Global renewable energy investments will account for around 70% of the $530 billion invested in new power generation by the end of 2021, according to the International Energy Agency, with the largest investments coming from China, Europe and the U.S.
Investment in power (both renewable and nonrenewable) is rebounding and will likely reach $820 billion by the year’s end. After a year of no growth in 2020, this figure represents a 5% increase in global investment in this subgroup of the energy industry.
The increase in investment is being driven by economic recovery and a wave of pledges made by the corporate sector and governments to address climate change through clean energy. It is also simply becoming more affordable to use renewable energy. “Thanks to rapid technology improvements and costs reductions,” the IEA report notes, “a dollar spent on wind and solar photovoltaic (PV) deployment today results in four times more electricity than a dollar spent on the same technologies ten years ago.”