Developing countries are on its way to a geographic shift in renewable investment

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Developing countries are now investing in renewable energy almost as much as Developing countries are on its way to a geographic shift in renewable investmentdeveloped countries energy with 46 per cent of the global total in 2012. The investment in renewables follows a ‘geographic shift’ is now under way to overtake the West, with the east and south taking the lead as confirmed by the Global Trends in Renewable Energy Investment 2013.
The trend accounted for an energy-growing share of electricity capacity added worldwide including China. Although the investment in this sector last year failed to top the year before but the 2012 report scored as the second highest year ever. The lower prices for solar energy and the weakened EU and US demand had contributed to the 12 percent drop from 2011.
The continuing upward trend in developing countries saw investments topping $112 billion in 2012, compared to $132 billon in developed countries , a clear dramatic change from 2007 when the developed world invested 2.5 times more in renewables (excluding large hydro). The 2012 global investment for renewable energy of $244 billion brought renewables capacity worldwide to 1,470 gigawatts , an increase by 8.5 per cent on the investment in 2011. Altogether, since 2006 global investment in renewables is estimated at $1.3 trillion.
About 39 percent of the renewable power capacity was accounted for the wind power followed by the hydropower and solar photovoltaics (PVs). The PVs which accounted for 26 percent also reached the 100-gigawatt milestone in 2012 putting the solar ahead of bio-energy as the third largest renewable technology after hydro and wind.
As countries and communities seize the linkages between low-carbon green economies and a future of energy access and security, sustainable livelihoods and a stabilize climate will influence to the up taking of renewable energy. Two-thirds are in the developing world of the 138 countries with renewable targets and policies in place with China as the world’s dominant player having investment up last year by 22 per cent to $67 billion.
Sharp increases were seen in Morocco, South Africa, Chile, Mexico, and Kenya with the Middle East and Africa showing the highest regional growth of 228 per cent to $12 billion. While in the US, however, investment was down 34 per cent to $36 billion. Germany’s solar capacity in 2012 added an impressive 7.6 gigawatts , but its overall investment in renewables slipped 35 per cent to $20 billion. Among the developed countries, Japan leads investment in renewable energy surging by 73 per cent to $16 billion.