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.

The 14th RAHSTA Expo, part of the India Construction Festival, will be held on October 9 and 10, 2024, at the Jio Convention Centre in Mumbai. For more details, visit: https://rahstaexpo.com

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 Urban

India, US to promote sustainable aviation fuel and hydrogen in buses

India and the United States have agreed to promote sustainable aviation fuel (SAF), electrification of medium and heavy-duty vehicles, and the use of hydrogen in buses, tractors, and heavy equipment. This decision came during the Strategic Clean Energy Partnership (SCEP) dialogue between US Energy Secretary Jennifer Granholm and Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri in Washington, DC. Both nations also encouraged increased investments in each other's clean energy markets. The joint statement emphasised the importance of a "just, orderly, and sustainable energy trans..

Next Story
Infrastructure Transport

Tuticorin Airport upgradation set for December completion

Tuticorin Airport in Tamil Nadu is undergoing a significant upgrade, with an expected completion date in December 2024. The project, valued at Rs 3.81billion, is being carried out by the Airports Authority of India (AAI) and involves the extension of the runway to accommodate A-321 type aircraft, construction of a new apron, a new terminal building, a technical block with a control tower, and a new fire station. The new terminal building, covering 17,500 square meters, will significantly enhance the airport's capacity, enabling it to serve 1,440 passengers during peak hours and handle up to 2 ..

Next Story
Infrastructure Transport

Airfare hike not tied to increased airport charges; ACI

The Airports Council International (ACI) stated that rising airfares are not linked to increased airport charges. Airport charges are crucial for infrastructure development within the commercial aviation ecosystem, but they remain a minimal part of the overall airfare. Stefano Baronci, Director General of ACI Asia Pacific & Middle East, emphasized that airports are infrastructure-intensive businesses, with costs dominated by maintaining essential infrastructure such as runways, taxiways, aprons, and terminal buildings. He noted that neglecting the capital expenditure needed to support future g..

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