Renewable Energy Investment Market Size to grow by USD 181.9 billion between 2024-2028

Technavio, a leading provider of market research reports, has released its latest study on Renewable Energy Investment Market. This report offers a comprehensive analysis of the current market trends, emerging opportunities, and key challenges. In the renewable energy investment market, utility-scale renewable energy projects, which exceed 10 MW in capacity, are subject to unique considerations due to their size and customized nature. These projects are significantly influenced by state and local policies and initiatives, designed to streamline development and reduce impediments through financial mechanisms such as tax incentives and clean energy targets. However, determining the cost-effectiveness and efficiency of renewable energy versus traditional electricity generation sources can be challenging for stakeholders, necessitating a thorough analysis of the economic landscape and regulatory frameworks.

Key Highlights

Growth Projections

The global renewable energy investment market  size is estimated to grow by USD 181.9 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  8.11% during the forecast period. Supportive government policies is driving market growth, with a trend towards increased spending on utility-scale renewable energy projects  However, competition from fossil fuels  poses a challenge.Key market players include AZORA CAPITAL SL, Bank of America Corp., Berkeley Partners LLP, BlackRock Inc., BNP Paribas SA, Capital Dynamics Holding AG, Centerbridge Partners LP, CHN ENERGY Investment Group Co. Ltd., Citigroup Inc., Deloitte Touche Tohmatsu Ltd., EKF, ESFC Investment Group, General Electric Co., KfW Bankengruppe, Macquarie Group Ltd., Mitsubishi UFJ Financial Group Inc., Nebras Power, Positive Energy Ltd., State Power Investment Corp., TerraForm Power Operating LLC, and The Goldman Sachs Group Inc..

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Major Findings

• The renewable energy investment market has experienced significant growth due to supportive government policies worldwide. Governments have implemented various incentives, such as subsidies, tax credits, and renewable portfolio standards, to encourage the adoption of renewable energy sources. These policies have created a favorable business environment, attracting substantial investments from both public and private sectors. As a result, the renewable energy sector continues to expand, driving innovation and reducing reliance on fossil fuels.


• The renewable energy investment market is experiencing significant growth due to the increasing demand for sustainable energy sources. Renewable energy, including wind, solar, hydro, and biomass, is becoming an increasingly attractive option for businesses and individuals seeking to reduce their carbon footprint and save on energy costs. Governments worldwide are also investing heavily in renewable energy infrastructure, further fueling market growth. This trend is expected to continue as the world transitions to a more sustainable energy future.


• The renewable energy investment market faces significant competition from traditional fossil fuel industries. Fossil fuels, with their established infrastructure and economies of scale, offer lower upfront costs and have long been the dominant energy source. Renewable energy, on the other hand, presents a more sustainable and environmentally friendly alternative, but requires greater initial investment and technological advancements to be competitive. Investors must carefully weigh the risks and rewards of both sectors, considering factors such as government incentives, market trends, and technological advancements. The renewable energy sector's growth and competitiveness depend on continuous innovation, policy support, and strategic investments.


• The renewable energy investment market faces a significant challenge with the intermittency issue in solar power generation. Solar energy is a clean and abundant source, but its availability is not constant. Intermittency refers to the variability in solar power output due to weather conditions and time of day. This unpredictability poses challenges for grid stability and energy storage requirements. Investments in advanced solar technologies, energy storage solutions, and smart grid infrastructure are essential to mitigate the intermittency problem and ensure a reliable and sustainable energy future.

Market Research Overview

The global renewable electricity market encompasses businesses involved in the production and distribution of electricity derived from sustainable sources. This market scope encompasses the consolidated revenue of independent power producers, gas and power marketing and trading experts, integrated energy merchants, and renewable electricity providers. Additionally, it includes manufacturers of raw materials and equipment utilized in the solar power sector. The expansion of the global renewable electricity market is propelled by several factors, including supportive policies and ambitious targets for the deployment of renewable power. Over the past decade, the adoption of renewable energy sources has witnessed substantial growth due to these effective initiatives.

The Renewable Energy Investment Market is experiencing significant growth, fueled by the Supportive government policies. Businesses are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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Regional Insights

In the dynamic business landscape, renewable energy investments have emerged as a lucrative and sustainable opportunity for forward-thinking organizations. This sector's growth trajectory is undeniable, with significant capital inflows from global investors. Renewable energy projects, such as solar, wind, and hydroelectric power, offer attractive returns and long-term stability, making them a wise investment choice for businesses seeking to minimize carbon footprints and secure energy independence. The renewable energy investment market is poised for exponential growth, presenting ample opportunities for strategic partnerships and innovative solutions.

Research Analysis Overview

The renewable energy investment market is experiencing significant growth as the world shifts towards decarbonization and grid resilience. The Tax-credit transfer market is playing a crucial role in facilitating investments in renewable energy projects, particularly in the context of clean energy laws and renewable portfolio standards. According to the International Energy Agency (IEA), renewable energy capacity additions are expected to increase by 50% by 2025, driven by utility-scale solar and offshore wind. Policy developments, including carbon reduction targets and the Paris Agreement, are pushing for a rapid transition to renewable energy sources. The UN Climate Change's Energy Transitions Stocktake reports that renewable energy investments reached USD300 billion in 2020. The infrastructure investment in renewable energy is also essential for energy security and affordability. Generative artificial intelligence is being used to optimize renewable energy generation and power system integration, making the energy transition more efficient and cost-effective. The demand for biofuels is also increasing, and advancements in wind and solar technology are making these sources increasingly competitive with traditional energy sources. Federal investments in renewable energy are crucial for the growth of the sector, particularly in areas such as manufacturing and research and development. The electricity generation mix is shifting towards renewable sources, with renewable energy accounting for over 30% of global electricity generation in 2020. However, challenges remain, including the energy crisis and the need for energy transitions to be equitable and just for all.

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