Economic Stimulus and Global New Energy

How much will renewable energy benefit from global stimulus packages?

1 December 2021 (International Energy Agency)

“…[As of October 2021, approved] government spending on clean energy reached USD 480 billion. The USD 45 billion allocated to renewables – including electricity, heat and fuels (biofuels, advanced biofuels and biogas) – accounted for about 9% of announced public spending on clean energy. The majority of global clean energy stimulus is expected to be spent over 2021-2023…[Energy efficiency] received USD 144 billion, the greatest clean energy spending globally…The second most supported sector is public transport (USD 94 billion), followed by low-emission vehicles and charging infrastructure (USD 79 billion)…

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Of the spending on low carbon power, we expect solar PV to receive the largest amount, accounting for almost half of low-carbon electricity spending (USD 24 billion) and split between utility-scale and distributed PV. This stimulus money will mostly support already developed markets in China, Korea and the European Union to further accelerate investments. Nuclear power has received around USD 9 billion in public spending, followed by offshore wind and onshore wind…

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…[Hydropower, geothermal, bioenergy, biogas, and biofuels only received around USD 6.5 billion but low-carbon hydrogen got USD 30 billion because it is thought by many] governments to be the main fuel for decarbonising the hard-to-abate sectors…[A]lmost three quarters of public spending on clean energy was allocated in Europe, followed by the Asia Pacific region and North America…[The spending on] renewable electricity could mobilise USD 380 billion of additional private investment…[depending on] policies and implementation measures…with solar PV providing over 90% of this upside potential…” click here for more

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