Renewable Energy: Russia, Turkey, Ukraine and Serbia are on track to attract $665bn in ‘climate-smart’ investment over the next 15 years, according to a new report from the The International Finance Corporation (IFC), Climate Investment Opportunities in Emerging Markets. Around $410bn of this sum is likely to be earmarked for the construction of green buildings and $78bn for transport infrastructure, with the lion’s share of investment in the renewable energy sector going to Turkey, which the IFC predicts will attract $16.4bn for wind energy, $7.4bn for solar power, $3.4bn for geothermal and $560m for hydroelectric projects. Overall Russia is set to receive a total of $313bn, Turkey $270bn Ukraine $73bn and Serbia $9bn.
The report also concludes that:
- Russia’s levels of energy intensity, which are running at 2.5 times the world average, mean that the country is losing more than 40% of its annual energy generation – equivalent to the France’s yearly primary energy consumption. The sustained weakness of the rouble is, however, invigorating the market for renewables.
- Ukraine’s economy is the fifth most energy-intensive in the world, and over two thirds of the country’s infrastructure is outdated, but the investment potential for power generation from renewable sources – including biomass, solar PV and wind energy – is considerable.
- Turkey’s population has expanded by 30% since 1990 and last year its GDP growth outpaced most G20 countries – but its rate of energy demand is also increasing and is expected to grow by about 5.7% for the foreseeable future.
- Although the Serbian government approved new legislation supporting the renewables sector in the summer and has good wind-power potential, its top priority remains economic growth.