Investment in renewable energy around the world is for the first time higher than fossil-based energy sources, according to a report by the Bloomberg New Energy Finance research institute.
The attractiveness of renewables as a long-term investment option is continuously growing, due to the current favorable prices for photovoltaic systems and wind turbines, the report was cited by Trade Arabia. Despite lower prices for fossil-based energy sources, investments in renewable energies enjoyed continuous growth between 2004 and 2015. In 2015, global investments in renewables reached $329 billion, overtaking those in fossil-based energies that reached $253 billion.
The reason for the surge in investments is the cost: Prices for photovoltaic modules have dropped since 2008 by around 80% and for wind turbines by around 50%. Although prices for fossil-based energies also sank between 2014 and 2016, the G7’s decision in 2015 to decarbonize the energy sector in the G7 countries by 2050 will necessitate a realignment in the area of climate protection.
