December 17, 2020 Read More →

IHS Markit: Global renewable energy investment from 2021-2025 to hit $1.3 trillion

ReNews.biz:

Global capex spending on renewables is poised to bounce back in 2021, according to IHS Markit Energy Advisory Service.

It is expected to rise 8.5% next year to US$255bn (€205.90bn). Annual spending is expected to remain at those levels through 2025.

This adds up to a $1.3trn (€1.05trn) cumulative 2021-2025 spend—a 9% increase over cumulative capex in 2015-2019.

At the same time, sharply declining capital costs across renewable technologies mean that just a 9% increase in spending will be associated with a 45% increase in cumulative gross renewable capacity additions in 2021-2025 vs. 2015-2019, the analysis found. 

The expected recovery follows a 2020 that saw the renewables sector hit by supply chain disruptions and construction delays stemming from COVID-19 lockdowns and mobility restrictions, among other factors. IHS Markit expects 2020 global non-hydro renewables capex will be $235 billion (€189.71bn) down 7% from 2019 levels.

Vice President for financial services Roger Diwan said: “When it comes to renewables, we may likely look back on 2020 not so much for the COVID-induced contraction in spending but for the sprightly return to growth.

More: Renewables spending to ‘bounce back’ in 2021

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