Global investment in renewable energy totaled $226 billion in the first half of 2022, setting a new record for the first six months of a year. The uptick in investment reflects an acceleration in demand for clean energy supplies to tackle the ongoing global energy and climate crises, according to Renewable Energy Investment Tracker 2H 2022, a new report published by research firm BloombergNEF (BNEF).
Investment in new large- and small-scale solar projects rose to a record-breaking $120 billion, up 33% from the first half of 2021. Wind project financing was up 16% from 1H 2021, at $84 billion. Both sectors have been challenged recently by rising input costs for key materials such as steel and polysilicon, as well as supply chain disruptions and rising financing costs. Yet, today’s figures indicate that investor appetite is stronger than ever, in part due to the very high energy prices currently being seen in many markets around the world.
The Renewable Energy Investment Tracker summarizes BloombergNEF’s tracking of global investment in renewable energy up to and including 1H 2022, and covers both project investments and corporate fundraising. As well as seeing booming project investments, the first half also saw an all-time record for venture capital and private equity investments into renewables and energy storage, with $9.6 billion raised – up 63% on the previous year.
China posted remarkable investment growth in both wind and solar project finance. The country’s large-scale solar investments totaled $41 billion in 1H 2022, up 173% from the year before. It also invested $58 billion in new wind projects, up 107% year-on-year. Offshore wind was another sector that saw a stark increase, with investment up 52% from the previous year, to $32 billion.