Global investment in renewables totalled $226bn in the first half of 2022, setting a new record for the first six months of a year, according to BloombergNEF (BNEF).
The uptick in investment reflects an acceleration in demand for clean energy supplies to tackle the ongoing global energy and climate crises, the analyst stated.
BNEF’s latest report, the Renewable Energy Investment Tracker 2H 2022, found that Investment in new large- and small-scale solar projects rose to a record-breaking $120bn, up 33% from the first half of 2021.
Wind project financing was up 16% from 1H 2021, at $84bn.
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.
The 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, BNEF stated.
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 $9.6bn raised – up 63% on the previous year.
One category that saw falling investment was public equity issuances.
After a very strong first half in 2021, public market issuances for renewable energy companies dropped 65% in 1H 2022, totalling $10.5bn. The 2Q figure, at $3.9bn raised, is the lowest quarterly total since 2Q 2020.
Albert Cheung, head of analysis at BloombergNEF, said: “Despite the headwinds presented by ongoing cost inflation and supply chain challenges, demand for clean energy sources has never been higher, and we expect that the global energy crisis will continue to act as an accelerant for the clean energy transition.”
China’s large-scale solar investments totalled $41bn in 1H 2022, up 173% from the year before and it also invested $58bn in new wind projects, up 107% year-on-year.
Nannan Kou, BNEF’s head of China analysis, said: “Green infrastructure is the most important investment area that China is relying on to boost its weak economy in the second half of 2022.
“The investment growth trend follows China’s strategy to build new renewable generation capacity so that it can replace its existing coal fleet.
China is well on track to hit its 1200GW wind and solar capacity target by 2030.”
Offshore wind saw investment rise 52% from the previous year, to $32bn.
Chelsea Jean-Michel, offshore wind analyst at BNEF said: “Investments in 2022 will flow into projects coming online in the next few years as the offshore wind installed base is set to grow tenfold from 53GW in 2021 to 504GW in 2035.”