Renewables throw off global supply chain woes to set record $226bn spend for 1H: BNEF

Renewables throw off global supply chain woes to set record $226bn spend for 1H

BloombergNEF calculated that there was a record amount of money invested in renewable energy plants in the first half of this year. This was in response to the clean power demand which has been growing due to the ongoing energy and climate crises.

In the second half of 2022, spending on solar developments hit a new high at $120 billion. This was a 33% increase from the same time period in 2021. Wind project finance also increased by 16% in the second half of 2022, reaching $84 billion.

BNEF said that, although solar and wind energy have been facing rising costs for key materials and supply chain disruptions, investor appetite is still strong. This is likely due to the high energy prices currently being seen in many markets around the world.

Albert Cheung, from the BNEF (Bloomberg New Energy Finance), said that: "Policymakers are increasingly realizing that renewable energy is the key to achieving energy security goals and reducing dependence on volatile energy commodities."

Even though the cost of things is going up and it's harder to get things, more people want clean energy. Clean energy is better for the world, so we expect this trend to continue.

China's investment in large-scale solar energy and wind energy is growing rapidly. In the first half of 2022, China's investment in large-scale solar reached $41 billion, which is 173% higher than the year before. Wind energy saw an increase of $58 billion in new spending, which is 107% higher than the same period in 2021.

Nannan Kou, from Bloomberg New Energy Finance, said that "green infrastructure" is the most important investment area for China. This is because they hope to improve their economy with this type of investment. They are also investing in new renewable energy sources so that they can replace their old coal-fired power plants.

The investment in offshore wind plants increased by 52% from the year before, reaching $32bn. The analysts say that this is due to the increase of offshore wind farms being installed. In 2022, the investments will go into new projects that will start operating in a few years.

"Offshore wind projects help companies and governments reduce their carbon emissions. The UK, France, and Germany are just a few of the countries that have increased their offshore wind targets in the first half of 2022. This signals further support for investment in the technology."

According to a research report by BNEF, there was a spending boom for solar and wind projects in the first half of this year. This was also accompanied by a record amount of venture capital and private equity investments into renewables and energy storage. However, there was a decline in investment in public equity issuances. Initial public offerings for renewable energy companies plummeted 65% in the first half of this year.