Trillion Dollar Mark Touched

Posted on December 9, 2011 by

The world of renewable energy just saw its trillionth Dollar investment. According to analysis by Bloomberg New Energy Finance, the investment happened sometime in the past 2 weeks. What is interesting about this event is that it occurred exactly when the whole world was in a grip of uncertainty as to the future of the Kyoto Protocol or any other globally binding climate change deal at Durban.

“The trillionth-dollar milestone shows that the world is not waiting for a deal on climate in order to start turning the super-tanker away from fossil fuels,” said Bloomberg New Energy Finance chief executive Michael Liebreich. “It should serve as a message to the UN and all those in Durban to stop obsessing about a binding deal to cap carbon emissions, and to think much harder about how to speed up investment in the solutions. Another five years of investment growth at the same compound rates, and the world will have broken the back of emissions growth.”

A look at investments into this sector has shown a five-fold increase from $52 billion in 2004 to $243 billion in 2010, a compound annual growth rate of 29%. According to Bloomberg New Energy Finance, the figures are expected to be record high again in 2011, driven by fundings for US solar thermal projects, financing of European offshore wind projects, Germany’s renewable development, China’s monstrous solar capacity addition and India’s ambitions renewable energy missions.

While the exact trillionth dollar investment is difficult to pin point, it has been confirmed that it was made somewhere in the last two weeks. Amongst those made in that period were the following;

  • Rhodia Energy secured the Brazilian real equivalent of $60.5m in debt for the 77MW expansion of its biomass co-generation plant in Paraiso
  • China Huadian Corporation financed a 48MW wind farm in Fujian province
  • Marena Renovables Capital obtained debt from the Inter-American Development Bank towards the development of the 396MW La Ventosa wind farm in Mexico
  • Moroccan Agency for Solar Energy got debt financing for the development of phase one of the 125MW Ouarzazate solar thermal project
  • In venture capital and private equity, electric vehicle specialist Fisker Automotive of the US landed $58m in the first tranche of a funding round
  • On public markets, biodiesel maker Petrotec of Germany raised the euro equivalent of $11m in cash and kind, via a rights issue
Posted in: Renewable Energy