From Guest Blogger Joshua Okomo: Year 2010 Global Investment in Green Energy Reached USD $211 Billion
According to report on global trends in renewable energy published in 2011 by Bloomberg New Energy Finance based in London, the global investment in renewable energy in 2010 was $ 211 billion, a 540 % increase from renewable energy investment accomplished globally in 2004.
Wind farms in China and small scale solar panels on roof tops in Europe comprised largely the 32 % annual rise in green energy investments in 2010. It is interesting that total new investment in all developing countries in clean energy beat the total investment in clean energy in developed countries, investment spending was utility scale renewable energy projects and provision of equity capital for renewable energy companies.
$72 billion was invested in developing countries while the developed countries invested $ 70 billion. While this trend looks impressive because all developing countries suffer energy poverty, individual country investments remains low. Notably high new investment was in China, equivalent $ 48.9 Billion annual increase of 28% and India $ 3.8 billion annual increase 25 percent.
New renewable energy investment in South and Central American countries was $ 13.1 billion with annual growth of 39 % , Middle East and African countries combined invested $ 5 billion annual growth of 104 %. New renewable energy investment in Asian developing countries excluding China and India was $ 4 billion with annual growth of 31 percent. Globally investment in research and development annually grew by 120 % to $ 5 billion. These trends are impressive, returns to green energy investments was also high owing to low prices.
During 2010, the global finance crisis was having effect on global investments but apparently financing renewable energy investment was strong, this indicates that even in a financial crisis financing renewable energy is rewarding. Europe’s small scale solar energy boomed in 2010 owing to feed-in tariffs. Investment in Germany in small distributed capacity rose by 132 % in the year to $ 34 billion, Italy it grew by 59 % to 5.5 billion, France by 150 % to 2.7 billion and Czech Republic by 163 % to 2.3 billion. The price of solar PV modules per megawatt in these markets fell by 60 % since 2008 making solar the cheapest energy.
Analysis of these trends is making the world believe that a green world is in the making. Most developing countries did good investment owing to natural green energy potentials but more needs to be done in financing and procurement. Advancing clean energy development in Africa requires public private partnerships for utility level investments and energy company equity. Financing renewable energy is still a big challenge in Africa. Markets development in renewable energy in Africa should target increasing national capacities in renewable energy plants and reaching the bottom of economic pyramid market in roof top solar panel, simple solar lamps, solar refrigerators, solar water heaters, solar pumps and solar cookers.
The bottom of the pyramid market can be developed by last mile procurement concept which involves import distribution and supply chain development. Last mile procurement is business selling to the remotest poor population clean energy for households, the income poor are poor because of energy poverty , they are globally 3 billion people without energy access most of them Africans.
