Developing nations embrace renewable energy

New Delhi, June 24: Developing countries have increased investment in renewable energy, accounting for one-fifth of the world's total last year, according to a new United Nations Environment Programme report.

It stated that investment in developing countries rose from 15 per cent in 2004 to 21 per cent in 2006.

The increase happened largely in Brazil, China and India with significant funding of solar, wind and biofuel sectors.

Nine per cent of the investment occurred in China last year alone, with wind, biomass and waste sectors the most dynamic.

India came second behind China but was the largest buyer of renewable energy companies abroad in 2006, the report said.

Both China and India put more money into local biofuel plants, which were already successful in Brazil.

Latin America accounted for five per cent of last year's investment, most of which financed Brazilian bioethanol plants. But sub-Saharan Africa still lagged behind other regions in investment.

But on the whole the trend was positive and would benefit developing countries in many ways.

Renewable energy had been a traditional sector in Europe and the United States, hence it was quite a change globally to see a fast uptake in developing countries.

The UNEP report stated that the world's total investment in sustainable energy climbed from 80 billion US dollars in 2005 to a record 100 billion dollars last year with research and development in the field rising by 25 per cent to 16.3 billion dollars.

It also reflected the scale of investment -- just two per cent of the world's energy comes from renewable sources, yet renewables had captured 18 per cent of the world's investment in energy generation.

Small-scale projects such as solar roof panels and micro turbines, were attracting increasing interest partly from growing opportunities in developing countries, the report pointed out.

The report attributed the growth to global concerns over climate change and increasing energy demands and energy security, in addition to a persistently high oil prices, growing consumer awareness of energy efficiency and government incentives.

UNI