{"id":23900,"date":"2017-10-18T00:53:00","date_gmt":"2017-10-17T22:53:00","guid":{"rendered":"https:\/\/www.sonnenseite.com\/economy\/emerging-markets-excellent-for-solar-investment.html"},"modified":"2017-10-18T00:53:00","modified_gmt":"2017-10-17T22:53:00","slug":"emerging-markets-excellent-for-solar-investment","status":"publish","type":"post","link":"https:\/\/www.sonnenseite.com\/en\/economy\/emerging-markets-excellent-for-solar-investment\/","title":{"rendered":"Emerging markets: Excellent for solar investment"},"content":{"rendered":"

By leveraging falling prices, innovation, or leapfrogging past old infrastructure, emerging markets offer golden opportunities for solar investment.<\/p>\n

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The 2016 Climatescope report<\/a>—which focuses on the state of cleantech markets within 58 developing nations in Africa, Asia, Latin America, & the Middle East—renewable energy investment in developing countries are more attractive than the developed counterparts. Thus, affirming that emerging markets<\/a> offer excellent opportunities for solar energy investment, which should make investors very happy.<\/p>\n

The report adds that emerging markets had more investment in 2015 than its Organisation for Economic Co-Operation (OECD) & developed counterparts (USD 154 billion vs. USD 153 billion) and renewable energy capacity (69.8 GW vs. 59.2 GW). <\/p>\n

And this is just the tipping point.<\/em><\/p>\n

Recently, the Asian Development Bank (ADB) invested heavily in Sri-Lankan solar power, confirming why emerging markets are a hot destination for solar investment. According to<\/a> CNBC.com, the ADB had approved $50 million in loans to advance Sri-Lankan solar power generation.<\/p>\n

Energy specialist at the ADB Mukhtor Khamudkhanov said to CNBC that Sri-Lanka has made gains in adding electricity within the country over the past 20 years, and believes its essential to make the nation’s energy more environmentally sustainable.<\/p>\n

“But there is a need to diversify the country’s energy mix toward more renewable and sustainable sources,” he said.<\/p>\n

The ADB sees the possibilities in solar energy investment<\/a> within developing nations. Here is why emerging markets offer abundant opportunities for solar investment.<\/p>\n

A 2016 Quartz article pinpoints<\/a> the critical driver why solar is becoming a more attractive investment option. The article points to a World Economic Forum report which said wind and solar are now cost competitive with fossil fuels.<\/p>\n

According to the analysis, solar is expected to be half of the electricity price<\/a> of natural gas within 10-20 years.<\/p>\n

However, that may come sooner than expected, as SolarPack bid to provide solar electricity in parts of Chile at 58% lower than natural gas ($29.1\/MWh). ClimateScope also projects solar bids are becoming cheaper against their fossil fuel competition.<\/p>\n

Falling prices will no doubt sweeten the pot for investors if they are on the fence on investing in solar energy within these regions.<\/p>\n

Reason 2: Developing nations are beginning to compete with developed nations on innovation.<\/strong><\/p>\n

Mainland China was ranked 27th in a recent World Economic Forum study<\/a> on competitiveness while being level or better than many developed nations on innovation. Chief representative of the World Economic Forum’s China outlet David Aikman told China Daily<\/a> its prowess as an innovator has been the most critical development for them within the past ten years.<\/p>\n

The proof is visible with the nation’s solar industry. <\/p>\n

China toped globally in total solar capacity in 2016<\/a> with 78GW, according to the International Energy Agency Photovoltaic Power System Programme (IEA-PVPS). <\/p>\n

If China is any indication, and with billions of middle-class customers<\/a> coming from emerging markets, expect innovation to explode, and entice more solar development.<\/p>\n

Reason 3: Paris Climate Agreement will open up the floodgates for solar investment.<\/strong><\/p>\n

In 2015, the Paris Climate Accord brought over 190 countries to bring global warming to well below 2C of pre-industrial levels, while targeting 1.5C. This opens a wealth of opportunity for solar in developing nations. <\/p>\n

The International Finance Corporation, a World Bank group, predicts climate investment for emerging markets will reach USD 23 trillion by 2030<\/a>. Latin America is primed to grow their solar markets, with USD 3.8 billion invested in 2015. Wind energy was tops in the region with USD 10.7 billion.<\/p>\n

With extreme weather events<\/a> expected to increase from a warming planet and effect those areas most vulnerable<\/a>, including emerging market countries, will find seek solar investment as a mitigation tool in trying to avoid the worst effects of climate change. <\/p>\n

Reason 4: Leapfrogging past fossil fuel infrastructure.<\/strong><\/p>\n

At a social level, there is another reason than for emerging market countries to entirely build a new clean infrastructure from scratch, rather than copy what developed nations went through using fossil fuels to grow their economies.<\/p>\n

Former French President Francois Hollande told<\/a> the Organisation for Economic Co-Operation and Development 2015 Annual meeting, developing nations have a chance to kill two birds with one stone in developing their economies, while supporting low carbon energy systems.<\/p>\n

Hollande said leapfrogging<\/a> in emerging markets past fossil fuel use to clean energy is the equivalent of when mobile phones penetrated the African market<\/a>, thanks to falling costs. Traditional landline infrastructure became irrelevant.<\/p>\n

“The digital revolution and the energy revolution will go hand in hand as in a sense we are talking about the same revolution,” Hollande said to The Guardian<\/a>. <\/p>\n

Whether its falling prices, the rise of innovation, leveraging climate investments<\/a> or leapfrogging past old infrastructure, developing nations will offer golden opportunities for solar investment.<\/p>\n

Source<\/h5>\n

pvbuzz|media | Adam Johnston, Renewable Energy Analyst 2017<\/a><\/p>\n

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