Earlier this week, The Climatescope 2015 index, an annual report released by Bloomberg New Energy Finance, highlighted that South Africa remains within the global top 10 as an attractive renewable energy investment destination, as it has attracted an estimated $11 billion in clean power investment since 2012.
Clean power: Climatescope 2015 index
The annual report is composed by Bloomberg New Energy Finance (BNEF) on behalf of the UK and US governments, including development agencies, Engineering News reported.
The authors of the report noted: “Climatescope’s primary goal is to present the public with an almanac of clean energy investment and deployment facts on 55 of the world’s most important developing nations, along with 25 Indian states and Chinese provinces.”
The data analysed 55 emerging market countries across the globe and each one’s ability to attract investment for low-carbon energy sources. The scope covered technologies including—wind, solar, geothermal, biomass, small hydro and biofuel.
The clean power study did not include large hydro and nuclear as it’s focus is on technologies that can be deployed easily and have a quick turn-around time for operation.
Africa ranks in Top 10
South Africa was ranked fourth, coming behind China, Brazil and Chile and was ahead of India and Mexico.
East African countries including, Kenya and Uganda, ranked in 6th and 9th place respectively.
South Africa’s rank has been attributed to the country’s successful implementation and drive of “power contract tenders”. Kenya and Uganda’s positions are owed respectively to geothermal policy and investment and an innovative feed-in-tariff programme, GET-FiT Uganda.
BNEF Africa analyst, Nico Tyabji, told Engineering News Online that South Africa’s drop from ranking 3rd in the 2014 report is mainly due to delays in closing deals in 2014, which had subsequently been concluded in 2015. He added that the decline in investment levels in 2014 had been nearly fully compensated for by higher deployment levels during the year.
The report pointed out that 76 new clean energy-friendly policies went into effect in 2014, with more private sector participation.
New stats revealed
The report highlighted that new investment in clean power generation in the 55 countries climbed to $126 billion in 2014, up from $35.5 billion in 2013.
“For the first time, over half of all new annual investment into clean energy power generating projects globally went toward projects in emerging markets. Meanwhile, “South-South” investment (capital deployed in Climatescope nations from in-country sources) surged to $79 billion in 2014 from $53 billion the year prior.”
View the full Climatescope 2015 index.