![According to BloombergNEF’s H1/2023 investments report for renewable energy, $335 billion was invested in project deployment through both asset finance and small-scale solar. (Photo Credit: BloombergNEF)](http://media.assettype.com/taiyangnews%2Fimport%2Fwp-content%2Fuploads%2F2023%2F08%2FBloombergNEF.png?w=480&auto=format%2Ccompress&fit=max)
The global renewable energy investments in H1/2023 increased 22% annually to $358 billion, according to Bloomberg New Energy Finance (BloombergNEF). Solar was the key driver, accounting for 2/3rds with a share of $239 billion invested in large- and small-scale systems.
In H1/2022, new large- and small-scale solar projects took $120 billion investment out of the $226 billion raised by the global renewable energy sector (see H1/2022 RE Investments Added Up To $226 Billion).
China accounted for roughly half of the investments in solar during the period, thanks mainly to lower module prices, a robust rooftop PV market and the commissioning of mega wind+solar energy bases in the country.
The US was second, taking in $25.5 billion of investments, or a 75% annual increase, which is an all-time record for the country. Analysts cite easing of supply chain constraints and growing clarity around the Inflation Reduction Act (IRA) in this market for this growth.
Several nations in the Europe, Middle East and Africa (EMEA) region also secured significant investments during H1/2023 for solar energy. Demand was driven by the energy crisis as a result of the Russian invasion of Ukraine. Germany, Poland and the Netherlands were major centers.
Power strapped South Africa, with its tax incentives, also reported record investments in solar. Saudi Arabia's NEOM PV plant for dedicated hydrogen production contributed to a record 6-month period of solar investment in the country, according to BloombergNEF's 2H 2023 Renewable Energy Investment Tracker Report.
As against the 43% annual increase in solar energy investment during the reporting period, investment in wind power declined 8% to a total of $94 billion. Onshore wind investment declined for 4 straight quarters, receiving $64.5 billion in H1/2023—a 21% annual drop.
According to the analysts, the major reasons for this decline in investments for wind energy are grid constraints, permitting challenges and faltering policy support across multiple markets. This renewable energy technology today has a reduced global pipeline of ready-to-develop projects, explain the analysts, denting asset financing volumes.
Offshore wind, on the other hand, reported a 47% annual jump in investments with $29.2 billion, led by Europe.
Of the total $358 billion renewable energy investment in H1/2023, $335 billion was dedicated to project development through asset finance and small-scale solar. Venture capital and private equity expansion commitments to renewable energy companies totaled $10.4 billion, while new equity raised on public markets reached $12.7 billion, both increasing 25% YoY.
Yet, global investment in renewable energy remains insufficient to align the world to a net-zero trajectory by 2050. According to BloombergNEF, it needs to rise to $590 billion in the form of asset finance and small-scale solar per a 6-month period to reach an eventual $8.3 trillion between 2023 and 2030.