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Thanks to fossil fuel crisis, wind and solar payback time drops to one year
(Climate Home News, 17 Oct 2022) Capital investment in renewables worldwide is set to outstrip oil and gas spending on new projects by almost $US50 billion this year, with soaring electricity prices reducing the payback period for solar and wind installations to less than a year, new research shows.
A Report from Rystad Energy says investment in renewables is forecast to reach US$494 billion in 2022 versus $US446 billion for oil and gas – the first time investment in renewables is set to be higher than for oil and gas.
The Rystad analysts say high spot electricity prices, particularly in Europe, are rewriting the utility wind and solar investment narrative as potential investment payback periods of under a year put extra shine on renewables energy economics.
“Capital investments in renewables are set to outstrip oil and gas for the first time this year as countries scramble to source secure and affordable energy,” says Rystad’s Michael Sarich.
“Investments into renewables are likely to increase further moving forward as renewable project payback times shorten to less than a year in some cases.”
Climate Home News, 17 Oct 2022: Thanks to fossil fuel crisis, wind and solar payback time drops to one year
