Global new investment in renewable energy reach $358bn in the first six months of 2023, a 22% rise compared to the start of last year and an all-time high for any six-month period.
The latest investment data from BloombergNEF’s 2H 2023 Renewable Energy Investment Tracker report, reveals solar was the key driver of the stellar H1 2023 results.
A total of $239bn was invested in large- and small-scale systems, making up two-thirds of total global renewable energy investment over the first six months of the year and marking a “staggering” 43% rise compared to H1 2022.
China accounted for roughly half of all large- and small-scale solar investment in H1 2023, driven by lower module prices, a robust rooftop PV market and the commissioning of the country’s so-called energy megabases, which aim to develop large-scale wind and solar installations mainly in desert areas.
The United States was a distant second, with $25.5bn invested in large and small-scale solar during the period. However, this was an all-time record and a 75% increase from H1 2022 as supply chain constraints eased and clarity grew around the country’s Inflation Reduction Act (IRA).
In the Europe, Middle East and Africa (EMEA) region, multiple countries saw record-breaking investment including Germany, Poland and the Netherlands, with demand driven by Russia’s invasion of Ukraine and the subsequent energy crisis in Europe.
Wind power investment declined 8% compared to H1 2022, reaching $94bn in the first half of 2023.
Onshore wind investment has declined for four straight quarters. The sector received $64.5bn of investment in H1 2023, a 21% drop compared to the first half of last year.
Grid constraints, permitting challenges and faltering policy support in multiple markets are leading to a reduced global pipeline of ready-to-develop projects, which in turn is denting asset financing volumes.
China accounted for two-thirds of onshore wind investment, with $38bn invested in H1 2023.
Offshore wind investment posted a strong 47% increase relative to H1 2022, to $29.2bn over the first six months of 2023.
Europe accounted for the majority of this growth, with $9.4bn more investment in H1 2023 than in H1 2022.
According to BNEF’s New Energy Outlook, the world needs to spend a total of $8.3tn on renewable energy deployment between 2023 and 2030 to align with a global net-zero trajectory by 2050, keeping global warming well below 2°C.