Global interest in clean energy technologies reached new heights last year and 2016 promises to be another record-breaker. The year 2015 witnessed installation of more than 121 GW of renewable power plants, a remarkable increase of 30% when compared to 2014. With oil and gas prices tumbling out to unprecedented levels, 2016 should be a landmark year for all clean energy technologies. As per industry trends, solar power is expected to be the fastest-growing renewable power generation technology in 2016, closely followed by wind energy. Among investment hotspots, Asia, Africa and the Middle East will be closely watched this year.
Investment Forecast for 2016
Clean energy is rapidly becoming a part of mainstream investment portfolios all over the world. In 2016, a greater attention will be focused on renewable energy, mainly on account of the Paris Framework and attractive tax credits for clean energy investments in several countries, especially USA.
Infact, the increasing viability of clean energy is emerging as a game-changer for large-scale investors. The falling prices of renewable power (almost 10% per year for solar), coupled with slump in crude oil prices, is pulling global investors away from fossil fuel industry. At the 2016 UN Investor Summit on Climate Risk, former US vice president Al Gore said, “If this curve continues, then its price is going to fall “significantly below the price of electricity from burning any kind of fossil fuel in a few short years”.
There has been an astonishing growth in renewable generation in recent years. “A dozen years ago, the best predictors in the world told us that the solar energy market would grow by 2010 at the incredible rate of 1 GW per year,” said Gore. “By the time 2010 came around, they exceeded that by 17 times over. Last year, it was exceeded by 58 times over. This year, it’s on track to be exceeded by 68 times over. That’s an exponential curve.”
As per industry forecasts, China will continue its dominance of world PV market, followed closely by the US and Japan. Infact, USA is anticipated to overtake Japan as the second largest solar market this year. India, which is developing a highly ambitious solar program, will be a dark horse for cleantech investors. The top solar companies to watch include First Solar, Suntech, Canadian Solar, Trina Solar, Yingli Solar, Sharp Solar and Jinko Solar.
Morocco has swiftly become a role model for the entire MENA. The government’s target of 2GW of solar and 2GW of wind power by 2020 is progressing smoothly. As for solar, the 160MW Noor-1 CSP is already commissioned while Noor-2 and Noor-3 are expected to add a combined 350MW in 2017.
China will continue to lead the global wind energy market in 2016, and is on course to achieve its target of 200 GW of installed wind capacity by 2020. Other countries of interest in the wind sector will be Canada, Mexico, Brazil and South Africa. The major wind turbine manufacturers to watch are Siemens, Vestas, Goldwind, Gamesa and GE.
To sum up, the rapid growth of global renewable energy sector in the past few years is the strongest signal yet for investors and corporations to take the plunge towards green energy and low-carbon growth. As the UN chief Ban Ki-moon famously said, “It marks the beginning of the end of growth built solely on fossil fuel consumption. The once unthinkable has now become unstoppable.”