, June 3, 2022, https://finance.ec.europa.eu/system/files/2022-06/220603-international-platform-sustainable-finance-common-ground-taxonomy-instruction-report_en.pdf. 218
  219. ASEAN Taxonomy Board, “ASEAN Taxonomy for Sustainable Finance, Version 2”, March 2023, https://www.sfinstitute.asia/wp-content/uploads/2023/03/ASEAN-Taxonomy-Version-2.pdf.219
  220. UNDP, “Building a Common Framework of Sustainable Finance Taxonomies in Latin America and the Caribbean”, June 7, 2022, https://www.undp.org/latin-america/press-releases/building-common-framework-sustainable-finance-taxonomies-latin-america-and-caribbean. 220
  221. C. Gardes-Landolfini, personal communication with REN21, February 21, 2023. Statement reflects personal opinion and does not reflect the broader opinion of the International Monetary Fund.221
  222. Ibid.222
  223. IMF Climate Finance Policy Unit, “ESG Monitor Q4 2021”, February 8, 2022, https://www.imfconnect.org/content/dam/imf/News%20and%20Generic%20Content/GMM/Special%20Features/ESG%20Monitor%20Q4%202021.pdf. 223
  224. C. Harrison, “Green Bond Pricing in the Primary Market H2 2022”, Climate Bonds Initiative, March 2023, https://www.climatebonds.net/files/reports/cbi_pricing_h2_2022_01c.pdf.224
  225. IMF Climate Finance Policy Unit, “Climate Finance Monitor Q4 2022”, February 1, 2023, https://www.imfconnect.org/content/dam/imf/News%20and%20Generic%20Content/GMM/Special%20Features/Climate%20Finance%20Monitor%20Q4%202022.pdf. 225
  226. Ibid.226
  227. Ibid.227
  228. Harrison, op. cit. note 224.228
  229. Ibid.229
  230. OECD, “ESG Investing and Climate Transition, Market Practices, Issues and Policy Considerations: OECD Business and Finance Outlook, 6th edition”, 2020, https://doi.org/10.1787/eb61fd29-en.230
  231. IMF Climate Finance Policy Unit, op. cit. note 225.231
  232. Ibid.; Skadden, Arps, Slate, Meagher & Flom LLP, “ESG in 2022 and
    Predictions for 2023”, February 1, 2023, https:// www.skadden.com/
    insights/publications/2023/02/esg-in-2022-and-predictions-for-2023    . 232
  233. Emmerich and Loeffler, op. cit. note 209.233
  234. MSCI, “ESG Investing: ESG Ratings”, https://www.msci.com/our-solutions/esg-investing/esg-ratings, accessed February 24, 2023; C. Simpson, A. Rathi and S. Kishan, “The ESG Mirage”, Bloomberg, December 10, 2021, https://www.bloomberg.com/graphics/2021-what-is-esg-investing-msci-ratings-focus-on-corporate-bottom-line. 234
  235. M. Taeger, “‘Double Materiality': What Is It and Why Does It Matter?” Grantham Research Institute on Climate Change and the Environment, April 21, 2021, https://www.lse.ac.uk/grantham-institute/news/double-materiality-what-is-it-and-why-does-it-matter; Emmerich and Loeffler, op. cit. note 209.235
  236. Emmerich and Loeffler, op. cit. note 209.236
  237. OECD, op. cit. note 230.237

Economic & Social Value Creation | Investment

Investment

Local Supply Chains

Trends in renewable energy spending indicate a widening gap between advanced economies and the developing world. Although emerging and developing economies account for two-thirds of the world's population, they represent only one-fifth of global investment in renewables and one-tenth of global financial wealth. 78 Annual investment across all areas of the energy sector in emerging and developing countries has fallen by around 20% since 2016, and these markets face debt and equity costs that are up to seven times higher than in the United States or Europe. 79

Among developed country advancements, developers in the United States can take advantage of investment credits and tax breaks under the Inflation Reduction Act that are worth up to 30% of the total project cost. 80 More than USD 70 billion in investment in clean technology manufacturing was announced between the Act's passage in August 2022 and late May 2023. 81 In Canada, the 2023 budget proposes a tax credit of 30% of the cost of any investment in new clean technology manufacturing. 82

Also in 2023, the Africa Renewable Energy Manufacturing Initiative (AREMI) was launched with the aim of scaling up renewable energy manufacturing capabilities in Africa. The initiative aims to unlock up to USD 850 million in investments to advance a renewable energy manufacturing ecosystem across the continent. 83 The European Investment Bank agreed to invest USD 544 million in Namibia for the development of local mining and renewable hydrogen value chains, while modernising industrial capacities and driving socio-economic development in the country. 84

In Asia, the Export-Import Bank of Korea announced an investment of USD 5 billion in loans and guarantees to advance domestic battery manufacturing. 85 In Japan, the Green Transformation initiative will direct up to USD 1.8 billion in subsidies for battery manufacturing. 86 Australia's National Reconstruction Fund, adopted in March 2023, will dedicate up to USD 2 billion to domestic manufacturing of solar PV, batteries, wind components and electrolysers. 87

Distributed Renewables for Energy Access

The economic and social benefits of renewable energy are most apparent in the field of distributed renewables for energy access. DREA systems, which operate outside of a centralised electricity grid, provide basic services such as lighting and mobile charging that can have transformative effects on off-grid communities, breaking their dependence on costly fossil fuels and enhancing their social, environmental and financial resilience. 88 DREA is key in most regions to advancing progress towards Sustainable Development Goal 7 on clean energy. 89 Off-grid solar technologies are expected to be the least-cost solution for 41% of new household connections between 2020 and 2030. 90

Cumulative investment in mini-grids for energy access rose from around USD 13 billion in 2018 to USD 16 billion in 2021. 91 In some countries, however, the higher costs of mini-grid components, linked with currency depreciation, have made investments in DREA projects less appealing to investors.

Solar PV products dominate the market for off-grid renewable energy solutions, accounting for 92% of overall investments between 2010 and 2021, with solar home systems being the most-funded technology. 92 Investment in off-grid solar PV solutions increased 63% in 2022 to reach an all-time high of USD 746 million. 93 Cumulatively, the off-grid solar sector has attracted around USD 3.1 billion; however, an additional USD 23.3 billion in investment is required to achieve basic universal access to electricity. 94 While the off-grid solar sector showed strong investment growth in 2022, the number of companies investing in the sector declined, with just a handful of prominent companies driving the overall increase in investment (such as Sun King, with USD 330 million in investment). 95

Sub-Saharan Africa remains the primary destination for off-grid investment, attracting USD 2.2 billion between 2010 and 2021, or around 70% of the worldwide total. 96

Project Financing

Because many mini-grid and off-grid renewable energy projects in developing countries are not yet commercially viable, there remains a prevalent need for grants and funding schemes. The main actors in financing energy access globally are the United Nations Development Programme, the Green Climate Fund (GCF) and the World Bank, with billions of dollars in pledged projects. Although the GCF focuses mainly on climate adaptation projects, its Energy Generation and Access programme comprises 61 projects with total financing of USD 3 billion. 97

In November 2022, the World Bank announced a new initiative to promote private investment in distributed renewables, calling for joint action by governments, private investors and development agencies to accelerate the pace of electrification in Sub-Saharan Africa. 98 The World Bank has an active portfolio of USD 2.7 billion for DREA, targeting electrification for around 40 million people. 99 In 2022, seven donor agencies provided total grant funding of USD 11 million for off-grid solar projects. 100 The Rwandan government's results-based financing approach, known as “RBF Window 5”, launched a subsidy for low-income households in off-grid areas in 2020, which reduces the price of a solar home system by 45-90%; by April 2023, the programme had connected some 281,139 off-grid households. 101

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Business Models and Finance Modalities

The emergence of distributed renewable energy has turned electricity users into “prosumers” who not only consume electricity but also produce, store and supply it back to the grid, empowering them to actively participate in electricity markets. This creates a variety of challenges for transmission and distribution system operators, requiring associated investments to make network balancing services more flexible. However, this also represents an opportunity to introduce innovative business models that can foster further deployment of renewable energy projects. 102 (See Snapshot: Germany.)

Snapshot.GERMANY

The Community Benefits of Wind Farms, Beyond Electricity

Mörsdorf, a village around 100 kilometres west of Frankfurt in Germany, has become a successful tourist attraction in recent years. This would not have been possible without the long-term income that community renewable energy projects bring to the village. Hundreds of thousands of people come every year to see and walk over a bridge suspended almost 100 metres above ground. The bridge was constructed for EUR 1.2 million
(USD 1.3 million), and visitors can gain insights into wind energy and the development of the project that powers the village.

Read more Collapse

The Community Benefits of Wind Farms, Beyond Electricity

Mörsdorf, a village around 100 kilometres west of Frankfurt in Germany, has become a successful tourist attraction in recent years. This would not have been possible without the long-term income that community renewable energy projects bring to the village. Hundreds of thousands of people come every year to see and walk over a bridge suspended almost 100 metres above ground. The bridge was constructed for EUR 1.2 million
(USD 1.3 million), and visitors can gain insights into wind energy and the development of the project that powers the village.

Mörsdorf produces three times more electricity than it consumes (exclusively from renewables, mainly wind power and solar PV).
In 2021, the plant produced 337% more than the electricity demand of the village. Although the wind farms are owned by external companies, they are installed on municipal land, bringing in EUR 7.8 million (USD 8.3 million) annually from rents and taxes.

Source: See endnote 102 for this module.

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During 2010-2021, Sub-Saharan Africa attracted USD 2.2 billion of off-grid investment or 70% of the worldwide total.

Aggregation of distributed renewable energy enables smaller producers to access wider electricity markets. With the help of aggregators, these producers can combine their individual distributed projects to attain a similar capacity to that of a conventional power plant and sell that electricity in the wholesale market. Such ancillary services are important to ensure the stability of the power network and thus contribute to the system's flexibility, enabling smoother integration of distributed renewables.

Peer-to-peer energy trading creates a platform for distributed renewable energy producers that facilitates peer-to-peer transactions. This enables prosumers to sell their electricity to local consumers, creating additional revenue and increasing resilience due to a long-term income stream. For example, a school with a solar PV solution can sell its excess electricity to local consumers during weekends and summer holidays.

The pay-as-you-go (PAYGo) model replaces fixed regular payments with payments for the direct use of a service, often combined with a package of appliances associated with electricity supply. PAYGo models encourage controlled energy use and increase agency over one's energy spending. The model favours deployment of distributed renewables, as payments can be made in smaller amounts and in off-grid areas. Dominant companies in the off-grid solar field and their offerings include the following:

• M-KOPA, which operates in East Africa, uses a PAYGo approach to offer three sizes of solar home systems and solar fridges for small businesses, as well as smartphones. For customers who have made reliable payments on a PAYGo product, the company also offers services such as clean biomass cookstoves, entertainment packages, and financial services such as cash loans and hospital packages. 103

• Green Planet / Sun King is primarily a retail and maintenance company that manufactures solar home systems and also offers appliances. Its service centres are based in India, but the company is looking for distributors in Africa. 104

• Zola offers a hardware solution with modular and versatile solar power, storage and inverter packages at several scales. In addition, it offers a software solution that generates data for both the customer and the distributor to monitor the fleet of operational devices. The company is looking for distributors in Africa. 105

• d.light uses its PAYGo Atlas platform to enable customer management and payment processing for a range of smart solar appliances connected to the platform. It also provides access to mobile phones, which host the mobile payment solution and can be recharged through the solar appliances. The company relies on distribution partners that operate local sales networks. 106

Community-owned projects enable a community to own a distributed renewable energy project in its vicinity, decreasing capital costs per person and avoiding the need for an external investor. This creates local value for the community with an additional revenue stream, as excessive electricity can be sold to the grid.

As of end-2022, 13 US states had programmes to support community solar projects.

Energy communities are citizen-driven groups that organise collectively owned renewable energy projects. They offer a variety of benefits such as lowering energy bills for households, increasing energy efficiency and creating local job opportunities. 107 Energy communities enable citizens to directly participate in the energy transition and to benefit from the energy savings, increasing overall community engagement and societal support of renewable energy projects.

Energy communities can take the form of a legal entity such as a co-operative, association or non-governmental organisation. Some governments have sought to update energy regulation to allow for their future development. The Australian government, as part of its 2022 Climate Change Law, committed AUD 102.2 million (USD 70 million) to the Community Solar Banks Initiative. 108

In 2023, the US Department of Agriculture announced USD 9.7 billion for rural co-operatives to create renewable energy, zero-emission and carbon capture systems through the Empowering Rural America programme. 109 In 2022, California enacted legislation authorising regulators to define a new community programme for the state. 110 By year's end, 13 US states had programmes to support community solar projects. 111 The US National Community Solar Partnership issued a roadmap for reaching 5 million community solar households by 2025. 112

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  2. Energy Sector Management Assistance Program (ESMAP), “A Sure Path to Renewable Energy: Maximizing Socioeconomic Benefits Triggered by Renewables”, World Bank, 2022, https://esmap.org/sites/default/files/esmap-files/Maximizing%20Socioeconomic%20Benefits%20Triggered%20by%20Renewables_Nov16-22.pdf; Borbonus, op. cit. note 1.2
  3. International Renewable Energy Agency (IRENA), “Renewable Energy and Jobs – Annual Review 2022”, 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Sep/IRENA_Renewable_energy_and_jobs_2022.pdf. 3
  4. Borbonus, op. cit. note 1.4
  5. Ibid.5
  6. World Health Organization (WHO), “Energizing Health: Accelerating Electricity Access in Health-care Facilities”, 2023, https://www.who.int/publications/i/item/9789240066960. Snapshot: Tanzania from the following sources: WHO, idem; Shine, “Celebrating the Success of Small Grants”, https://theshinecampaign.org/celebrating-the-success-of-small-grants-lessons-from-two-organizations, accessed April 2023; Daily News, “How Solar Power Improves Health Services in Off-grid Rural Areas”, April 3, 2023, https://dailynews.co.tz/how-solar-power-improves-health-services-in-off-grid-rural-areas; World Bank, “Changing Lives and Livelihoods in Tanzania, One Electricity Connection at a Time”, June 28, 2022, https://www.worldbank.org/en/news/feature/2022/06/28/changing-lives-and-livelihoods-in-tanzania-one-electricity-connection-at-a-time.6
  7. Global Women Energy Network, “Powering a Gender-Just Energy Transition”, 2023, https://www.globalwomennet.org/wp-content/uploads/2023/03/FINAL_230315_GGKP_Gender_Report13_0.pdf.7
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  11. Bluegreen Alliance, “9 Million Jobs from Climate Action: The Inflation Reduction Act”, 2022, https://www.bluegreenalliance.org/site/9-million-good-jobs-from-climate-action-the-inflation-reduction-act. 11
  12. The White House, “Fact Sheet: The Inflation Reduction Act Supports Workers and Families”, 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/19/fact-sheet-the-inflation-reduction-act-supports-workers-and-families.12
  13. Clean Energy Canada, “The New Reality”, 2021, https://cleanenergycanada.org/wp-content/uploads/2021/06/Report_CEC_CleanJobs2021.pdf. 13
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  15. European Commission, “Pact for Skills: Launch of Large-Scale Renewable Energy Skills Partnership”, 2023, https://energy.ec.europa.eu/news/pact-skills-launch-large-scale-renewable-energy-skills-partnership-2023-03-21_en. 15
  16. M. Merdekawati et al., “Job Creation Towards Achieving the Regional Renewable Energy Target”, 2022, https://aseanenergy.sharepoint.com/PublicationLibrary/Forms/AllItems.aspx?id=%2FPublicationLibrary%2F2022%2FPublication%202022%2FPB%2006%202022%2Epdf&parent=%2FPublication
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  18. Malabo Montpellier Panel, “Policy Innovations to Power the Transformation of Africa's Agriculture and Food System”, 2019, https://www.mamopanel.org/media/uploads/files/ENERGIZED_Report.pdf. 18
  19. A. Nnamani, “Nigeria's Solar Power Project to Create 250,000 Jobs, Electrify 5 Million Homes by 2023 – Osibanjo”, The Sun, October 7, 2021, https://sunnewsonline.com/nigerias-solar-power-project-to-create-250000-jobs-electrify-5-million-homes-by-2023-osibanjo. 19
  20. Ford, op. cit. note 14. 20
  21. Ibid. 21
  22. World Resources Institute, “Spain's National Strategy to Transition Coal-Dependent Communities”, December 23, 2021, https://www.wri.org/update/spains-national-strategy-transition-coal-dependent-communities. 22
  23. World Resources Institute, “Scotland: Re-skilling through the Oil and Gas Transition Training Fund”, 2021, https://www.wri.org/update/scotland-re-skilling-through-oil-and-gas-transition-training-fund23
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  25. IEA, “Skills Development and Inclusivity for Clean Energy Transitions”, 2022, https://iea.blob.core.windows.net/assets/
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  29. Ibid. 29
  30. Government of Canada, “Green Jobs in Natural Resources”, 2013,
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  31. European Commission, “A Green Deal Industrial Plan for the Net-Zero Age”, 2023, https://commission.europa.eu/system/files/2023-02/COM_2023_62_2_EN_ACT_A%20Green%20Deal%20Industrial%20Plan%20for%20the%20Net-Zero%20Age.pdf; UK Government, “Offshore Wind Sector Deal”, 2020, https://www.gov.uk/government/publications/offshore-wind-sector-deal/offshore-wind-sector-deal; A. Roy, “Empower Women to Achieve Just Energy Transition”, Observer Research Foundation, 2022, https://www.orfonline.org/expert-speak/empower-women-to-achieve-just-energy-transition. 31
  32. E. Cecelski and S. Oparaocha, “The Lack of Gender Targets for Clean Energy Is Harming Women and Girls”, SDG Action, 2023, https://sdg-action.org/the-lack-of-gender-targets-for-clean-energy-is-harming-women-and-girls. 32
  33. Ibid. 33
  34. IEA, op. cit. note 25. 34
  35. Ibid. 35
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  44. International Trade Administration, “Brazil – Country Commercial Guide”, March 27, 2023, https://www.trade.gov/country-commercial-guides/brazil-energy.44
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  46. JMK Research and Institute for Energy Economics and Financial Analysis, “India's Photovoltaic Manufacturing Capacity Set to Surge”, 2023, https://jmkresearch.com/renewable-sector-published-reports/indias-photovoltaic-manufacturing-capacity-set-to-surge. 46
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  51. BloombergNEF, “Energy Transition Investment Trends”, January 2023, https://about.bnef.com/energy-transition-investment.51
  52. GOGLA, op. cit. note 8; IRENA, “Renewable Capacity Statistics 2023”, 2023, https://www.irena.org/Publications/2023/Mar/ Renewable-capacity-statistics-2023.52
  53. L. Cozzi et al., ”For the First Time in Decades, the Number of People Without Access to Electricity Is Set to Increase in 2022”, IEA, November 3, 2022, https://www.iea.org/commentaries/for-the-first-time-in-decades-the-number-of-people-without-access-to-electricity-is-set-to-increase-in-2022. 53
  54. IEA, “World Energy Outlook 2022”, 2022, https://iea.blob.core.windows.net/assets/830fe099-5530-48f2- a7c1-11f35d510983/WorldEnergyOutlook2022.pdf.54
  55. IEA et al., op. cit. note 10; IEA, op. cit. note 54. Figure 1 from REN21, Policy Database, see GSR 2023 Data Pack, Reference Table R1, https://www.ren21.net/gsr2023-data-pack/esvc.55
  56. IEA, op. cit. note 54.56
  57. IRENA and African Development Bank, “Renewable Energy Market Analysis: Africa and Its Regions”, 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Jan/IRENA_Market_Africa_2022.pdf.57
  58. GOGLA, op. cit. note 8.58
  59. IRENA, “Renewable Energy Targets in 2022: A Guide to Design”, 2022, https://mc-cd8320d4-36a1-40ac-83cc-3389-cdn-endpoint.azureedge.net/-/media/Files/IRENA/Agency/Publication/2022/Nov/IRENA_RE_targets_2022.pdf.59
  60. REN21, op. cit. note 55.60
  61. IEA et al., op. cit. note 10.61
  62. Ibid.62
  63. Ibid.63
  64. Government of India, Ministry of New and Renewable Energy, “Office Memorandum: Framework for Promotion of Decentralised Renewable Energy Livelihood Applications”, 2022, https://mnre.gov.in/img/documents/uploads/file_f-1644909209115.pdf.64
  65. Ibid.65
  66. Ibid.66
  67. Sustainable Energy for All, “Chilling Prospects 2022: The Role of National Cooling Action Plans in Delivering the Global Environment Agenda”, 2022, https://www.seforall.org/data-stories/role-of-national-cooling-action-plans. 67
  68. REN21, op. cit. note 55.68
  69. Ibid.69
  70. Ibid.70
  71. IEA, op. cit. note 54.71
  72. Snapshot: Haiti from the following sources: EarthSpark International, “Clean, Reliable, Grid Electricity Is Possible! Solar Powered Microgrids, Community-Led Development, and Feminist Electrification”, http://www.earthsparkinternational.org/microgrid-electricity-in-haiti.html, accessed May 14, 2023; G. Peggram, “EarthSpark; Powering Resilience in Haiti”, Mobile for Development, April 22, 2022, https://www.gsma.com/mobilefordevelopment/blog/earthspark-powering-resilience-in-haiti; US Trade and Development Agency, “Expanding Rural Electricity Access in Haiti”, March 5, 2021, https://ustda.gov/success_story/expanding-rural-electricity-access-in-haiti; United Nations Framework Convention on Climate Change, “Feminist Electrification: Ensuring Pro-Women Outcomes in Rural Energy Access | Haiti”, 2018, https://unfccc.int/climate-action/momentum-for-change/women-for-results/feminist-electrification; B. Neal and J. Mendelson, “Making Electricity More Accessible in Haiti”, Inkstick, June 10, 2022, https://inkstickmedia.com/making-electricity-more-accessible-in-haiti; A. Tisa, “Solving Energy Poverty in Haiti, EarthSpark Bridges Funding with Truss”, Miller Center for Social Entrepreneurship, July 8, 2022, https://www.millersocent.org/earthspark-solving-energy-poverty-in-haiti-bridges-funding-with-truss; World Bank, “Open Data”, https://data.worldbank.org, accessed May 14, 2023.72
  73. Clean Cooking Alliance, “Women and Clean Cooking”, https://cleancooking.org/the-issues/women-and-clean-cooking, accessed June 2, 2023.73
  74. Cecelski and Oparaocha, op. cit. note 32. 74
  75. B. Khavari et al., “A Geospatial Approach to Understanding Clean Cooking Challenges in Sub-Saharan Africa”, Nature Sustainability, Vol. 6 (2023), pp. 447-457, https://doi.org/10.1038/s41893-022-01039-8. 75
  76. United Nations Commission on Trade and Development (UNCTAD), “Commodities at a Glance: Special Issue on Access to Energy in Sub-Saharan Africa”, 2023, https://unctad.org/system/files/official-document/ditccom2023d1_en.pdf. 76
  77. Cecelski and Oparaocha, op. cit. note 32. 77
  78. IEA, “It's Time to Make Clean Energy Investment in Emerging and Developing Economies a Top Global Priority”, June 9, 2021, https://www.iea.org/news/it-s-time-to-make-clean-energy-investment-in-emerging-and-developing-economies-a-top-global-priority.78
  79. Ibid.79
  80. J. St. John, “Manufacturing vs. Deployment: The Clean Energy Tax-credit Conundrum”, Canary Media, June 7, 2023, https://www.canarymedia.com/articles/clean-energy-manufacturing/manufacturing-vs-deployment-the-clean-energy-tax-credit-conundrum. 80
  81. Ibid.81
  82. IEA, “The State of Clean Technology Manufacturing”, 2023, https://www.iea.org/reports/the-state-of-clean-technology-manufacturing.82
  83. J. Touriño Jacobo, “New Initiative Aims to Scale Up Renewable Energy Manufacturing in Africa”, PV Tech, January 23, 2023, https://www.pv-tech.org/new-initiative-aims-to-scale-up-renewable-energy-manufacturing-in-africa.83
  84. The Brief, “Namibia Set for N$9bn Renewables Funding from European Investment Bank”, November 8, 2022, https://thebrief.com.na/index.php/component/k2/item/2008-namibia-set-for-n-9bn-renewables-funding-from-european-investment-bank.84
  85. IEA, op. cit. note 82.85
  86. Ibid.86
  87. Ibid.87
  88. IRENA, “Off-grid Renewable Energy Solutions to Expand Electricity Access: An Opportunity Not to Be Missed”, 2019, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Jan/IRENA_Off-grid_RE_Access_2019.pdf.88
  89. GOGLA, op. cit. note 8. 89
  90. Ibid.90
  91. IEA, op. cit. note 54; ESMAP, “Mini-grids for Half a Billion People”, September 27, 2022, https://www.esmap.org/mini_grids_for_half_a_billion_people_the_report. 91
  92. IRENA, “Global Landscape of Renewable Energy Finance 2023”, 2023, https://www.irena.org/Publications/2023/Feb/Global-landscape-of-renewable-energy-finance-2023.92
  93. L. Fortes and D. Corbyn, “Off-grid Solar Investment Boomed in 2022 but the Sun Did Not Shine on All Companies Equally”, GOGLA, April 5, 2023, https://www.gogla.org/about-us/blogs/off-grid-solar-investment-boomed-in-2022-but-the-sun-did-not-shine-on-all-companies.93
  94. Ibid.94
  95. Ibid.95
  96. Ibid. 96
  97. Green Climate Fund, “Energy Generation and Access”, https://www.greenclimate.fund/results/energy-generation-access, accessed April 8, 2023.97
  98. World Bank, “World Bank Group Announces Major Initiative to Electrify Sub-Saharan Africa with Distributed Renewable Energy”, November 9, 2023, https://www.worldbank.org/en/news/press-release/2022/11/09/world-bank-group-announces-major-initiative-to-electrify-sub-saharan-africa-with-distributed-renewable-energy.98
  99. Ibid.99
  100. Fortes and Corbyn, op. cit. note 93.100
  101. World Bank, “Window 5 Operations Manual, Development Bank of Rwanda”, 2023, https://www.brd.rw/wp-content/uploads/2022/11/REF_Window_5_Operations_Manual.pdf.101
  102. IRENA, “Innovation Landscape for a Renewable-powered Future”, 2019, https://www.irena.org/publications/2019/Feb/Innovation-landscape-for-a-renewable-powered-future. Snapshot: Germany from the following sources: ABO Wind, “Renewables and Tourism”, https://www.abo-wind.com/uk/community/renewables-tourism.html, accessed April 10, 2023; M. Biben, “Zapadlý kout Německa bohatne z větru a slunce. Elektřiny vyrobí trojnásobek spotřeby a topí odpad”, Hospodářské noviny, November 14, 2022, https://archiv.hn.cz/c1-67131440-zapadly-kout-nemecka-bohatne-z-vetru-a-slunce-elektriny-vyrobi-trojnasobek-spotreby-a-topi-odpady.102
  103. M-KOPA, “Products”, November 14, 2020, https://m-kopa.com/products.103
  104. Sun King, “Powering Access to Brighter Lives”, https://sunking.com, accessed June 16, 2023.104
  105. ZOLA Electric, “Power Anywhere”, https://zolaelectric.com, accessed June 16, 2023.105
  106. d.light, “Solar Home Systems Outdoor & Solar Lanterns”, https://www.dlight.com, accessed June 16, 2023.106
  107. IEA, “The Role of Local Energy Communities in Clean Energy Transitions”, 2023, https://www.iea.org/events/the-role-of-local-energy-communities-in-clean-energy-transitions.107
  108. Australian Government, Department of Climate Change, Energy,
    the Environment and Water, “Powering Australia”, May 16, 2023,
    https://www.energy.gov.au/government-priorities/australias-
    energy-strategies-and-frameworks/powering-australia    .108
  109. U.S. Department of Agriculture, “Biden-Harris Administration Makes Historic, $11 Billion Investment to Advance Clean Energy Across Rural America Through Investing in America Agenda”, https://www.usda.gov/media/press-releases/2023/05/16/biden-
    harris-administration-makes-historic-11-billion-investment    .109
  110. Institute for Local Self-Reliance, “Californiaʻs Community Solar
    Program”, 2023, https://ilsr.org/californias-community-solar-program.110
  111. REN21 Policy Database, see GSR 2023 Data Pack, Reference Table R5, https://www.ren21.net/gsr2023-data-pack/esvc.111
  112. U.S. Department of Energy, “National Community Solar Partnership Targets”, https://www.energy.gov/communitysolar/national-community-solar-partnership-targets accessed June 2, 2023.112
  113. IRENA, op. cit. note 3.113
  114. Ibid.114
  115. Ibid.115
  116. Ibid.116
  117. Ibid.117
  118. Ibid.118
  119. Figure 3 from Ibid.119
  120. Ibid.120
  121. Ibid.121
  122. Ibid.122
  123. Ibid.123
  124. Ibid.124
  125. IRENA, “Solar PV Energy: A Gender Perspective”, 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Sep/IRENA_Solar_PV_Gender_perspective_2022.pdf?rev=61477241eb9e4db2932757698c554dc2. 125
  126. Ibid.; Cecelski and Oparaocha, op. cit. note 32. 126
  127. Power for All, “Powering Jobs Census 2022: The Energy Access Workforce”, 2022, https://www.powerforall.org/resources/reports/renewable-energy-jobs-sub-saharan-africa-and-india-2022-power-all. 127
  128. Ibid. 128
  129. Power for All, “Powering Jobs Census 2022: Focus on Nigeria”, 2022, https://www.powerforall.org/resources/reports/powering-jobs-census-2022-focus-nigeria; Power for All, op. cit. note 127.129
  130. IEA, op. cit. note 82. 130
  131. Ibid.131
  132. Ibid.132
  133. Ibid.133
  134. Institute for Energy Economics and Financial Analysis and JMK Research, “India's Photovoltaic Manufacturing Capacity Set to Surge”, JMK Research, 2023, https://jmkresearch.com/renewable-sector-published-reports/indias-photovoltaic-manufacturing-capacity-set-to-surge.134
  135. V. Thompson, “Maxeon's PV Module Capacity Hits 2.5 GW in Mexico”, June 27, 2023, https://www.pv-magazine.com/2023/06/27/maxeons-pv-module-capacity-hits-2-5-gw-in-mexico.135
  136. S. Enkhardt, “Germany Seeking Proposals for 10 GW of Solar
    Factories”, pv magazine, June 26, 2023, https://www.pv-magazine.
    com/2023/06/26/germany-seeking-proposals-for-10-gw-of-
    solar-factories    .136
  137. IEA, op. cit. note 82. 137
  138. Ibid.138
  139. K. Willsher, “France Opens First Electric Vehicle Battery Gigafactory”, The Guardian (UK), May 30, 2023, https://www.theguardian.com/business/2023/may/30/france-opens-first-electric-vehicle-battery-gigafactory.139
  140. Ibid.140
  141. M. Gallucci, “US Wind Manufacturing Makes a Comeback Thanks to Inflation Reduction Act”, pv magazine, June 5, 2023, https://www.canarymedia.com/articles/clean-energy-manufacturing/us-wind-manufacturing-makes-a-comeback-thanks-to-inflation-reduction-act.141
  142. Ibid.142
  143. IEA, op. cit. note 82.143
  144. Based on IEA, op. cit. note 54.144
  145. Ibid.145
  146. Ibid.146
  147. Ibid.147
  148. Ibid.148
  149. REN21, op. cit. note 55. 149
  150. IRENA, “Renewable Capacity Statistics 2023”, 2023, https://www.irena.org/Publications/2023/Mar/Renewable-capacity-statistics-2023.150
  151. Ibid.151
  152. IRENA and SELCO Foundation, “Fostering Livelihoods with Decentralised Renewable Energy: An Ecosystems Approach”, 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Jan/IRENA_Livelihood_Decentralised_Renewables_2022.pdf.152
  153. IRENA, “Off-grid Renewable Energy Statistics 2022”, 2022, https://www.irena.org/Publications/2022/Dec/Off-grid-renewable-energy-statistics-2022.153
  154. ESMAP, op. cit. note 91. Snapshot: Africa based on the following sources: United Nations Development Programme (UNDP), “Africa Minigrids Program”, 2022, https://www.undp.org/sites/g/files/zskgke326/files/2022-09/AMP-brochure-july-22-EN_0.pdf; UNDP, “Somalia Launches Ambitious Solar Minigrids Program to Increase Energy Access”, 2023, https://www.undp.org/energy/press-releases/somalia-launches-ambitious-solar-minigrids-program-increase-energy-access; UNDP, “Africa Minigrids Program”, 2022, https://www.undp.org/sites/g/files/zskgke326/files/2022-09/AMP-brochure-july-22-EN_0.pdf.154
  155. ESMAP, op. cit. note 91.155
  156. Ibid.156
  157. Ibid.157
  158. Ibid.158
  159. Ibid.159
  160. Ibid.160
  161. Based on IEA, op. cit. note 54. 161
  162. GOGLA, op. cit. note 58.162
  163. Ibid. 163
  164. Ibid. 164
  165. Based on IEA, op. cit. note 54.165
  166. Based on IEA, “Africa Energy Outlook 2022”, https://www.iea.org/reports/africa-energy-outlook-2022. 166
  167. Based on IEA, “World Energy Outlook 2021”, https://www.iea.org/reports/world-energy-outlook-2021. 167
  168. Energy Planets, “Clean Cooking Hits Record $200m Investment in 2022”, March 17, 2023, https://www.energyplanets.org/clean-cooking-hits-record-200m-investment-in-2022.168
  169. Clean Cooking Alliance, “2022 Clean Cooking Industry Snapshot”, 2023, https://cleancooking.org/wp-content/uploads/2022/05/CCA-2022-Clean-Cooking-Industry-Snapshot.pdf.169
  170. Ibid.170
  171. Ibid.171
  172. Clean Cooking Alliance, “Clean Cooking Alliance Adds Five Companies to its Venture Catalyst Program”, May 2022, https://cleancooking.org/news/clean-cooking-alliance-adds-five-companies-to-its-venture-catalyst-program.172
  173. NEFCO, “Modern Clean Cooking Facility for Africa”, https://www.nefco.int/call-for-proposals-for-modern-cooking-facility-for-africa, accessed May 2023.173
  174. Modern Cooking Facility for Africa, “What's the Future of Clean Cooking? Driving Sustainable Fuels and Innovative Business Models”, May 18, 2022, https://www.moderncooking.africa/2022/05/18/future-clean-cooking-sustainable-fuels-and-business.174
  175. Ibid. 175
  176. Ibid.176
  177. Ibid.; Inclusive Energy, “Who's Counting, Exploring If Data Pays in Biogas Carbon Projects”, 2023, https://static1.squarespace.com/static/6380a6194d1af74b3422b87f/t/642c0bff1afe2d5d297daf1a/1680608267909/230404+Who%27s+Counting_Web1.2.pdf.177
  178. Clean Cooking Alliance, op. cit. note 169.178
  179. Ibid.179
  180. ESMAP, “The State of Access to Modern Energy Cooking Services”, 2020, https://cleancooking.org/wp-content/uploads/2021/07/598-1.pdf.180
  181. IEA et al., op. cit note 10.181
  182. IRENA, “Renewable Energy Market Analysis, Africa and Its Regions”, 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Jan/IRENA_Market_Africa_2022.pdf.182
  183. Sistema, “Sistema.bio Closes Over $15MM in Financing to Scale Climate-smart Clean Energy Technology for Farmers”, 2022, https://sistema.bio/blog/2022-investment-press-release.183
  184. Ibid. 184
  185. Ibid. 185
  186. SNV, “Household Bio-digester Installations in Selected Countries in Africa and Asia in 2021”, 2022, https://a.storyblok.com/f/191310/b8ca144d18/snv-20biodigester-20status-20brief-20-28final-29.pdf.186
  187. Ibid. 187
  188. Africa Energy Portal, “Rwanda: Koko Networks to Invest $25m for Ecological Cooking”, April 4, 2022, https://africa-energy-portal.org/news/rwanda-koko-networks-invest-25m-ecological-cooking.188
  189. Koko, “Rwanda Signs Agreement with Koko”, 2022, https://rdb.rw/rwanda-signs-agreement-with-koko-to-establish-25-million-renewable-cooking-fuel-utility.189