L R AS Published on Monday 14 December 2020 - n° 344 - Categories:various issues around PV
Strong expansion of RE and solar installations in emerging countries in 2019
BloombergNEF presents its analysis of renewable energies in the world (the Climatescope 2020). It mainly refers to 2019 and evokes a little 2020. Last year, emerging markets absorbed a record amount of foreign direct investment,
32 billion, an increase of 33% over 2018. 2020 will be much more difficult.
Last year, the growth of renewable energy in developing economies was exceptionally bright. Photovoltaic projects reached 325 gigawatts (GW), up from just 1 GW a decade ago. The underlying cause is the cost competitiveness of these clean technologies. 84% of the 2019 total came from international project developers, utilities, commercial banks and other private sources.
The pandemic has had a devastating effect on foreign investment. Governments have sought to increase spending and have taken out loans. As a result, their currencies have devalued and their debt ratings have been downgraded. Many investors repatriated their capital to seek opportunities close to home.
Power companies have invested $249 billion worldwide in clean energy. 58% of this amount ($144 billion) was invested in emerging economies.
Solar energy is becoming ubiquitous. In 2019, three out of ten emerging markets installed more solar capacity than capacity from any other source. 69 countries built new large or small-scale solar installations in 2019 for a total of $48 billion. Solar ended 2019 with 8% of emerging markets' electricity generation capacity and 2% of production. Today, 95 markets have at least 10 megawatts (MW) of installed solar power.
Mainland China and India remain the largest emerging markets for clean energy investments. These two countries accounted for $94 billion of new investment in large wind and solar power plants, representing 76 GW of wind and solar power in 2019 (capacity figures include the construction of large power plants and small solar installations).
For the first time, renewables (including hydropower) accounted for the majority of new capacity added in the other 106 emerging markets (excluding mainland China and India). Gas-fired power plant construction has reached its lowest level in these markets since 2014, with only 17 GW added.
"The influx of capital we have seen in emerging markets suggests that investors have become fairly comfortable with the risks involved in financing new wind and solar power facilities in these countries".
Early indications for 2020 point to a slowdown in capital flows into renewable energy in emerging countries. In some quarters, capital flows to developed markets have outpaced flows to developing markets. Figures for the year as a whole will be down sharply from 2019.
Bloomberg of 9 December
