BAKU, Azerbaijan, June 22. Renewables are set to remain the number one power sector category for investment in 2022, after a record year in 2021 when more than USD 440 billion was spent for the first time ever, Trend reports with reference to the International Energy Agency (IEA).
“Despite numerous issues affecting the sector, including inflationary pressures, tighter financing conditions and supply chain bottlenecks, there is a solid pipeline of projects that stem from more ambitious climate goals and robust policy support: renewable capacity is forecast to account for almost 95% of the increase in global power capacity through to 2026. Solar PV became the leader in power sector investment in 2021 and comprised nearly half of all renewables investment. Spending is almost evenly divided between utility-scale projects and distributed solar PV systems, with each subcategory to pass the USD 100 billion mark in 2022,” reads the latest IEA report.
The report reveals that for wind, while 2020 was a record year for onshore deployment, 2021 was a record year for offshore deployment, with more than 20 GW commissioned and around USD 40 billion of expenditure.
“Similar to the onshore peak in 2020, developers pushed to commit offshore wind projects in 2021 before the expiry of subsidy regimes in China. Investment in fossil fuel power generation is expected to be flat in 2022, consolidating the rebound experienced in 2021, with higher spending on natural gas compensating for the decrease in spending on coal-fired power generation. Capital expenditure on these technologies remains over USD 100 billion when combined, despite announcements from governments and companies of a move away from unabated fossil fuels and the current uncertainties.”
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