Falling oil prices will not affect development of the alternative energy

Alternative energy

Total investment into renewable energy in last ten years since 2004 was at around $2 trillion and reached $270bn in 2014 alone. The cost of solar and wind turbines is decreasing on the back of new technologies and investments. The most active investors into alternative energy were the USA, China and Japan.

The report, prepared by the UN, Frankfurt School of Finance and Management and Bloomberg agency, says that investment into global alternative energy was at $270bn in 2014, which is 17% higher than in 2013. According to the report, in 2014 such investments showed the first significant growth in the recent three years after some drop in 2012-2013. Total investment into renewable energy globally since 2004 was at around $2 trillion.

“The renewable energy constituted nearly the half of new generating capacities launched in 2014”, Achim Steiner, executive director of UNEP, said. “More environmentally friendly technologies are an integral part of global energy industry. Their importance will only be higher with the development of the market as the cost of the related solutions are going down”. The report also underlines that total alternative energy capacities launched globally in 2014 reached the parity with total generation at all 158 nuclear power plant in the USA. At the same time, the report says that the impact of the recent fall in oil prices on alternative energy will be insignificant. Udo Steffens, president of Frankfurt School of Finance and Management, noted that lower oil prices may have an adverse effect on investors only in oil exporting countries. “Crude oil and renewable energy do not compete for investments. Investors are more concerned of megawatt-hour cost along with the decline in solar and wind power stations construction costs”, Mr. Steffens said.

China was the leader in renewable energy investment in 2014 with $88.3bn, which is 39% higher than in 2013. It was followed by the USA with $38.3bn (7% growth) and Japan came third with $35.7bn (10% growth). Experts note that major part was invested into solar and wind energy, which received 92% of total funds. Total investment into solar energy in 2014 rose by 25% to $150bn, and into wind energy – by 11% to $99.5bn.


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