Renewable energy capacity has grown at record- high levels, even as investment has dipped in dollar terms in 2016. Investment levels are highly responsive to policy changes.
Offshore wind investment has risen steadily – quadrupling in 2013-2016 – and is poised for further growth.
Private sources provide the bulk of renewable energy investment globally – over 90% in 2016.
But public finance can play a key enabling role – covering early-stage project risk and getting new markets to maturity. Public spending on policy implementation far outweighs direct public investments.
Project developers account for about two-fifths of private investment in the sector. Institutional investors – pension funds, insurance companies, sovereign wealth funds and others – only make up less than 5% of new investments.
Private investors overwhelmingly favour domestic renewable energy projects (93% of the private portfolio in 2013-2015), whereas public investment is more balanced between in-country and international financing." - IRENA, 2018
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