GLOBAL TRENDS IN RENEWABLE ENERGY INVESTMENT 2011

GLOBAL TRENDS IN RENEWABLE ENERGY INVESTMENT 2011 Analysis of Trends and Issues in the Financing of Renewable Energy Copyright © United Nations Environment Programme and Bloomberg New Energy Finance, 2011 This publication may be reproduced in whole or in part and in any form for HGXFDWLRQDORUQRQSURÀWSXUSRVHVZLWKRXWVSHFLDOSHUPLVVLRQIURPWKHFRS\ULJKW holder, provided acknowledgement of the source is made. UNEP would appreciate receiving a copy of any publication that uses this publication as a source. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the United Nations Environment Programme. 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Bloomberg Finance LP accepts no liability arising from use of this document or its contents. Nothing in this note constitutes or should be taken to constitute investment advice. ISBN: 978-92-807-3183-5 UNEP promotes environmentally sound practices globally and in its own activities. This publication is printed on 100% recycled paper, using vegetable -based inks and other eco-friendly practices. Our distribution policy aims to reduce UNEP’s carbon footprint. GLOBAL TRENDS IN RENEWABLE ENERGY INVESTMENT 2011 Analysis of Trends and Issues in the Financing of Renewable Energy ACKNOWLEDGEMENTS This report was commissioned by UNEP’s Division of Technology, Industry and Economic (DTIE) in copoeration with Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance and produced in collaboration with Bloomberg New Energy Finance. Concept and Editorial Oversight Angus McCrone (Lead Author, Chief Editor) Eric Usher (Lead Editor) Virginia Sonntag-O’Brien Ulf Moslener (Lead Editor) Jan G. Andreas Christine Gruening Contributors Nicole Aspinall David Strahan Vandana Gombar Victoria Cuming Rohan Boyle Kieron Stopforth Ashwini Bindingavale Coordination Angus McCrone Design and Layout Jeanne Marais Media Outreach Terry Collins Angelika Werner Thanks to the following experts who reviewed and provided feedback on the draft report: Frédéric Crampé Gunter Fischer Mark Fulton Nick Robins Michaela Pulkert Samuel Tumiwa 4 GLOBAL TRENDS IN RENEWABLE ENERGY INVESTMENT 2011 FOREWORD FROM ACHIM STEINER Investments in renewable energies, from wind and solar power to geothermal and waste-into-energy, continued their remarkable growth in 2010. A combination of stimulus package funds making their way into the market, the introduction of smart policies like feed-in tariffs and target-setting sparked a record $211 billion of investment in renewable energy. The more-than-$48 billion new investment in China merits attention in terms of scale and growth. Other highlights of this year’s report are rising investments across other parts of the developing world, and the sharp increase in investment in small-scale renewables in countries such as Germany and Italy, where predominantly rooftop solar projects surged to $60 billion-worth of investment, up over 90% from 2009. Excluding Brazil, Mexico took the lead in Latin America where investments, mainly in wind but also in geothermal, grew close to 350%, triggered in large part by a government decision to raise renewable energy capacity from 3.3% to over 7.5% by 2012. Argentina, with a target of 8% of its energy to be sourced from renewables by 2016, saw investment grow nearly seven-fold to $740 million. 2010 also saw important investment in Chile, Peru and Venezuela. In Asia, Pakistan and Thailand saw investments tripling and quadrupling respectively. In Pakistan $1.5 billion-worth of wind was financed and in Thailand $700 million-worth of investment flowed, mainly into large-scale photovoltaic projects. Significant investment is also starting to be seen in Africa, which posted the highest percentage increase of all developing regions, if the emerging economies of Brazil, China and India are excluded. In Egypt, renewable energy investment rose by $800 million to $1.3 billion as a result of the solar thermal project in Kom Ombo and a 220MW onshore wind farm in the Gulf of Zeit. In Kenya, investment climbed from virtually zero in 2009 to $1.3 billion in 2010 across technologies such as wind, geothermal, small-scale hydro and biofuels. Small but significant advances were also made in Cape Verde, Morocco and Zambia. Renewable energies are expanding both in terms of investment, projects and geographical spread. In doing so, they are making an increasing contribution to combating climate change, countering energy poverty and energy insecurity, stimulating green jobs and meeting the Millennium Development Goals. The UN climate convention in Durban later in the year, followed by the Rio+20 Conference in Brazil in 2012, offer important opportunities to accelerate and scale-up this positive transition to a low carbon, resource efficient Green Economy in the context of sustainable development and poverty eradication. Achim Steiner UN Under-Secretary General and UNEP Executive Director 5 ... - tailieumienphi.vn