China outshines Europe in 2017 clean power investment ranking

An aerial view of the Datong Panda Power Plant where solar panels are placed to form the pattern of a panda in Datong, Shanxi Province of China, 25 July 2017. [EPA/HOW HWEE YOUNG]

Solar power dominated a global ranking of new renewable energy investments “like never before” last year, with China accounting for more than half of the world’s new capacity, the UN said on Thursday (5 April). Investments in Europe, on the other hand, recorded a massive drop.

The world installed a record 98 gigawatts of new solar capacity in 2017, far more than the net additions of any other technology – renewable, fossil fuel or nuclear – according to new data.

The ‘Global Trends in Renewable Energy Investment 2018’ report was released on Thursday (5 April) by UN Environment, the Frankfurt School – UNEP Collaborating Centre, and Bloomberg New Energy Finance.

At $160.8 billion, solar power attracted far more investment than any other technology. China saw “an unprecedented boom” in solar that saw some 53 gigawatts added – more than half the global total – with $86.5 billion invested.

‘’China’s clean energy push is impressive and good news for the planet,” said trade association SolarPower Europe, citing “a near 80% reduction in cost” as one of the main factors, alongside favourable regulatory frameworks.

China eclipses Europe as 2020 solar power target is smashed

China has reached its 2020 solar power target three years ahead of schedule, after installed capacity topped well over its 105GW target. Europe has been urged to show similar ambition.

Overall, renewable energies were far ahead, at $279.8 billion, towering above new investment in coal and gas generation capacity, which reached an estimated $103 billion.

“The world added more solar capacity than coal, gas, and nuclear plants combined,” said Nils Stieglitz, President of Frankfurt School of Finance & Management. “This shows where we are heading, although the fact that renewables altogether are still far from providing the majority of electricity means that we still have a long way to go.”

Last year was the eighth in a row in which global investment in renewables exceeded $200 billion, the report said. Since 2004, the world has invested $2.9 trillion in these green energy sources.

But some regions like the United States and Europe have clearly fallen behind. In the US, investments dropped 6%, to $40.5 billion. In Europe, the fall was steeper, at 36%, to reach $40.9 billion. The biggest drops were recorded in the United Kingdom (down 65% to $7.6 billion) and Germany (down 35% to $10.4 billion).

“In countries that saw lower investment, it generally reflected a mixture of changes in policy support, the timing of large project financings, such as in offshore wind, and lower capital costs per megawatt,” said Angus McCrone, Chief Editor of Bloomberg New Energy Finance and lead author of the report.

EU warned about ‘lost decade’ for renewables as costs continue to fall

The cost of generating electricity from renewable energies is set to reach new lows worldwide, according to projections by the International Renewable Energy Association (IRENA), published on Saturday (13 January).

In Europe, green lawmakers have warned about a “lost decade” for renewables as policymakers negotiate an update to the EU’s renewable energy directive, which is considered as the cornerstone of the bloc’s clean energy policy.

EU heads of states backed a 27% target for renewables as part of the bloc’s 2030 energy and climate objectives. But critics say the decision, taken in 2014, is based on outdated figures that ignore the impressive fall in renewable energy costs that happened since.

The European Commission, the EU’s executive branch, acknowledged these shortcomings and recently came up with updated figures suggesting a 30% target for 2030 would now be achievable at comparable costs. But even that would be close to business as usual, greens argue.

WindEurope, a trade association, said “one key ingredient” to keep the European renewable industry competitive “is to raise the EU’s 2030 renewables target to 35%,” in line with the European Parliament’s demands.

SolarPower Europe agreed, saying Beijing’s clean energy push “is also a wake-up call” for Europe to raise its 2030 target to 35%, and remove trade duties in place on solar panels imported from China.

A final decision on the renewables directive is expected under the Bulgarian Presidency of the EU, which finishes on 30 June.

Fresh EU analysis makes case for higher renewables, energy saving goals

A new analysis by the European Commission’s energy directorate, seen by EURACTIV, updates existing scenarios for renewables and energy efficiency, taking into account the rapidly falling costs of solar and wind power.

Supporter

LUKOIL

LUKOIL is one of the largest publicly traded, vertically integrated energy companies in the World. The corporate mission of LUKOIL is to make the energy of natural resources serve the interests of mankind. Every day millions of consumers worldwide buy LUKOIL products, energy and heat, improving the quality of their life.

LUKOIL’s main activities are exploration and production of oil and gas, refining and marketing of petroleum products and petrochemicals, as well as power generation. In order to reduce environmental impact and make efficient use of resources, LUKOIL has developed renewable energy solutions including hydroelectric, solar and wind generation.

LUKOIL conducts its business in a responsible and sustainable way, seeking to strike a balance between socio-economic and environmental development by supporting communities, contributing to the economy and preserving the environment. The company stringently abides by the highest global environmental standards and shares the principles of the United Nations Global Compact ensuring high levels of occupational safety and health. Taking social responsibility for the efficient use of natural resources in all its earnestness and maintaining favorable environmental conditions in its business, LUKOIL is guided by the highest HSE standards. In its operations LUKOIL pursues the sustainable development principles and seeks to achieve a good balance between socio-economic and environmental development.

LUKOIL corporate governance system is based on international best practices and fully incorporates the principles of openness, regulatory requirements, fair competition, and transparency.

LUKOIL ordinary shares are admitted to the Moscow Exchange. LUKOIL depositary receipts are listed on the London and Frankfurt Stock Exchanges, as well as on the US OTC market.

Subscribe to our newsletters

Subscribe

Want to know what's going on in the EU Capitals daily? Subscribe now to our new 9am newsletter.