According to BloombergNEF, in 2019 the top 10 nations by new renewable capacity invested a combined $266 billion, out of a global total of $282.8 billion. The United States, Taiwan, Spain, the Netherlands and Brazil all increased their investment, while China, the United Kingdom and Germany saw declines.
In 2019 the top ten countries by renewable energy investment put $266 billion on the table, out of a global total of $282 billion in investment, up 1 per cent on 2018. According to data from BloombergNEF (Bnef), published in its latest report "State of clean energy investment", China, the United States and Japan were the three countries that invested the most in new renewable capacity last year. The main driver of investment growth was the race to develop offshore wind in the United States, which triggered a surge in investment of 19 per cent compared to 2018. Corporate and government research and development in the renewables sector totalled $45.7 billion in 2019, up 1 per cent.
Harminder Singh, director of energy at data and analytics company GlobalData, argues that "wind, solar and increasingly affordable storage are rapidly becoming a viable option to replace existing fossil fuel plants that are due to retire".
Although China remained the global leader in annual new renewable generation capacity, in 2019 its investment fell 8 per cent to $83.4 billion. Wind energy accounted for more than half of the funding, at $55 billion in 2019, while solar took a 33 per cent share with $25.7 billion. Investment in small hydroelectric plants, biomass, waste and biofuels rose to $5 billion from $3.8 billion the previous year.
Smart energy technologies were also caught up in the funding decline, dropping to $9.1 billion from $13.6 billion in 2018.
The United States ranks second in the renewable energy investment table, with $55.5 billion invested, up 28 per cent on 2018.
Wind energy recorded a sharp increase from $22.2 billion in 2018 to $32.1 billion over the past 12 months, while solar energy rose to $24.7 billion in 2019 from $22.1 billion the previous year.
Smart energy technologies recorded a slight increase in funding, up to $16.9 billion. Investment in biomass and waste, biofuels, geothermal and marine energy all declined.
"It is interesting to note that in this third year of the Trump presidency, a leader not known for being particularly supportive of renewable energy, US clean energy investment has set a new record high," said Ethan Zindler, head of Americas for Bnef. "These technologies are more cost-competitive than ever, and the fact that a tax credit reduction was on the horizon made the market particularly active in 2019."
In 2019 Europe slipped behind the United States, investing $54.3 billion in new renewable capacity, a fall of 7 per cent. Spain leads with $8.4 billion, up 25 per cent on 2018 and the highest annual figure recorded by Madrid since 2011.
"The $6 billion in solar investment in Spain in 2019 is impressive because these projects are going ahead at record-low costs per megawatt. Developers are building photovoltaic parks thanks to the low tariffs agreed in government auctions or, increasingly, without any financial support," commented Pietro Radoia, senior associate for solar at Bnef.
The United Kingdom invested $5.3 billion, a decline of 40 per cent and the lowest since 2007. Germany fell 30 per cent to $4.4 billion, the lowest since 2004, and Sweden dropped 19 per cent to $3.7 billion, while the Netherlands rose 25 per cent to $5.5 billion, France 3 per cent to $4.4 billion and Ukraine 56 per cent to $3.4 billion.
Japan invested $16.5 billion in renewable capacity, primarily solar, though down 10 per cent on 2018, while Australia committed $5.6 billion, a decline of 40 per cent. India invested $9.3 billion in green energy, 14 per cent less than in 2018, while the United Arab Emirates invested a record $4.5 billion, almost entirely for the 950MW Al Maktoum IV solar thermal and photovoltaic complex in Dubai.
In Latin America, Brazil increased investment in renewable energy capacity by 74 per cent to $6.5 billion last year, while Mexico committed $4.3 billion, up 17 per cent, and Chile $4.9 billion, a fourfold increase, and Argentina $2 billion, a decline of 18 per cent.
