Renewable Energy
Investment Tracker,
2H 2022Best-ever first half for renewables investment

Divya Sehgal

August 2, 2022

ABRIDGED VERSIONExecutive summary
This report summarizes BloombergNEF’s tracking of global investment
in renewable energy up to and including 1H 2022. Globally, there was$226 billion of new investment in renewable energy in 1H 2022, an alltime high for a first half. The surge was driven by increased investment
in renewable energy projects, venture capital and private equity funding.
● This report covers new investment in renewable energy capacity, and$226 billion
63%

Global new investment inrenewable energy in 1H 2022,
including corporate finance
Increase in renewable venture
capital and private equity
funding compared to 1H 2021

equity raising by specialist companies in renewables and related areas
Year-on-year growth in new
such as energy storage. Overall, $226 billion was invested inlarge-scale solar investment
renewable energy in 1H 2022, a year-on-year increase of 11% and an
all-time record.
● The majority ($206 billion) of this was for project deployment (asset
finance and small-scale solar). Renewable energy and related
Global new investment in renewable energy
companies raised a total of $10.5 billion on public markets in 1H 2022,$ billion
down 65% from last year. VC/PE expansion investments totaled $9.6
180billion, up 63% from 1H 2021.
160● Investments in new large-scale renewable energy projects were up
140
12% from the same period in 2021, at $152 billion in 1H 2022.
120
Investment in new large and small-scale solar projects rose to a100
record-breaking $120 billion, up 33% from 1H 2021. Wind financing80
was up 16% from 1H 2021, at $84 billion.
60● China was the largest market yet again, investing $98 billion in the first40
half, up 128% compared to the same period in 2021. The U.S secured
20$12 billion while Japan drew $5 billion.
0● This pack also shows trends in ‘funds in circulation’, which includes
the refinancing of projects, mergers, acquisitions and buyouts. These
deals totalled $86.7 billion in 1H 2022, up 7% year-on-year.
● BNEF also publishes an annual report called Energy Transition
Solar
Wind
Corporate finance
Biofuels
OthersInvestment Trends (web). That report covers more sectors of the
Two-quarter running averageenergy transition. This report is more narrowly focused on renewableenergy and covers both asset finance and corporate finance.
Source: BloombergNEF

Q1 2004
Q4 2004
Q3 2005
Q2 2006
Q1 2007
Q4 2007
Q3 2008
Q2 2009
Q1 2010
Q4 2010
Q3 2011
Q2 2012
Q1 2013
Q4 2013
Q3 2014
Q2 2015
Q1 2016
Q4 2016
Q3 2017
Q2 2018
Q1 2019
Q4 2019
Q3 2020
Q2 2021
Q1 202227%

1

Renewable Energy Investment Tracker, 2H 2022

Table of contents
Highlights

3

Definitions

10

Quarterly trends, all new investment in renewable energy

16

Quarterly trends, new-build asset finance

31

Quarterly trends, corporate finance

35

Quarterly trends, all funds in circulation

39

Top deals

43

Annual trends, new investment

47

2

Renewable Energy Investment Tracker, 2H 2022

Highlights
Key trends in 1H 2022

3

Renewable Energy Investment Tracker, 2H 2022

New investment in renewableenergy surged year-on-year● Global new investment in renewable energy

Quarterly new investment in renewable energy, 2018 – 1H 2022

hit $226 billion in the first half, up 11% fromlast year. This was the highest ever first half
for investment in renewables, supported byrecord venture capital and private equity
funding. Both 1Q and 2Q 2022 werestronger quarters than in 2021. However,investment has dropped 12% relative to avery strong second half of 2021.

$ billion
180
162.2
160

● The first-half totals in 2022 and 2021

140
120.3

119.3

120

107.9
99.3

100

86.6

84.0
80

73.9
64.8

97.8
84.8

79.0

106.4
95.2

95.2

compare favourably to those of 2020 and
2019, when the total investment was only$183 billion and $140 billion, respectively.
● Venture capital and private equity expansion

82.6

commitments to renewable energy
companies totalled $9.6 billion in 1H 2022,
up 63% from last year. New equity raised on
the public markets totalled $10.5 billion,
down 65% compared to previous year.

69.8
60.6

60
40

● Investment in large-scale renewable
20
0
Q1

Q2

Q3

Q4

Q1

Q2

2018

Q3

Q4

Q1

Q2

2019
Asset FinancePublic Markets

Source: BloombergNEF

4

Renewable Energy Investment Tracker, 2H 2022

Q3

Q4

Q1

Q2

Q3

2020

2021

Small Scale Solar

VC/PE

Q4

Q1

Q2

2022

projects was up 12% year-on-year in thefirst half. Utility-scale solar asset financeincreased 27% year-on-year, while windasset finance was up 16% year-on-year.
Investment in other sectors, such as
biomass, waste-to-energy and small hydro,fell.

China continues to lead the world on
solar investments
Investment in new solar projects: large-scale asset finance by region
plus small-scale$ billion
100

80
61

56
60

47

59

50

36

36

33

33

32

36
31

38

Dabieshan Power Generation Co Ltd andMacheng Energy Investment Development
Co Ltd finance $1.1 billion for the build of a
1,300MW PV plant located in Hubei
Province, China.

38

34

30
20

● We have less visibility on small-scale solar

10
0
Q1

Q2

Q3

Q4

2018

Q1

Q2

Q3

Q4

Q1

Q2

2019

AMER

Q3

Q4

Q1

Q2

2020

APAC

EMEA

Source: BloombergNEF

5

China which made up $41 billion in the firsthalf of 2022, up 173% on the previous
year’s $15 billion. The U.S emerged as thesecond-largest solar market investing $7.5
billion, followed by Japan at $3.9 billion.
● The top deal in 1H 2022 saw Huanggang

40

50
40

50

$66 billion in 1H 2022, up 27% on theprevious year, albeit lower than 2H 2021.
Solar project investment often accelerates
in the second half of the year to meet yearend deadlines● Market growth was driven by investment in

88
90

70

● New large-scale solar investments totalled

Renewable Energy Investment Tracker, 2H 2022

Small-scale solar

Q3

2021

Q4

Q1

Q2

2022

investment (much of which is in Europe)
due to lagging data availability.
Nonetheless, pricing and customs data
indicators suggest it is continuing at ahealthy rate nearly everywhere.

APAC drove the global growth forinvestment in wind projects
Investment in wind projects by region● Wind investment in 1H 2022 , including new$ billion
79.5

79.1

50.1

49.0 48.9

57.1

68.1
56.4

● Investment in China, the world’s largest

36.2

35.0

30.5

Q1

66.4

50.2

46.9 45.0

77.4

76.5

66.5

build and refinancing, topped $124.5 billion,a notable increase from the $97.9 billion
invested in 1H 2021. $84 billion of this wasfor new projects.
wind market, hit $ 57.8 billion in 1H 2022, up
107% from last year, followed by the U.S at$19.7 billion, up 9% compared to last year.

Q2

Q3

Q4

Q1

2018

Q2

Q3

Q4

2019
AMER

Q1

Q2

Q3

Q4

Q1

2020
APAC
EMEA

Q2

Q3

Q4

Q1

2021

Q2

2022

By subsector● APAC recorded its highest-ever total at$66.8 billion, up 72% from the previous
year. EMEA slipped 7% while AMER
remained steady at $25.7 billion.
● Onshore wind investment in 1H 2022 totaled$ billion
79.5

79.1
66.5

57.1

50.1

56.4

49.0 48.9$92.4 billion, the highest first-half total onrecord. APAC was a key contributor with
China alone making up 44% of the total byinvesting $41 billion.
● Offshore wind investment in the first half

36.2

35.0

30.5

68.1

66.4

50.2

46.9 45.0

77.4

76.5

increased 52% from the same period lastyear to $32 billion.
● The financing of the 1,000MW China Three

Q1

Q2

Q3

Q4

2018

Q1

Q2

Q3

Q4

Q1

2019
OnshoreQ2

2020
Offshore

Source: BloombergNEF

6

Q3

Renewable Energy Investment Tracker, 2H 2022

Q4

Q1

Q2

Q3

2021

Q4

Q1

Q2

2022

Gorges Yangjiang Yangxi Shapa
Qingzhouwu Offshore Wind Farm for $2.1
billion was the largest deal during thisperiod.

Public market issuances for renewableenergy companies fell in 1H 2022
● Public equity markets provide the

Public market investments in renewable energy and storage

financing environment for many of thelarge and established players in
renewable energy, including
manufacturers, developers and somefunds.

$ billion

22

20.8

20

● After a very strong first half in 2021, public
18
16

market issuances dropped 65% in 1H
2022, totaling $10.5 billion. The 2Q figure,at $3.9 billion raised, is the lowest
quarterly total since 2Q 2020.

14.4

14

● Among the largest share offerings in the

12
9.0

10
7.0

8

8.4
6.8

6.6

6
4
2

2.2
0.8

0.7

0.9

Q1

Q2

Q3

1.9

1.8

Q2

Q3

2.5

3.9

3.1
1.9

0.8

0
Q4

2018

Q1

Q4

Q1

2019
Secondary & PIPE

Q2

Q4

Q1

2020
IPO

Source: BloombergNEF

7

Q3

Renewable Energy Investment Tracker, 2H 2022

Q2

Q3

2021
Convertible

Q4

Q1

Q2

2022

first half, China-based renewable energy
generator Tongwei Co Ltd raised $1.9
billion, PV manufacturer Jinko Solarraised $1.6 billion, and wind equipment
manufacturer Sany Heavy Energy Co Ltd
pulled in $837 million.

VC/PE investment achieves bestever first half
● Venture capital and private equity expansion

VC/PE expansion investments in renewables and storage

capital have been key elements in thegrowth of renewable energy and storage
since these technologies emerged. Young
companies have tapped specialist earlystage funds for capital, ahead of seeking
public market flotations or trade sales.

$ billion
6
5.1
5

4.7

● In 1H 2022, VC/PE expansion investment in
4.5

4.5

4
3.4

● The U.S emerged as the leading market in

the first half, investing $4.8 billion, followedby Germany at $1 billion and France pullingin $663 million.

3
2.3

2.2

● The largest deals in the first half included

2
1.4

1.4

1.3
1.0

0.7

1

1.3

$755 million for Silicon Ranch Corp, a U.Sbased solar project developer, and $500
million for BrightNight LLC, a U.S-based
renewable energy project developer.

1.2

0.8

0.6

0.5

0.4

● Please see our Investment Radar (web |

0
Q1

Q2

Q3

Q4

2018

Q1

Q2

Q3

Q4

Q1

Q2

2019
Venture Capital

Q3

Q4

2020
PE Expansion

Source: BloombergNEF

8renewable energy and storage companies
hit $9.6 billion, up 63% on the previous year.
This was an all-time record in this space

Renewable Energy Investment Tracker, 2H 2022

Q1

Q2

Q3

2021

Q4

Q1

Q2

2022

terminal) for more on climate-tech VC/PE
financing. That report has a wider scopethan this one, covering areas beyond
renewable energy.

Global M&A activity rose to a new
first-half record● Merger and acquisition activity is an

Global M&A/PE buyout investments in renewables and storage

important part of the renewable energy
financing picture. These deals do not provide
new money for technologies and developers
but they enable early investors to make exits
and redeploy capital on fresh opportunities.

$ billion25

23.7● In 1H 2022, corporate M&A and private

equity buyouts totaled $29.3 billion, up 25%
on the previous year’s $23.5 billion. This is
the highest ever first-half total.

20● In terms of deal count, the U.S. emerged as

15.9
15

13.4

13.2

12.3

14.7

14.3

13.4

12.8
11.7

● Among the biggest deals in this category

10.1
9.2

10
7.7

were Chevron Corp’s acquisition of
Renewable Energy Group for $2.8 billion.
This was followed by Falck Renewables
SpA’s acquisition by IIF International Holding
for $2.6 billion. Japan Renewable Energy Co
Ltd’s buyout by ENEOS Holdings Inc for $1.7
billion was the third-largest deal.

9.2

8.6
6.8

5.5

5.3

5

● It is increasingly common for corporate

0

Q1

Q2

Q3

Q4

2018

Q1

Q2

Q3

Q4

2019

Q1

Q2

Q3

2020
MA

PE Buyout

Source: BloombergNEF

9

the most active market in 1H 2022, followedby China and India.

Renewable Energy Investment Tracker, 2H 2022

Q4

Q1

Q2

Q3

2021

Q4

Q1

Q2

2022

entities to acquire the shares of developers
with sought-after development and land
rights for renewable projects rather than theassets themselves. This approach allows
investors to secure these pipeline projects
while managing risk exposure.

Definitions
What’s in this report

10

Renewable Energy Investment Tracker, 2H 2022

Definitions
Types of funding
New investment
This category refers to new investment into renewable energy capacity, and equity raising by specialist companies in renewables and relatedareas such as energy storage.
Coverage includes:•
Asset finance – new builds: The new-build financing of renewable energy generating projects•
Small-scale solar: Given the difficulties in tracking small-scale solar projects, BloombergNEF's asset finance database excludes projects
below roughly 1MW. Unlike utility-scale asset investment, our small-scale solar investment figures are based on top-down analyst estimates.
•
Venture capital / private equity (VC/PE): Expansion capital where early-stage companies receive funding•
Public markets: Equity raising for larger, more established players. This may be through IPOs or follow-on offerings like secondaryofferings, private investment in public equity, or PIPEs, convertibles etc.

Funds in circulation
Unlike ‘new investment’, our ‘funds in circulation’ category is not new money for technologies and developers. Instead, these funds include
acquisitions and refinancing of existing assets, enabling early investors to make exits and redeploy capital on fresh opportunities. Mergers andacquisition activity is an important part of the renewable energy financing picture.
Coverage:•
Asset finance: Acquisitions: financing for the complete/partial acquisition of a project or portfolio.
•
Asset finance: Refinancings: when a project is refinanced, the owner/developer takes out a new loan for an existing project or reschedules
payments and terms on the existing loan•
Mergers and acquisitions (M&A): Transactions in which the ownership of companies generating revenue from renewable energy aretransferred or consolidated with other entities•
Public market exits: Funds raised by publicly-quoted pure-play renewable energy companies on the capital markets•
Private equity buyouts: The acquisition of a controlling interest in a private corporation

11

Renewable Energy Investment Tracker, 2H 2022

Definitions
Asset classes
Asset finance
The new-build financing of renewable energy generating projects. These projects include both electricity generation and biofuels production
assets. Projects may be financed off the owner's balance sheet, or through financing mechanisms such as project finance, syndicated equityfrom institutional investors, or project bonds underwritten by banks.

Small-scale solar
Small-scale solar investment is included in our asset finance charts, but the figures are based on top-down analyst estimates. This is because,
given the difficulties in tracking small-scale solar projects, BNEF’s asset finance database excludes projects below roughly 1MW.

Corporate finance● Venture capital and private equity (VC/PE): Early and late-stage venture capital funding rounds of pure-play renewable energy companies

as well as funds raised privately for the purposes of expansion.
● Public markets (PM): Funds raised by publicly quoted or OTC pure-play renewable energy companies on the capital markets. This may bethrough IPOs or follow-on offerings like secondary offerings, private investment in public equity, or PIPEs, convertibles, etc.
Note that our corporate finance deal data includes companies in areas adjacent to renewable energy, such as energy storage, smart grids andfuel cells.

12

Renewable Energy Investment Tracker, 2H 2022

Definitions
Asset finance sectors
WindElectricity generation projects using wind turbines, both onshore and offshore.

Solar
All technologies that capture energy directly from the sun. These include production of electricity using semiconductor-based photovoltaic (PV)materials, and use of concentrated sunlight to heat fluids that drive power generation equipment (solar thermal).

Biofuels
Liquid transportation fuels including biodiesel and bioethanol. These can be derived from a range of biomass sources, including sugar cane,rapeseed, soybean oil or non-food cellulosic feedstock.

Other renewables
Includes small hydro - hydro projects with capacities smaller or equal to 50MW; geothermal - extraction of useful power from heat stored in theearth; marine - the extraction of tidal, wave and thermal energy from the ocean, and biomass & waste.

13

Renewable Energy Investment Tracker, 2H 2022

Accessing the underlying data inthis report
There are three ways for BNEF clients to access the underlying data in this report.
1. Download the Excel workbook published alongside this report. This contains the data behind each of the charts in this report.
a. Bloomberg Terminal users can do this by running 97<GO> while viewing this report on the Terminal.
b. Clients can also download it from the BNEF website, by going to the summary page for this report and clicking on theleft of the page.

icon to the

2. To see primary data on the underlying transactions, go to the BNEF website ‘Transactions’ interactive data set.

– This tool shows individual deal data, excluding undisclosed deal values and buffers, whereas the charts in this report include BNEF’s
estimates and buffers for undisclosed deals. So the figures in this report will be higher than in the web interactive data set.
– Note that the Transactions tool is currently not showing public markets data.
3. The ‘Energy transition investment’ interactive data set houses our wider estimation of project investment across the energy transition(excluding corporate finance). This includes not only renewable energy (the focus of this report), but also electrified transport, heat, hydrogen,energy storage and carbon capture. However, only renewable energy data is captured quarterly – all other sectors are shown annually.
– Filter for supersector ‘Renewable energy’ to see data equivalent to the scope of the asset finance section of this report. The tool does notinclude any corporate finance data, as it is focused on investment in projects and hardware.
– Change the time period to ‘quarterly’ to see the data in quarterly time periods, similar to the majority of charts in this report.

14

Renewable Energy Investment Tracker, 2H 2022

How does this report fit with BNEF’s
other investment reports?
BNEF also publishes an annual report called Energy Transition Investment Trends (web | terminal), as well as a bi-monthly Investment Radar(web | terminal). This report differs from those in scope: it is focused on renewable energy (leaving out other sectors of the energy transition) andincludes both asset/project finance and corporate fundraising.

Key BNEF publications covering investment trends
Publication

Frequency

Sectors covered

Asset classes

Renewable Energy
Investment Tracker(this report)

Half-yearly

Renewable energy

Project / asset
investment andcorporate fundraising

Investment Radar(web | terminal)

Every 2 months

All sectors of energy
transition + climate-tech

Corporate fundraising
only (VC, PE, publicmarkets)

Energy Transition
Investment Trends(web | terminal)

AnnualAll sectors of energy
transition

Project / asset
investment andcorporate fundraising

Note: Other sectors covered in other reports include low-carbon transport, buildings, industry and agriculture, as well as hydrogen, nuclear energy and carbon capture.

15

Renewable Energy Investment Tracker, 2H 2022

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