Solar power investments broke records last year, surpassing wind power investments, according to a report by energy experts GlobalData.
The new report* states that global renewable power investments reached $209 billion in 2011, as the industry witnessed changing geographical opportunities. Renewables recieved high investments in the US, while changing economic conditions in Europe affected available funding. However, government policies continue to prove themselves as a major factor in the renewable power market, encouraging the worldwide switch from carbon-emitting methods to clean power generation.
In 2011, solar power investments seized a huge 49% share of global renewable power investments, compared to the 34% share given to wind power. A drastic decrease in solar PV module prices, due to oversupply issues, resulted in an increase in capacity installations. Venture financing and private equity investments were also high for solar technology developments. With solar power prices approaching grid-parity, asset financing investments in this area have witnessed a higher growth rate than other renewable generation technologies.
Renewable power investments from Europe are anticipated to drop in 2012, as the region’s credit crisis continues to damage economic stability. However, North America will continue to demonstrate high investments in both solar and wind power, particularly towards the development of new wind power projects.
The renewables industry is also expected to see growing investments in the Asia-Pacific region, as low-cost equipment manufacturers tempt the market with competitive pricing, while some countries in the Middle East and North Africa, such as Abu Dhabi, Dubai, Saudi Arabia, Morocco, Algeria and Jordon, are being tipped as upcoming solar power investment destinations for major market players.
China looks to become a future investment giant in the solar market, as the state government has planned financing of around $100m to develop projects throughout 40 African nations, where large prospective demand markets are enabling China to expand its production targets. As a result, China’s solar module manufacturers are planning to increase their production capacity drastically, adding 3.6 gigawatts (GW) of module production capacity in the country by 2012.
capacity will reach 736,956.7 MW by 2020.
NOTES TO EDITORS
*Global Renewable Power Investment Outlook for 2012 – Key Factors Influencing Investment Decisions
This report provides an understanding of the global renewable power investments trends, and provides investment trends as well as market drivers for major renewable power markets, such as, the US, China, India, Germany, Italy and the UK. The report focuses on investment analysis of wind power and solar power markets, and also provides a global renewable power investment outlook for 2012.
This report is built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis by GlobalData’s team of industry experts.
GlobalData is a leading global business intelligence provider offering advanced analytics to help clients make better, more informed decisions every day. Our research and analysis is based on the expert knowledge of over 700 qualified business analysts and 25,000 interviews conducted with industry insiders every year, enabling us to offer the most relevant,reliable and actionable strategic business intelligence available for a wide range of industries
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