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2018 Global Renewable Energy Investment Trends Report Released China Leads The Solar Energy Investment Market
- Apr 17, 2018 -

"2018 Global Renewable Energy Investment Trends" report released China leads the solar energy investment market

      Although the global renewable energy market was once chilly and some people even expressed concern about the prospects of the renewable energy market, Jonah Greenberger, former manager of Chevron and founder of the US solar company Jonah Greenberger, said “I see the lives of poor people in Mexico. In terms of the situation, solar energy still has a large potential market, and it is difficult for the government to provide energy subsidies to all people.” Jonah insists on investing in solar energy in Mexico. The company also helps users install solar panels for free and only charges service fees. This kind of cable-like model makes some people who are not rich feel the feasibility of solar energy. Jonah hired workers to install solar panels in Mexico, which saved costs, and ultimately helped the company to benefit the company. It also demonstrated the vitality of the renewable energy market.


      Recently, the UN Environment Programme, the Frankfurt University of Economics and Business Management in Germany and Bloomberg New Energy Finance have released the annual "report card" of the global renewable energy development - "2018 Global Renewable Energy Investment Trends" report. This report makes an inventory of the performance of the global market in 2017 and again points out the great potential of sustainable energy such as solar energy and wind power.

Renewable energy investment market rebounded

      According to the “2018 Global Renewable Energy Investment Trends” report, total renewable energy investment in 2017 reached 279.8 billion U.S. dollars (excluding large-scale hydropower). This figure represents an increase of 15.8% over the $241.6 billion in 2016, which is quite embarrassing for those who once stunned the renewable energy investment market.

      In 2016, the international market was affected by policies and various factors in various countries. The amount of investment dropped by 23% year-on-year. Cold investment in renewable energy seems to insulate many investors and companies. Most of the market investment is in a wait-and-see situation.

      Obviously, the renewable energy sector has achieved a reversal trend in 2017. The report pointed out that in 2017, solar energy has dominated the global investment in new energy power generation unprecedentedly. The world-wide installed capacity of solar energy has a record increase of 98 GW (1GW = 1000000 kW), far exceeding the net increase of other power generation technologies such as renewable energy, fossil energy, and nuclear power.

      At the same time, solar power generation attracted more investment compared with other power generation technologies, which increased by 18% year-on-year to reach 160.8 billion U.S. dollars. This set of figures once again proves the great potential of the renewable energy market.

      In response, Yang Fuqiang, senior advisor on energy, environment, and climate change at the Natural Resources Defense Council (NRDC), told reporters: “There are four main factors in the market recovery. First, sustainable development of renewable energy technologies has led to lower costs and competition for renewable energy. Sex and advantages continue to be highlighted.Second, many countries and regions have recognized the prospects for the development of renewable energy and given strong national policy support.3) Some private sectors are no longer waiting to see things, but are re-understanding in the long-term. In the renewable energy market, the enthusiasm from investors has further accelerated the trend of market recovery.Fourthly, the high demands of the international community on the environment have become an important indicator in the energy sector.In order to achieve the emission reduction targets set by the parties to the Paris Agreement, the Lesser countries and regions have regarded low-pollution, low-carbon green energy as the direction of development for decades to come. These factors work together to achieve a counter-attack in the 2017 renewable energy investment market.”

China leads the solar energy investment market

      In 2017, countries around the world are more dependent on solar energy. The report shows that in 2017, solar energy accounted for 57% of total renewable energy investment, and its investment was even higher than the additional investment of approximately US$ 103 billion in installed capacity of coal and natural gas power generation. Solar energy investment has entered an unprecedented boom.

      According to Neha Mathew-Shah, representative of the American Club of the Environmental Group Sierra Claude International Climate and Energy Initiative, “The use of global coal is decreasing, which is not surprising. This trend has been accelerating over the past few years, with the cleanliness of wind energy and solar energy. The cost advantage of energy solutions exceeds the cost of fossil fuels and coal has become history. It is only a matter of time."

      In the upsurge of the international community once again embracing the solar energy, China still leads. The report pointed out that the major driving force for solar energy investment in 2017 is mainly from China. The newly added 53GW installed capacity accounted for more than half of the new installed capacity in the world, and the investment amount increased by 58% from the same period last year to 86.5 billion US dollars.

      Not only solar energy, but also the renewable energy market, China’s investment in this area in 2017 was 31% higher than 2016, reaching a record US$126.6 billion. All kinds of data show that China has become the largest renewable energy investor in the world.

      In addition to China, Australia (a year-on-year increase of 147% to US$8.5 billion), Mexico (a year-on-year increase of 810% to US$6 billion), and Sweden (a year-on-year increase of 127% to US$3.7 billion) have grown sharply as dark horses.

      The data shows that many investors are no longer fearful of the renewable energy investment market and are still watching. Although some countries and regions are not traditional strong countries for renewable energy, they have been eager to try in the past year.

      In February of this year, SpaceX’s chief executive, Elon Musk, became famous for his successful launch of a heavy Falcon Rocket. As early as last year, Musk, who is also the chief executive of Tesla, an American electric car and energy company, intends to expand his investment horizon to renewable energy.

      In July 2017, Tesla won a bid from the South Australian government to build the world's largest lithium battery power station. South Australia is a state where Australia is highly dependent on wind power. Once the project is completed, it will be of great significance to the local energy market.

      Musk promised to complete the work within 100 days of signing the grid connection agreement, otherwise the lithium battery storage system would be given to Australia without compensation.

      At present, Tesla has completed a 100-day agreement that the power plant has been delivered for use. Musk said that the lithium battery plant can provide 100 megawatts (129 MWh) of energy storage, marking the first step for Australia to have a renewable energy power station. Next, Tesla has a more "crazy" plan to build the world's largest virtual power plant in Australia.

      According to Agence France-Presse, the South Australian government has announced a new plan. Tesla will provide solar panels and Tesla batteries to 50,000 families for free, transforming residential areas into huge power plants connected to each other, thus realizing virtual power plants in phases. The construction.

Renewable Energy Meets Cold in the US Investors Still Seek Opportunities

      While some countries and regions renewed their embrace of renewable energy, investment in renewable energy in some countries declined in 2017.

      In the United States, renewable energy investment decreased by 6% year-on-year to US$40.5 billion. In Europe it decreased by 36% year-on-year to $40.9 billion. Among them, the United Kingdom decreased by 65% to US$7.6 billion, and Germany decreased by 35% to US$10.4 billion. Japan's renewable energy investment decreased by 28% to US$13.4 billion.

      Angus McCrone, editor-in-chief and chief report author of Bloomberg New Energy Finance, said: “The low investment in renewable energy in some countries mainly reflects changes in policy support and the timing of financing large-scale projects such as offshore wind power, as well as a drop in the cost of capital per megawatt. influences."

According to a draft of the Trump administration's 2019 budget drafted by The Washington Post, the White House is planning to cut the energy sector's overall funding for renewable energy and cut the clean energy research budget by 72%.

      The Trump administration’s negative attitude toward renewable energy investment has made the current US investment market flat. Yang Fuqiang said: "After Trump repealed the "clean power plan", US investors still have a conservative wait-and-see attitude under the influence of the federal government's policies. Once the federal government's tax support is lost, renewable energy sources in the United States The pace of development will continue to be hindered."

      The 1179-mile Keystone XLPipeline (Keystone Oil Pipeline) is a "stumbling block." This pipeline will connect Canada and Houston, Texas, USA and can transport 830,000 barrels of oil per day. Last year, Trump Trump asked TransCanada, a keystone pipeline developer, to resubmit a project permit application. Shortly afterwards, he approved the project.

The Indigenous Environmental Coalition (IEN), a group of indigenous environmental activists in the United States, decided to protest the restart of pipeline projects by installing solar panels on the pipeline route.

IEN said in a press release: "Solar cell arrays will be connected to the grid in Nebraska to provide clean, renewable energy for the entire state. Keystone pipelines have little benefit in Nebraska. ”

      At present, IEN has successfully raised 50,000 U.S. dollars to build the first batch of 3 solar panels. The team is now considering raising another $30,000 for the other two groups.It is not only local environmentalists but also some regional state governments that are difficult to unify with the federal government.

      The "model student" of renewable energy investment development - California has established North America's most stringent environmental policy, opening the door for renewable energy development. When California Governor Jerry Brown came to China to attend the 8th Clean Energy Ministerial Meeting, he said that although the United States withdrew from the Paris Agreement, California will continue to fulfill the specific requirements of the agreement.

      The position of the state government may be a booster for renewable energy investors. Currently, Google, the world's largest search engine, has signed contracts to purchase 3,000 megawatts of output from solar and wind farms around the world.


      Last year, Google has purchased the first batch of wind power from the Telenes wind farm in Norway. It is reported that Google and Tellenes wind farms will maintain long-term cooperation. Google's investment in wind power in Europe is still continuing.