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BNEF: In the first half of 2021, the investment in solar mounting system projects reached US$78.9 billion, a record high

Data:2021-08-06

According to the latest renewable energy investment tracking report of the research company Bloomberg New Energy Finance (BNEF), with the support of record public market financing and record venture capital and private equity The company’s total new investment is $174 billion. This is the highest record in the first half of any year, an increase of 1.8% over the same period last year, although it is 7% lower than the second half of 2020. This is undoubtedly a challenge for solar mounting structure manufacturers such as CHIKO Solar.

BNEF: In the first half of 2021, the investment in solar mounting system projects reached US$78.9 billion, a record high
 
The latest data from BNEF's transaction and project database on renewable energy investment in the first half of the year shows that the decline in investment in new renewable energy projects was offset by the increase in the issuance of renewable energy companies.
 
In the first half of 2021, new equity raised on the open market reached a record US$28.2 billion, and venture capital and private equity commitments to renewable energy companies reached US$5.7 billion. These are the main factors that contributed to the overall strength in the first half of the year.
 
At the same time, investment in solar brackets projects increased by 9% year-on-year. However, wind power asset financing has declined year-on-year, which is in sharp contrast to the first half of 2020, which is a bumper period for offshore wind farm financing.
 
Albert Cheung, head of analysis at BloombergNEF, said: “Renewable energy investment has withstood the impact of the global pandemic. Compared with other energy economy sectors, we have seen unprecedented fluctuations. However, the year-on-year growth of 1.8% is not surprising if we are to go. To get on the track of global net zero, it is necessary to speed up capital investment immediately."
 
In the first half of the year, investment in wind power projects exceeded 58 billion U.S. dollars, which was the same as in 2018 and 2019, but was significantly lower than the 850 U.S. dollars investment in the same period last year. In the first half of 2021, investment in China, the world's largest wind power market, was strong, reaching US$21 billion, indicating that developers are continuing to build projects without feed-in tariff premiums. Europe, the Middle East, and Africa account for 36% of investment in wind power projects. Europe performed strongly in the first half of the year, and Finland became the largest onshore wind power market.
 
In the first half of 2021, investment in solar mount projects increased to a record US$78.9 billion. China’s solar projects reached US$4.9 billion in the second quarter of 2021, up from US$2.8 billion in the first quarter. Investment in large-scale solar projects in the United States increased from US$5.3 billion in the first quarter to US$6.4 billion in the second quarter of 2021. Solar energy project investment usually accelerates in the second half of the year to meet the end of the year deadline.
 
The so-called "circulation funds", including refinancing, mergers, acquisitions and acquisitions of renewable energy projects, totaled US$68.3 billion in the first half of 2021, an increase of nearly 18% over the same period last year. In the first half of the year, the total amount of equity raised by clean energy companies on the open market hit a record high, exceeding the amount of funds raised in any previous year.
 
Renewable energy and related companies raised a total of US$28.2 billion on the open market in the first half of the year, an increase of 509% over the previous year. Logan Goldie-Scot, head of clean energy at BNEF, said: "As the energy transition accelerates, investors are increasingly looking for ways to increase their portfolios in renewable energy and related fields, such as energy storage and hydrogen."
 
M&A activities are an important part of renewable energy financing, although these transactions are not included in BNEF's overall new investment data because they do not provide new funding for technology and developers. In the first half of 2021, corporate mergers and acquisitions of private equity totaled US$22.4 billion, an increase of 25% from the US$17.9 billion in the previous year. India has surpassed the United States and China, and these two markets are the main markets for solar mounting structure in 2020.


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Above news from CHIKO Sales & Marketing department
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