Analysts believe that the future of alternative energy is positive
The world gradually but purposefully moves towards a bright future of alternative energy. The impact of emissions on climate change around the world can no longer be ignored and enterprises around the world begin to actively engage in the development of renewable energy sources. Thus, in 2018, the companies invested 332.1 billion dollars in the sphere of green energy. This is 8% less when compared with 2017, but in general, analysts see great interest in this area. The decline in investment can be attributed to the tense political situation in many countries and the economic crisis. Data on the number of investments was presented by BloombergNEF. According to them, 2018 is the fifth year in a row, when investments in RES turned out to be more than $300 billion. It is noteworthy that each of the types of green technologies develops at its own pace, and the spread in investments across sectors is quite large.
What will be the future of alternative energy?
Financial investments in wind farms in 2018 showed an increase of 3% compared to 2017, and amounted to a total of almost 129 billion dollars. In addition, over the past year increased investment in the production of biological fuel (almost half, by 47% or $3 billion), the production of electricity from waste processing (by 18 percent, up to $6.3 billion) and the development of geothermal power plants (by 10 percent, up to almost $2 billion). However, there have been sectors experiencing a significant decline. Thus, investments in the use of solar electricity decreased by a quarter and amounted to $131 billion in monetary terms.
The very price of installation of 1 MW SES decreased at the same time by 12%. The total capacity of solar cells generating energy increased by 10 GW during the year. Thus, despite the decrease in funding, technology now allows to continue to reduce the cost of installation and operation of solar installations. As for small hydropower, it also experiences a decline in the last year – the flow of investments in it decreased by half and amounted to $1.7 billion.
In addition to financial statistics, BloombergNEF singled out the states in which the amount of investment in the modernization of renewable energy, smart cities, electric transport and other “green” industries amounted to more than $2 billion. The list includes Ukraine. In the state, $2.4 billion was transferred to the creation and development of environmentally friendly projects. China is still the leader in this ranking, although the dynamics in RES in China was negative last year – a decrease of 32%, compared to 2017, and the total amount of investment – $100 billion. It is interesting that despite the conservative views of trump, America is in second place in the number of investments in clean energy – 64.2 billion dollars were invested in projects of this type, which is 12 percent more than in 2017.
According to the State Agency on Energy Efficiency and Energy Saving of Ukraine, over the past 4 years, 2120 MW of new installations in alternative thermal energy have been connected, and gas consumption has decreased by a quarter.