Investment in renewable energy rise 1.8% to $174 bn in first half: BNEF

investment in renewable energy in H1 2021

Investment in renewable energy projects and companies increased 1.8 percent to $174 billion in the first half of 2021, according to BloombergNEF (BNEF).

New equity raised on public markets touched $28.2 billion in 1H 2021, while venture capital and private equity commitments to renewable energy companies reached $5.7 billion.

Investment in solar projects grew 9 percent.

Wind asset finance fell as it stands in contrast to 1H 2020, which was a bumper period for financings of major offshore wind farms.

“Renewable energy investment has withstood the effects of the global pandemic, in contrast to other sectors of the energy economy where we have seen unprecedented volatility,” Albert Cheung, head of analysis at BloombergNEF said.

Wind project investment in the first half topped $58 billion vs $85 billion invested in the same period last year. In 2020, installations surged in China and the U.S. ahead of subsidies lapsing. Investment in China, the world’s largest wind market, was $21 billion in 1H 2021. EMEA accounted for 36 percent of wind project investments.

Investment in solar projects rose to a record $78.9 billion in the first half of 2021. Solar projects in China garnered $4.9 billion in 2Q 2021, up from $2.8 billion in the first quarter. Large-scale solar project investment in the U.S. rose to $6.4 billion in 2Q 2021, from $5.3 billion in the first quarter, driven by a number of large projects closing.

Renewable energy and related companies raised $28.2 billion on public markets in the first half, up 509 percent from last year. Chinese renewable energy generator China Three Gorges Renewables raised $3.5 billion, PV manufacturer Longi Green Energy Technology raised $2.4 billion, and U.S. fuel cell company Plug Power pulled in $2 billion.

In 1H 2021, corporate M&A and private equity buyouts totaled $22.4 billion, up 25 percent on the previous year’s $17.9 billion. India outpaced the U.S. and China, which were the leading markets of 2020.