By October 2021, governments had granted about USD 17 trillion in refunds, grants, loans, and tax cuts. Energy efficiency has gathered USD 144 billion.
FREMONT, CA: Governments across the world had given about USD 17 trillion in refunds, grants, loans, and tax cuts by October 2021 (IMF, 2021a). These initiatives are intended to aid firms, governments, and consumers affected by the Covid-19 outbreak while also aiding the global economy. Renewables got USD 45 billion in government clean energy investment, which comprised electricity, heat, and fuels (biofuels, advanced biofuels, and biogas).
Based on national limits, renewable heat technologies may benefit from energy efficiency investments. Following other sectors, comes public transit (USD 94 billion), then low-emission cars and charging infrastructure (USD 79 billion). EVs and alternative-fuel automobiles have received the greatest funding thus far.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Utility-scale and distributed solar PV is expected to receive over half of low-carbon energy expenditures (USD 24 billion). Money from established markets like China, Korea, and the EU will help attract investment. With respect to public financing, the nuclear energy sector comes in second at about USD 9 billion. Hydropower, geothermal, and biofuels received just USD 3.5 billion. This is true even for hard-to-decarbonize sectors like aviation and heavy industries, where biogas and biofuels play an important role. Governments seek to decarbonize the most difficult sectors. The US spends USD30 billion on hydrogen, but it's unclear whether the money will go towards renewable or non-renewable hydrogen sources.
After Europe, the Asia Pacific, and North America got public renewable energy financing in October 2021. Depending on the region, renewables represented between 4 percent to 56 percent of overall clean energy investment. In Europe and North America, the emphasis was on transportation and energy efficiency. The focus on strong renewable goals has increased clean energy investment in China and Korea.
Budgeted government renewable energy expenditures might attract an extra USD 380 billion in private investment. However, the private sector's involvement will be heavily influenced by investment policies and procedures. Due to the potential expansion in solar PV, an additional 380 GW of renewable energy projects may be developed in the next few years. It is estimated that between 2021 and 2023, the IEA will add USD 800 billion in renewables. This increased public and private investment.