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Renewables show progress despite uncertainties
- 11 years ago (2012-06-12)
- Junior Isles
Renewable energy sources supplied 16.7 per cent of the total energy consumed in 2011, though investment into renewables was still 15 per cent lower than the $302 billion put into fossil fuels, two reports published by the United Nations Environment Programme (UNEP) and the Renewable Energy Policy Network for the 21st Century (REN21) have said.
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Renewables investment in 2011 increased 17 per cent over the 2010 figure and was up 94 per cent compared with 2007, before the financial crisis. Worldwide renewable power capacity also topped 1360 GW in 2011, an 8 per cent yearly rise, according to the two reports.
Solar power generation was 2011’s renewable energy source of choice, jumping 52 per cent to $147 billion, and attracting nearly twice as much investment as wind.
"Despite the continuing economic crisis in some key markets, and continuing political uncertainties, more renewable energy was installed last year than ever before," said Mohamed El-Ashry, chairman of REN21.
"Renewables comprised more than 25 per cent of total global power -generating capacity (estimated at 5360 GW in 2011) and supplied an estimated 20.3 per cent of global electricity."
El-Ashry also pointed to the legacy of the Fukushima disaster as spurring growth and interest in green energy: "As a result, renewable energy is spreading to more countries and regions of the globe," he said.
Despite continuing economic uncertainties across the globe, 22 more countries announced national renewable energy targets through 2011 and early 2012, bringing the total to 118.
Unfortunately, putting aside hydro, renewables still accounted only 44 per cent of all new generating capacity added worldwide in 2011. Further, these additions accounted for only 31 per cent of new power generated, due to lower capacity factors and unfavourable weather conditions, the reports said.
The reports reveal that the top seven countries for renewable electricity capacity (again, excluding large hydro) were China, the United States, Germany, Spain, Italy, India and Japan, accounting for 70 per cent of renewables capacity worldwide.
In spite of gains in renewables capacity, the reports show share prices in the sector have performed poorly in 2011 due to overcapacity in the solar and wind manufacturing chains and investor unease at support for renewables in both Europe and North America.
"Renewables are starting to have a very consequential impact on energy supply, but we're also witnessing many classic symptoms of rapid sectoral growth – big successes, painful bankruptcies, international trade disputes and more," said Udo Steffens, president of the Frankfurt School of Finance and Management.
"This is an important moment for strategic policymaking as winners in the new economy form and solidify," Steffens added.