Global uptake of renewable energy rises amid falling prices

The consumption of cleaner sources of energy like wind, solar and geothermal has gone up amid reduced cost linked to policy and regulatory incentives, says a new report by UNEP and collaborating partners launched in Nairobi late Thursday.

According to Global Trends in Renewable Energy Investment 2017, industries and households have rapidly transitioned from fossil fuels to cleaner sources of energy based on economic, health and ecological imperatives.

UN Environment Executive Director Erik Solheim lauded governments and industry for stimulating investments in clean energy to enhance its reach to consumers at an affordable cost.

"Ever cheaper clean tech provides a real opportunity for investors to get more for less...this is exactly the kind of situation where the needs of profit and people meet, that will drive a shift to a better world for all," said Solheim.

UNEP and its collaborating centre, Frankfurt School alongside Bloomberg New Energy Finance compiled the report that revealed investments and uptake of renewable energy has gradually outpaced the one of fossil fuels.

The report reveals that clean energy sources installed in 2016 hit 138.5 gigawatts up from 127.5 gigawatts in 2015.

"Together, the new renewable sources of wind, solar, biomass and waste, geothermal, small hydro and marine accounted for 55.3 percent of all gigawatts of new power generation added worldwide last year," says the report.

It added that installation of solar energy that stood at 75 gigawatts last year outpaced other cleaner energy sources thanks to sharp fall in the price of solar panels.

The UNEP report however clarifies that investments in renewable energy fell by 23 percent between 2015 to 2016 due to a host of factors like global economic volatility alongside policy and regulatory realignments.

Overall, installation of renewable energy sources last year was not affected by the decline in capital flows towards that sector.

"The proportion of global electricity provided by renewables rose from 10.3 percent in 2015 to 11.3 percent in 2016, hence preventing an estimated 1.7 gigatonnes of carbon dioxide emissions," says the report.

Experts were optimistic the shift to cleaner energy sources will accelerate this year thanks to friendly policies and regulations that have re-invigorated enthusiasm by institutional investors.

"The investor hunger for existing wind and solar farms is a strong signal for the world to move to renewables," said Professor Udo Steffens, the President of Frankfurt School of Finance and Management. Endit