India joins the top 10 as the global CleanTech investment at $243 billion in 2010

Posted on April 4, 2011 by

India has joined ranks with leading nations in clean energy, featuring for the first time in the top 10 global clean tech finance and investment destinations. Globally, renewable energy finance and investment grew by 30% in 2010 over 2009. The number reached $243 billion in 2010. These numbers were published in a new research released by The Pew Charitable Trust. The renewable energy thus continues as one of the most dynamic and competitive in the world, having witnessed more than 6 fold jump in finance and investments since 2004.

The investment numbers are heavily skewed in the favor of the leading economies, with investments in the G-20 countries accounting for more than 90% of the global total. The report states that “Countries like China, Germany and India were attractive to financers because they have national policies that support renewable energy standards, carbon reduction targets and/or incentives for investment and production and that create long-term certainty for investors.”

Some of the key rankings are as under

  • Formidable China, with massive investments in wind, solar and large hydro continues to solidify its position as the world’s clean energy superpower. Investments of $54.4 billion in 2010 is a record 39% increase from 2009.
  • Germany held second rank in the G-20, having doubled its investments to $41.2 billion. Germany was rank three in 2009.
  • US had maintained the top rank until 2008. It however fell to 3rd spot in 2010 with $34 billion.
  • Policy uncertainty around clean energy is believed to have caused the largest decline in investments in the United Kingdom, as it fell from fifth spot to 13th.
  • Raising its rank from 8th to 4th, Italy attracted $13.9 billion in 2010. Italy is the first country to achieve grid parity, or cost-competitiveness, for solar energy.

Technology wise, wind power continued to lead at $95 billion. The solar sector is experiencing significant growth, with investments growing at 53% to $79 billion. More than 17 GW of new generating capacity was commissioned in 2010 globally. With a well designed solar investment promotion policy, Germany accounted for 45% of global solar investments.

Some other interesting observations are

  • As a region, Europe remains the leading recipient at $94.4 billion. Germany and Italy lead within Europe.
  • Asia grew by 33%, led by China, attracting an overall $82.8 billion.
  • Investment grew by 35% in the Americas, but as a region it remains a distant 3rd, attracting $65.8 billion.
  • Small-scale, residential solar grew by 100% to $56.4 billion in the G-20 nations. Again, Germany accounts for nearly half the total. Japan, France, Italy and the United States are the other significant players
  • Installed capacity increased to 388 GW from wind, small-hydro, biomass, solar, geothermal and marine. China accounted for more than 25% of the global total.
  • VC/PE investments in cleantech grew by 26% percent to $8.1 billion. The U.S. led with $6 billion, almost 3/4th of the G-20 total.


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