Clean energy attracts more investment, despite price crash in fossil fuel

2164 Views Abu Dhabi - Abu Dhabi - United Arab Emirates

In short
The rise of the global clean energy industry is now irreversible with latest figures showing a four per cent increase 2015 to reach a record high of close to 330 billion dollars.

The rise of the global clean energy industry is now irreversible with latest figures showing a four per cent increase 2015 to reach a record high of   close to 330 billion dollars.

Players in the energy sector now attending the Sixth session Assembly of the International Renewable Energy Agency at Abu Dhabi say the increase in investment in clean energy confirm that renewable energy could power future energy needs. 

They says the figures also confirm that  clean energy is thriving even at the time when fossil fuel prices across the oil, coal and gas markets are at their lowest.

It had been predicted that the fall of  oil and gas prices would undermine investment in renewables, electric vehicles, and other clean technologies but Michael Liebreich, chairman of the advisory board for Bloomberg New Energy Finance (BNEF) said the figures are a stunning riposte to all those who expected clean energy investment to stall on falling oil and gas prices.

He  however says there will need more investments from both private and public sectors in order to push the clean energies further with needed technologies especially in areas where over a billion people don't have access to electricity.

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He said over the past 12 months clean energy investment rose from $315.9bn to $329bn, beating the previous high set in 2011 by three per cent.
The market he said was driven by surging investment in China, the US, Latin America and India.
Over the past 18 months the price of Brent crude has dropped 67 per cent to below $40 per barrel, while the price of natural gas in the US fell 48 per cent and the price of international steam coal dropped 35 per cent in Europe.

Paul Simons, Deputy Executive Director of International Energy Agency told Uganda Radio Network that renewable energy technologies were no longer viewed as expensive option reserved for the rich.

He said cleaner energy is now more economically viable and was not in competition with oil, gas and coal.
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He said what is happening in the market highlight the improving cost-competitiveness of solar and wind power, driven in part by the move by many countries to committing themselves to reduce dependency on oil gas and coal.

The increase in investment in clean energy comes at the time when the International Renewable Energy Agency (IRENA) has just released a report highlighting the economic benefits of investing in renewable energy.

The report said achieving a 36 per cent share of renewable energy in the global energy mix by 2030 would increase global gross domestic product (GDP) by up to 1.1 per cent, roughly USD 1.3 trillion.