Clean energy investment had a banner year in 2015, increasing 4% over 2014 levels.
As fossil fuel prices tumbled in 2015, forcing belt tightening and budget cuts throughout the industry, renewable energy witnessed a record-breaking year. Despite beliefs that interest in clean energy would wane as traditional energy prices cratered, renewables like wind and solar managed to rake in a record $329.3 billion in investments.
Clean energy investment, in fact, rose 4% over 2014 to set the new record.
Industry analysts anticipated a slump in renewables as the cost of fossil fuels fell, but the year played out much differently than anticipated thanks to growing investments in wind and solar from different parts of the globe. The surprising outcome has some saying the industry has managed to increase its cost-competitiveness to the point it remains attractive even in the face of exceptionally low oil and gas prices.
Investments in renewables came from across the globe with China leading the charge. Its $110.5 billion investment marked a 17% increase over 2014 and nearly doubled the investment made by the United States. America ranked second overall with a $56 billion clean energy investment in 2015. India spent $10.9 billion while all of Europe combined invested $58.5 billion.
Emerging markets in Mexico, South Africa and Chile also bolstered the numbers by attracting tens of billions of dollars for the industry. Brazil lowered its investment from 2014 to about $7.5 billion in 2015.
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Wind and solar power were the big winners in 2015, Bloomberg New Energy Finance analysts found. An estimated 64 gigawatts of wind power came online with 57 gigawatts of photovoltaics added. This represented a healthy climb of 30% over 2014.
Analysts anticipate 2016 to be another strong year for clean energy, but stop short of predicting another record-breaker. Even so, the strong 2015 numbers in the face of slumping fossil fuel prices serve as an encouraging sign the clean energy market is truly coming into its own.
“The technologies have reached an important tipping point in a number of markets in the world,” Bloomberg analyst Ethan Zindler, told The Washington Post. “They are now, in a growing number of locations, becoming cost competitive.”
Only time will tell if 2016 will be another banner year for the industry, but indications are clear renewable energy is being embraced by nations around the world. Following the 2015 Paris climate agreement, Bloomberg analysts anticipate that favorable government policies and other incentives for producing renewable energy will lend to the industry’s growing popularity and environmental importance.
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