Global investment in new renewable power generation exceeded investment into fossil fuel power for the first time in history according to calculations published by Bloomberg energy finance. One hundred eighty seven billion dollars were invested into new solar, wind, biomass and wave power capacity last year compared with $157 billion for new natural gas, oil and coal power. Despite the global financial crisis, very low values for carbon credits and failed international talks at Copenhagen on climate change, investment in renewable power continues to grow rapidly. As production of solar and wind system has increased, production costs and prices have dropped rapidly, spurring more investment.
"The progress of renewables has been nothing short of remarkable," United Nations Environment Program Executive Secretary Achim Steiner said in an interview. "You have record investment in the midst of an economic and financial crisis."
Solar power costs are competitive and dropping rapidly according to Think Progress.
Despite a desperate effort by the Koch Brothers, Exxon corporation and thousands of lobbyists to sow fear, uncertainty and doubt about global climate change, rapid progress has been made in developing the renewable power solutions to the climate crisis. Although fossil fuel power producers have not been made to pay for the full costs of wastes they generate the economics of renewable power has become favorable with the help of subsidies.
The direct subsidies to renewable power are helping to develop new competitive green power industries in countries such as China and Germany. Over the objections of Republican "conservatives" the Obama administration directed stimulus funds towards green power in the United States. Obama's investment in renewable power have helped keep the U.S. competitive. China's government is not afraid of "picking winners". If the U.S. had followed Republican policy, we would have declared surrender to China on renewable power and destroyed a growing industry that supports thousands of new, good American jobs.
Renewable energy is especially attractive in developing nations because the high infrastructure costs of fuel transportation and energy distribution are reduced by domestically generated, distributed renewable power. Indeed, investments in developing nations in renewable power have exceeded investments into fossil fuel power for the first time. Moreover, developing countries are now investing more more money into power generation than developed countries for the first time.
As well as renewables spending exceeding that on new fossil plants, last year also was the first time expenditure in developing countries, mainly China, exceeded that in the industrialized world, Sawyer said, predicting both trends will continue.
The New Energy Finance figures exclude investment that merely replaces existing plants, and its renewables tally excludes money spent on building large hydropower projects.
Developing countries, led by China, are taking the world towards a renewable energy future. Indeed, developing renewable energy is the only path towards continued progress.