'Developing countries did better than rich ones in green power in 2015'

For the first time in history, the total investment in renewable power and fuels in developing countries in 2015 exceeded that in the developed economies, according to a report by the Renewable Energy Policy Network for the 21st Century (Ren21). 

Global new investment in renewable power and fuels zoomed to a record $285.9 billion in 2015 (excluding hydropower projects >50 MW). This represents an increase of five per cent when compared with 2014 and exceeds the previous record ($278.5 billion) achieved in 2011. Including investments in hydropower projects larger than 50 MW, the total new investment during 2015 in renewable power and fuels (not including renewable heating and cooling) was at least $328.9 billion.

The developing world, including China, India and Brazil, committed a total of $156 billion (up 19 per cent over 2014). China played a dominant role, increasing its investment by 17 per cent to $102.9 billion, accounting for 36 per cent of the global total. Renewable energy investment also increased significantly in India, South Africa, Mexico and Chile. Other developing countries investing more than $500 million in renewables in 2015 included Morocco, Uruguay, the Philippines, Pakistan and Honduras.

By contrast, renewable energy investment in developed countries as a group declined by eight per cent in 2015 to $130 billion. The most significant decrease was seen in Europe (down 21 per cent to $48.8 billion), despite the region’s record year of financing for offshore wind power ($17 billion, up 11 per cent from 2014).

In the US, renewable energy investment (dominated largely by solar power) increased by 19 per cent to $44.1 billion, the country’s largest increase in dollar terms since 2011.

Wind, solar energy  

Investment in renewable energy has been weighted increasingly towards wind and solar power. Solar power was again the leading sector by far in terms of money committed during 2015, accounting for $161 billion (up 12 per cent over 2014), or more than 56 per cent of total new investment in renewable power and fuels.

Wind power followed with $109.6 billion, or 38.3 per cent of the total (up 4 per cent). However, other categories saw investment decline relative to 2014. Investment in biomass and waste-to-energy fell by 42 per cent to $6 billion, small-scale hydropower fell by 29 per cent to $3.9 billion, biofuels fell by 35 per cent to $3.1 billion, geothermal energy fell by 23 per cent to $2 billion, and ocean energy fell by 42 per cent to $215 million.

Renewable power generating capacity

Overall, 2015 was a record year for renewable energy installations. Renewable power generating capacity saw its largest increase ever, with an estimated 147 gigawatts (GW) added. Modern renewable heat capacity also continued to rise, and renewables use expanded in the transport sector. Distributed renewable energy is advancing rapidly to close the gap between the energy haves- and have-nots.

“These results were driven by several factors. First and foremost, renewables are now cost competitive with fossil fuels in many markets,” it said.

"What is truly remarkable about these results is that they were achieved at a time when fossil fuel prices were at historic lows, and renewables remained at a significant disadvantage in terms of government subsidies. For every dollar spent boosting renewables, nearly four dollars were spent to maintain our dependence on fossil fuels, according to Christine Lins, Executive Secretary of REN21.

With increased investment came an increase in technological advances, cost reductions and jobs. There are now 8.1 million people working in the renewable energy sector — representing steady growth in stark contrast with depressed labour markets in the broader energy sector.

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