Clean Energy Spending to Double by 2020
Global spending on new renewable energy projects has increased dramatically during the last two years. According to a report by Bloomberg New Energy Finance, the annual value of installed renewable energy capacity hit a record $195 billion in 2010. By 2020, experts predict that annual clean energy investments will climb to $395 billion and eventually reach $460 billion in 2030. This translates to a 3% increase in total energy production coming from renewable energy sources.
The forecast also predicts a shift in the location of these investments. While Europe, the United States and Canada will continue to see steady project construction, much of Asia and other developing countries will contribute significantly to the rise in annual investments. India, the Middle East, Africa and Latin America are expected to show increases in spending rates of between 10% and 18%. China is expected to far surpass most countries – in just four years, it is projected to spend almost $50 billion on renewable energy projects.
Driving this investment spike is renewed excitement in many forms of renewable energy. Steep reductions in the cost of solar facilities, which ironically helped lead to the recent bankruptcy of solar power company Solyndra, is expected to spur an investment of $130 billion in solar projects over the next 20 years. Similarly, it is anticipated that emerging markets such as Australia, Turkey, Africa and Latin America will spend many of their energy dollars on onshore and offshore wind facilities.
