Solar power investments broke records last year, surpassing wind power investments,according to a report by energy experts.
The new report “
Global Renewable Power Investment Outlook for 2012 – Key Factors Influencing Investment Decisions” states that global renewable power investments reached $209 billion in 2011, as the industry witnessed changing geographical opportunities. Renewables recieved high investments in the US, while changing economic conditions in Europe affected available funding. However, government policies continue to prove themselves as a major factor in the renewable power market, encouraging the worldwide switch from carbon-emitting methods to clean power generation.
In 2011, solar power investments seized a huge 49% share of global renewable power investments, compared to the 34% share given to wind power. A drastic decrease in solar PV module prices, due to oversupply issues, resulted in an increase in capacity installations. Venture financing and private equity investments were also high for solar technology developments. With solar power prices approaching grid-parity, asset financing investments in this area have witnessed a higher growth rate than other renewable generation technologies.
The renewables industry is also expected to see growing investments in the Asia-Pacific region, as low-cost equipment manufacturers tempt the market with competitive pricing, while some countries in the Middle East and North Africa, such as Abu Dhabi, Dubai, Saudi Arabia, Morocco, Algeria and Jordon, are being tipped as upcoming solar power investment destinations for major market players. China looks to become a future investment giant in the solar market, as the state government has planned financing of around $100m to develop projects throughout 40 African nations, where large prospective demand markets are enabling China to expand its production targets.