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GLOBAL STATUS REPORT Renewables 2011

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GLOBAL STATUS REPORT Renewables 2011 ( global-status-report-renewables-2011 )

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02 InVeSTMenT flOwS rose $17 billion to more than $72 billion, while in OECD countries it increased less than $4 billion to $70.5 billion. China attracted $49 billion (up 28% over 2009), which was more than two-thirds of developing country investment and more than a third of global investment in renewable energy during 2010, making China the leader for the second year in a row. The United States ranked second for financial new investment, with just over $25 billion, an increase of 58% over 2009. Germany enjoyed financial new investment of $6.7 billion in 2010, but this was dwarfed by its $34.3 billion in small-scale projects, mainly rooftop solar PV. Total investment in renewable energy reached $211 billion in 2010,I up from $160 billion in 2009,II including reported asset finance, venture capital, private equity investment, public markets (stock purchases), and corporate and government research and develop- ment. (See Figure 12.) If the unreported $15 billion (estimated) invested in solar hot water collectors is included, then total investment exceeded $226 billion. An additional $40–45 billion was invested in large hydropower. If only total investment in new renewable energy capacity (excluding large hydro) is counted, the total comes to $203 billion. This $203 billion includes utility-scale asset finance (large wind farms, solar parks, and biofuel plants), distributed generation capacity (mostly rooftop solar PV less than 1 MW in size), and hot water/heating capacity. Within the overall figure, financial new invest- ment, which consists of money invested in renewable energy companies and utility-scale generation and biofuel projects, rose 17% in 2010 to $143 billion. Although total financial new investment was higher in developing countries, growth rates in a number of devel- oped countries exceeded those in some major developing economies. For example, Belgium saw an increase in investment of 40%, Canada 47%, Italy 248 %, and the United States 58%, whereas growth rates in India and Brazil were 25% and minus 5%, respectively. Italy moved from ninth to third place in global renewable energy investment as asset finance in solar PV surged on the back of generous feed-in tariffs. Increases in developing countries, as well as in the United States, were due to an increase in asset finance, dominated by wind, for which global asset finance rose by $23 billion to $90 billion. 02 figure 12. Global new Investment in Renewable energy, 2004–2010 Billion US Dollars 250 211 160 0 2004 2005 2006 2007 2008 2009 2010 200 150 130 100 103.5 50 62.8 40.9 22 The top countries for total investment in 2010 were China, Germany, the United States, Italy, and Brazil. For the first time, financial new investment in renew- able energy in developing countries surpassed that in developed economies. (Note that in the two areas not included in the financial new investment measure, namely small-scale projects and R&D, developed countries remain well ahead.) Financial new investment In Brazil, new investment dropped 5% to $7 billion. This seemingly weak performance can be explained by the fact that the focus was on consolidating the biofuel sector, so that most money went into mergers and acquisitions, which does not count as new investment. Latin America (excluding Brazil) saw the biggest absolute increase in renewable energy investment among the regions of the developing world. The largest gain within Latin America was achieved by Mexico (348%). This n Investment by Region I) This section is derived from UNEP, Global Trends in Renewable Energy Investment 2011 (Paris, 2011), the sister publication to the GSR. The figures are based on the output of Bloomberg New Energy Finance’s (BNEF) database unless otherwise noted. The following renewable energy projects are included: all biomass, geothermal, and wind generation projects of more than 1 MW, all hydro projects of between 0.5 and 50 MW, all solar power projects of more than 0.3 MW, all ocean energy projects, and all biofuel projects with a capacity of 1 million liters or more per year. BNEF defines utility-scale solar parks as greater than 500 kW in capacity. For more detail, please refer to the UNEP Global Trends report. Note that all dollar and cents figures in this report are in U.S. dollars unless otherwise indicated. China’s lead was due mainly to the growth in wind power capacity in 2010. China continued to benefit from a $46 billion “green” stimulus package, which had been announced at the height of the financial crisis in 2008. By the end of 2010, 70% of the funds had been spent, although data about the details are unclear. China also dominated public markets, with $5.9 billion (out of the total $49 billion) in new investment in renewables. India ranked eighth in the world for renewable energy investment. Investment rose 25% to $3.8 billion, domi- nated by wind power projects ($2.3 billion), followed by $400 million each for solar and biomass power (including waste-to-energy ).III II) Revised upward from $150 billion as reported in the Renewables 2010 Global Status Report. III) In this section, waste-to-energy includes all waste-to-power technologies, but not waste-to-gas. 35 RENEWABLES 2011 GlObal STaTuS RePORT

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