Development banks finance record amount of clean energy: BNEF
Sep 11, 2013 - John Parnell - pv-tech.org
Development banks have achieved record levels of investment in the clean energy sector breaking through the US$100 billion a year mark for the first time, according to a new report.
Financing for renewables, energy efficiency and transmission infrastructure was up 19% in 2012 with Germany’s KfW, China Development Bank and the Brazilian Development Bank (BNDES) leading the way.
The Bloomberg New Energy Finance (BNEF) study found that 26 institutions had invested US$425 billion in clean energy since 2007.
Solar power has also seen investment rise from US$2.3 billion between 2007-2009 to US$9.8 billion between 2010-2012.
“This year we expect at least another 15% growth in development bank financing,” Abraham Louw, clean energy analyst. “There is potential for an even bigger increase in the longer term if other institutions – such as a possible BRICS-country development bank – become active.”
The report also expects a collective switch away from investment in coal power by development banks to drive some of the growth in clean energy investment.
The European Investment Bank recently sunk US$230 million into solar projects in Latin America.
India is preparing a US$7.9 billion investment to improve its grid and get it solar-ready with the World Bank, KfW and the Asian Development Bank contributing.