As renewables have become a compelling investment proposition, investment into new renewable power has grown from less than USD 50 billion per year in 2004, to about USD 300 billion per year in the recent years, exceeding investments into new fossil fuel power by a factor of three in 2018. Yet, renewable investments remain below their potential. Scaled up renewable energy investment, on the foundation of sound enabling policy frameworks, is critical to accelerate the global energy transformation and reap its many benefits, while achieving climate and development targets.
By addressing key risks and barriers, public finance, including climate finance, plays an important role in bridging the financing gap and attracting further investment from the private sector to renewables. Institutional investors, such as pension funds, insurance companies, endowments and sovereign wealth funds, have the potential to scale up major investments. IRENA’s Sustainable Energy Marketplace showcases several financial instruments and funds available to source investment for individual projects.