World renewable investments slowing down

Low prices force 12% cut in investments.

A report by the United Nations Environment Program (UNEP) showed global demand for renewable energy rising steadily, but said lower prices had prompted a reduction in revenues.

Global investments in renewable sources of energy in 2012 failed to top levels of the previous year for only the second year since 2006. The world is generating more power from renewable sources than ever before, however, pointing to improved efficiency in the sector.

Year-on-year investments fell by 12%, due largely to far lower prices for solar panels and weak US and EU markets.

Despite a lower increase in resources spent on extending the use of renewables, overall investments last year totaled US$244 billion worldwide, the second largest annual amount ever recorded for the sector.