(3BL Media/Justmeans) - REN21, the Paris-based, multi-stakeholder, global renewable energy policy network, just released their Renewables 2017 Global Status Report (GSR), the world’s most comprehensive annual overview of the state of renewable energy. Over 800 individuals contributed to the report. Highlights include the fact that a record-setting 161 GW of new capacity was added, a 9% increase from last year. Although that’s an impressive achievement, it actually represents a 23% decrease in financial investment from the year before. Christine Lins, Executive Secretary for REN21, told Justmeans that “the key message for 2016 was that investors could get more for their money.” While it’s good news that costs have come down enough to enable this, if we are to meet the targets set in Paris, especially in light of President Trump’s withdrawal of support for the agreement, we need to see investments increasing rather than decreasing.
Still, the decreasing costs will be the prime driver for continued investment. Recent deals in Denmark, Egypt, India, Mexico, Peru and the United Arab Emirates saw renewable electricity being delivered at USD 0.05 per kilowatt-hour or less, well below equivalent costs for fossil fuel and nuclear generation in each of these countries.
When asked about the Trump withdrawal, Lins said, “What we’ve seen so far is that President Trump’s announcement has created a lot of united voices around the globe, of countries announcing that they are going to stick to the Paris agreement. Right now, renewables are cost-competitive in many situations with fossil fuels. With him as a businessman, it’s quite surprising to see him taking that step.”
As others have pointed out, it will take three and a half years to fully withdraw from the agreement, and by that time, we could be looking at another administration. Lins also pointed out that within the US, numerous state and companies were reaffirming their commitments to the goals agreed upon in the Paris accord. It was concerns over what Trump might do that hastened the ratification of the accord last year.