And for the first time, private sector green energy investments in Asia and Oceania (US$40.8 billion) exceeded that in the Americas ($32.3 billion).
According to the Renewable Energy Policy Network for the 21st Century (REN21), renewables accounted for 60% of newly installed capacity in Europe and more than 50% in the US.
This year or next, experts predict, “the world as a whole will add more capacity to the electricity supply from renewable than non-renewable sources”
The reports, by REN21 and the United Nations Environment Program, showed that countries with policies encouraging renewable energy had roughly doubled from 55 in 2005 to more than 100, half of them in the developing world. The policies were said to have played a critically important role in the sector’s rapid growth.
New private and public sector investments in core clean energy leapt 53% in China in 2009. China added 37 gigawatts (GW) of renewable power capacity, more than any other country.
Globally, nearly 80GW of renewable power capacity was added in 2009, including 31GW of hydro and 48GW of non-hydro capacity.
Incredibly, investment in renewable energy power capacity (excluding large hydro) in 2009 was comparable to that in fossil-fuel generation, at around $US100 billion each. When $39 billion of investment in large hydro is included, total investment in renewables exceeded that in fossil-fuel generation for the second successive year.
Investment in core clean energy (renewables, biofuels and energy efficiency) decreased by 7% in 2009, to $US162 billion.
Many sub-sectors declined significantly in money invested, including large (utility) scale solar power and biofuels.
However, there was record investment in wind power, which in 2008 accounted for $US59 billion or 45% of all financial investment in sustainable energy. In 2009, it accounted for $67 billion and its share rose to 56%.
But, when spending on solar water heaters, as well as total installation costs for rooftop solar power, are included, total investment in 2009 actually increased in 2009, bucking the economic trend.
China surpassed the US in 2009 as the country with the greatest investment in clean energy. China’s wind farm development was the strongest investment feature of the year by far, although there were other areas of strength worldwide in 2009, notably North Sea offshore wind investment and the financing of power storage and electric vehicle technology companies.
Wind power and solar photo-voltaic (PV) additions reached a record high of 38GW and 7GW respectively. Investment totals in utility-scale solar PV declined relative to 2008, partly a result of large drops in the costs of solar PV. However, this decline was offset by record investment in small-scale (rooftop) solar PV projects. Total global investment in solar PV reached $US40 billion in 2009. Grid-connected solar power has grown by an average of 60% every year for the past decade.
Biofuels ranked third after wind and solar in 2008 with $US18 billion of investment and ended up fourth in 2010 with just $7 billion. Biomass and waste-to-energy, which was fourth in 2008 with $9 billion, moved up to third in 2009 with $11 billion.
Geothermal suffered a 29% drop in financial investment in 2009, to $US2 billion.
Finally, energy-smart technologies such as power storage and energy efficiency saw a 34% rise in investment, to US$4 billion. For the first time, energy-smart technologies attracted more venture capital and private equity investment than any other clean energy sector.
