China RE investments slowing

Despite a record rise in overall world renewable energy investments in 2011, China finds itself spending less and less on RE than its rivals.

Total world investment in RE during 2011 rose by 17% to a record US$257 billion, up six times over the 2004 figure and 94% higher than the total in 2007, the year before the world financial crisis.

Last year, solar generation surged past wind power to become the RE technology of choice for global investors. Solar attracted nearly twice as much investment as wind, driving the renewable energy sector to yet another record-breaking year, according to new reports on RE trends issued by the United Nations Environment Programme and the Renewable Energy Policy Network for the 21st Century.

After leading the world for two years as the top RE investor, China recorded RE investments of US$52 billion in 2011, up 17%, but only US$1 billion more than the USA. The USA saw its investments jump 57% to US$51 billion as developers rushed to cash in on three incentive programs before they expired during 2011 and 2012.

China topped countries with the largest renewable electricity capacity but excluding large hydro. Next to China were the USA, Germany, Spain, Italy, India and Japan. These seven countries accounted for 70% of total non-hydro renewable capacity worldwide.

In the power sector, renewables accounted for almost half of the estimated 208 gigawatts (GW) of electric capacity added globally in 2011.

Wind and solar photovoltaic (PV) accounted for almost 40% and 30% of new renewable capacity, respectively, followed by hydropower (nearly 25%).

In 2011, total renewable power capacity worldwide exceeded 1,360 GW, up 8% over 2010. Renewables also comprised more than 25% of total global power-generating capacity (estimated at 5,360 GW in 2011) and supplied an estimated 20.3% of global electricity.