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28 June 2021

Weekly data: Renewable energy investment defies Covid dip

Renewables was the most attractive and resilient sector for international project finance in 2020.

By Mirela Petkova

The scale of the fall in investment activity in 2020 was without precedent. Global foreign direct investment fell from $1.5trn in 2019 to $1trn, 20% lower than in the aftermath of the 2007–09 global financial crisis.

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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Workers install solar panels at the construction site of a photovoltaic on-grid power project in China. (Photo by VCG/VCG via Getty Images)

Projects in renewable energy were not immune from the global economic shock, but they showed resilience compared with other sectors. The value of international project finance announcements was 78% lower in the oil and gas sector, but only 7% lower in renewable energy compared with 2019, shows Energy Monitor’s Weekly Data, based on UNCTAD’s World Investment Report 2021.

Other sectors also saw a significant fall in investment. International project finance deals in mining contracted by 72%, transport by 59% and telecommunications by 53%. Indeed, the relative resilience of international project finance was largely thanks to renewable energy projects, which constituted more than half of all deals in 2020.

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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