Renewables Sep 16, 2019 11:30 AM
Investments in this sector increased considerably during the last 10 years, but they still face some challenges.
Investments in renewable energy made since 2010 will soon reach US$2.6T, a BloombergNEF study for the UN said.
“Investing in renewable energy is investing in a sustainable and profitable future. It is clear that we need to rapidly accelerate the pace of global transition to clean energies, if we want to meet international climate and development goals,” said Inger Andersen, director of the UN’s Program for the Environment and the UNEP Center.
The expert added that wind, solar and hydroelectric projects will generate around US$322B per year until 2025, according to UNEP forecasts; almost three times what will be invested in fossil fuel plants (US$116B per year), and almost the same amount that will be invested in electrical networks.
The largest investments in the sector have been made in solar and wind farms, as the world’s solar energy capacity increased by more than 2,500% during the last 10 years, going from 25GW at the beginning of 2010, to an expected 663GW by the end of this year.
This market, however, still has some ‘cracks’, El Espectador said, explaining that the resources allocated by the governments to solar energy went down in some of the world’s biggest markets in 2018, compared to 2017 figures.
The source added that the cost of renewable technologies has been constantly falling in recent years, generating less government support for renewable energies.
“The sharp drops in the cost of electricity from wind and solar energy in recent years have transformed the choice faced by policymakers. Now, in many countries of the world, wind or solar energy is the cheapest option for electricity generation,” said executive director of BloombergNEF, Jon Moore.
Bottom-line: Although the energy sector has been rapidly advancing, it is expected that just as in other industries , there will be ‘bumps on the road’, such as less government support.
That being said, figures speak louder than words and the energy transition in Latin American countries, like Colombia, has been shaped by governmental support.
The country just welcomed 53 national and international new players that will compete in the upcoming energy tender, forecasting a high success rate.