Clean energy investments reach $1.8 trillion
ECONOMY & POLICY

Clean energy investments reach $1.8 trillion

According to the EY Renewable Energy Country Attractiveness Index (RECAI 63) report, there has been a notable increase in global investments in clean energy, reaching $1.8 trillion last year, of which $660 billion went towards renewables. However, the investment still does not reach the COP28 target, which calls for tripling renewable capacity by 2030. Two main challenges that might prevent the required acceleration are high capital expenditures and network congestion.

The study stressed how crucial battery energy storage systems (BESS) are to overcome these obstacles, especially in developed countries where network congestion has become a serious issue. BESS is essential, according to EY, for bolstering and stabilising grid infrastructure and facilitating the connection of more dispersed energy resources. Arnaud de Giovanni, EY Global Renewables Leader, emphasised the significance of scaling up battery energy storage systems (BESS). He noted that expanding BESS capabilities could address various challenges hindering the advancement of clean energy.

According to Giovanni, "Scaling up battery energy storage systems can help solve multiple problems holding up clean energy progress." He outlined four critical areas for investors to concentrate on: constructing a resilient investment case, maintaining competitiveness in technology, establishing optimal business models or financing structures, and mitigating risks in the supply chain.

The RECAI (Renewable Energy Country Attractiveness Index) also introduced a new ranking for global markets based on their appeal for BESS investments. The United States secured the top spot, bolstered by a 30% tax credit under the Inflation Reduction Act. China and the United Kingdom followed closely, benefiting, respectively, from robust government support and advanced energy market frameworks.

Ben Warren, EY RECAI Chief Editor, acknowledged the growing complexity and interest in BESS investments. He observed, "Investor interest in BESS is increasing," and added, "BESS investments require a long-term commitment; they are also highly localised and carry more risk compared to some other clean energy investments."

EY forecasts a significant increase in global BESS deployment from 2023 to 2030, projecting it to grow fourfold to reach 572 GW/1,848 GWh. This underscores the expanding role of energy storage within the dynamic energy sector.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

According to the EY Renewable Energy Country Attractiveness Index (RECAI 63) report, there has been a notable increase in global investments in clean energy, reaching $1.8 trillion last year, of which $660 billion went towards renewables. However, the investment still does not reach the COP28 target, which calls for tripling renewable capacity by 2030. Two main challenges that might prevent the required acceleration are high capital expenditures and network congestion. The study stressed how crucial battery energy storage systems (BESS) are to overcome these obstacles, especially in developed countries where network congestion has become a serious issue. BESS is essential, according to EY, for bolstering and stabilising grid infrastructure and facilitating the connection of more dispersed energy resources. Arnaud de Giovanni, EY Global Renewables Leader, emphasised the significance of scaling up battery energy storage systems (BESS). He noted that expanding BESS capabilities could address various challenges hindering the advancement of clean energy. According to Giovanni, Scaling up battery energy storage systems can help solve multiple problems holding up clean energy progress. He outlined four critical areas for investors to concentrate on: constructing a resilient investment case, maintaining competitiveness in technology, establishing optimal business models or financing structures, and mitigating risks in the supply chain. The RECAI (Renewable Energy Country Attractiveness Index) also introduced a new ranking for global markets based on their appeal for BESS investments. The United States secured the top spot, bolstered by a 30% tax credit under the Inflation Reduction Act. China and the United Kingdom followed closely, benefiting, respectively, from robust government support and advanced energy market frameworks. Ben Warren, EY RECAI Chief Editor, acknowledged the growing complexity and interest in BESS investments. He observed, Investor interest in BESS is increasing, and added, BESS investments require a long-term commitment; they are also highly localised and carry more risk compared to some other clean energy investments. EY forecasts a significant increase in global BESS deployment from 2023 to 2030, projecting it to grow fourfold to reach 572 GW/1,848 GWh. This underscores the expanding role of energy storage within the dynamic energy sector.

Next Story
Infrastructure Energy

Orb Energy Achieves Rs 3 Bn Milestone in Solar Financing Success

Orb Energy, a vertically integrated solar energy solutions provider, has achieved a significant milestone by surpassing Rs 3 billion in financing disbursements through its in-house finance facility that requires no collateral or down payment. This accomplishment underscores its dedication to supporting small and medium enterprises (SMEs) and micro, small, and medium enterprises (MSMEs) in India in transitioning to cost-effective solar energy solutions. The company has installed approximately 350 MW of solar photovoltaic systems nationwide, with a strong foothold in southern and western India...

Next Story
Infrastructure Energy

90% Defaulters Yet to Settle Rs 3.17 Bn Power Dues in Noida

Out of a total of 1.31 lakh defaulters in Noida, only 13,500 consumers availed of the one-time settlement (OTS) scheme during its first phase. The Uttar Pradesh Power Corporation (UPPCL) launched the scheme in three phases, from December 15, 2024, to January 31, 2025. These consumers cleared dues amounting to Rs 300.40 million out of a total Rs 3.47 billion owed. Officials emphasized that stricter enforcement of the scheme would be implemented in the coming phases. During a recent weekend meeting with the technical team of the power department, the Noida zone's chief engineer instructed that..

Next Story
Infrastructure Energy

NER Invites Bids for 10 MW Rooftop Solar Projects in Uttar Pradesh

The Varanasi division (electrical) of Northeastern Railway has recently issued four tenders for a total of 10.4 MW on-grid rooftop solar systems to be installed at various buildings in Gorakhpur, Uttar Pradesh. The tenders include different project capacities, with submission deadlines set between January 31 and February 3, 2025. Bidders are required to submit earnest money deposits (EMDs) ranging from Rs 0.89 million to Rs 1.2 million depending on the tender, with the expected project costs varying between Rs 148 million and Rs 174.08 million. The selected contractors will be tasked with sup..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000