The share of total global electricity production generated by renewable energy is climbing, mainly because solar photovoltaic systems are becoming less expensive, according to a report released Monday by the United Nations Environment Programme and Bloomberg New Energy Finance.
Wind, solar and other renewables, excluding hydropower, were 8.5 percent of total global electric power generation last year, up from 7.8 percent in 2012, the report says.
That comes just after Bloomberg and Pew Charitable Trusts issued a report last week saying investments in renewables worldwide has been declining since their peak in 2011, with the U.S. lagging behind China in overall investments in wind, solar and other renewables.
The reports come about a week after the Intergovernmental Panel on Climate Change released the second part to its fifth assessment report, stating with certainty that humans are going to have to adapt to a world enduring climate change caused by greenhouse gas emissions from people burning fossil fuels. Renewables help reduce the climate-changing, energy-related carbon dioxide emissions.
Monday’s report, “Global Trends in Renewable Energy Investment 2014,” released during Bloomberg’s “Future of Energy Summit” this week in New York City, says that renewables, not including hydropower, accounted for 43.6 percent of total global new electric generating capacity last year, preventing an estimated 1.2 gigatons of carbon dioxide emissions from being released into the atmosphere.
The report shows that there was a 14 percent drop in global investments in renewables partly for the same reason renewables’ market share is growing — the cost of solar panels is falling.
Solar power generating capacity worldwide increased 26 percent in 2013 over the previous year, from 31 gigawatts in 2012 to 39 gigawatts in 2013 despite total investment in solar falling 23 percent from $135.6 billion to about $104 billion, according to the report.
Other reasons for the drop in investment include uncertainty in renewables policy in many countries and a boost in investment in climate-changing fossil fuels.
The shale oil and gas boom hit renewables investments hard in the U.S., the report says.
Though the U.S. was the largest investor among developed economies in renewables last year at $33.9 billion, it was down 10 percent from 2012 because low natural gas prices helped bring about the shale gas boom, depressing clean energy development, according to the report.
The shale gas boom also contributes to overall uncertanty about the United States' policy commitment to renewables, the report says.
The global renewables picture is more positive, however.
“We’re not seeing anything in any way, anything we can characterize as a collapse in renewable energy investments,” Michael Liebreich, chairman of the advisory board for Bloomberg New Energy Finance, said during a news conference Monday.
He said unsubsidized renewable electric power plants are being built across the globe as they become more able to compete with fossil fuel power generation.
Clean energy stocks had seen a 78 percent decline over four and a half years, bottoming out in July 2012 followed by a 54 percent gain in 2013 as solar and wind manufacturers regained profitability.
“Renewable energy is actually looking like it’s doing its part,” Liebreich said.
Report lead author Angus McCrone, chief editor at Bloomberg New Energy Finance, said the report is not “dressing up” the bad news of declines in renewables investments worldwide.
“What we’re saying now is that there’s a bit of blue sky on the horizon even though the overall investment numbers are down,” McCrone said, adding that trends in the cost-competitiveness of renewables, particularly wind and solar, are striking.
There are more and more places across the globe where renewable energy is being installed without any subsidy, or the renewables are being installed because they’re cheaper than the available fossil fuel technology, he said.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.