## BloombergNEF reports 11% year-on-year rise in renewable energy financing in the first half of 2022, for a total of $226B ##### 02 August 2022 Global investment in renewable energy totaled$226 billion in the first half of 2022, setting a new record for the first six months of a year, according to Renewable Energy Investment Tracker 2H 2022, a new report published by research firm BloombergNEF (BNEF). Investment in new large- and small-scale solar projects rose to a record-breaking $120 billion, up 33% from the first half of 2021. Wind project financing was up 16% from 1H 2021, at$84 billion.

Both sectors have been challenged recently by rising input costs for key materials such as steel and polysilicon, as well as supply chain disruptions and rising financing costs. However, the new figures indicate that investor appetite is stronger than ever, in part due to the very high energy prices currently being seen in many markets around the world, according to BNEF.

The Renewable Energy Investment Tracker summarizes BloombergNEF’s tracking of global investment in renewable energy up to and including 1H 2022, and covers both project investments and corporate fundraising. As well as seeing booming project investments, the first half also saw an all-time record for venture capital and private equity investments into renewables and energy storage, with $9.6 billion raised—up 63% on the previous year. One category that saw falling investment was public equity issuances. After a very strong first half in 2021, public market issuances for renewable energy companies dropped 65% in 1H 2022, totaling$10.5 billion. The 2Q figure, at $3.9 billion raised, is the lowest quarterly total since 2Q 2020. China posted remarkable investment growth in both wind and solar project finance, according to the report. The country’s large-scale solar investments totaled$41 billion in 1H 2022, up 173% from the year before. It also invested $58 billion in new wind projects, up 107% year-on-year. Green infrastructure is the most important investment area that China is relying on to boost its weak economy in the second half of 2022. The investment growth trend follows China’s strategy to build new renewable generation capacity so that it can replace its existing coal fleet. China is well on track to hit its 1,200 gigawatt wind and solar capacity target by 2030. —Nannan Kou, BNEF’s head of China analysis Offshore wind was another bright spot, with investment up 52% from the previous year, to$32 billion.

Investments in 2022 will flow into projects coming online in the next few years as the offshore wind installed base is set to grow tenfold from 53GW in 2021 to 504GW in 2035. Offshore wind projects enable companies and governments to make progress towards their decarbonization goals at scale. The United Kingdom, France and Germany are just a few of the countries that have increased their offshore wind targets in the first half of 2022, signaling further support for investment in the technology.

—Chelsea Jean-Michel, offshore wind analyst at BNEF

' Green hydrogen now costs less than natural gas in eight European countries. Liquefied natural gas prices will come back to earth, but not without leaving a lasting impact on the multipurpose wonderfuel.

High LNG prices mean green hydrogen—produced by a renewable-powered electrolyzer splitting water—is cheaper to burn than natural gas in France, Germany, Italy, Poland, Spain, Sweden, Turkey and the U.K., according to research by BloombergNEF. '

https://www.wsj.com/articles/green-hydrogen-is-cheaper-than-lng-in-europe-11658312552

Since renewables are intermittent, in reality the grid to power electric cars is also dependent on fossil fuel costs in Europe.

Hydrogen production means that energy from renewables when in surplus, which is currently still largely thrown away, can be stored.

The big hang up is simply that there are not a lot of electolysers installed, although that is increasing massively:

https://www.enlit.world/hydrogen/european-electrolyser-partnership-unveiled-as-green-hydrogen-catalyst/

' The current regional capacity is estimated at 1.75GW per year. To meet the RePowerEU 2030 renewable hydrogen production target of 10Mt would require an estimated installed electrolyser capacity of 90-100GW, depending on the utilisation factors and efficiency rates.'

And:

' In the May joint declaration the parties committed to have in place by 2025 a combined electrolyser capacity of 17.5GW and to further scale that up by 2030 in line with projected demand for renewable and low carbon hydrogen.

The declaration stated that manufacturers were already undertaking projects to increase the manufacturing capacity.'

So a tenfold increase in capacity in three years, and the investment is actually happening.

China, in spite of having the world's lowest electrolyser costs, is taking it relatively slowly out to 2025: