FOREIGN INVESTMENT PRIORITIES ON RENEWABLE ENERGY PROJECTS

Abstract

The interrelationship in regards to solving worldwide problem on reducing natural energy reserves and developing environmentally friendly ways to obtain them, basing on non-traditional and renewable energy sources (RES), is described in the article. The dynamics and structure of investment infusion into renewable energy projects in the world through the period of 2009 to 2019 are analyzed. The regional and sectoral analysis on the financial resources directness that stimulated the development and generation of “green” energy is carried out. It has been found that China, the USA, Japan and a number of European countries account for the largest amount of investments into the renewable energy over the period under study. It is substantiated that the decrease in the growth rate of energy consumption within economically developed countries is related to a number of factors, including the relocation of the center of global industrial production to the Asian continent, investments priorities in energy-saving technologies rather than the production of energy itself, the increase of ecological criteria, environmental and consumption standards. The reorientation of international investment flows from developed countries to developing countries has been identified, which is stipulated by the access to resources and cheaper generation of energy currents in the sector of renewable energy. On the basis of the conducted sectoral analysis, the segments of alternative energy have been identified, which show the highest dynamics of development, in particular, solar and wind power. The importance of institutional support for attracting foreign investment into this specified field is emphasized, in particular, through the development and implementation of national alternative energy incentive programs. The effectiveness of both investment and financial instruments of the stimulation and predominance of much more active use of subsidies for the development of hydrogen alternatives of energy resources in economically developed countries compared to developing countries and countries with transition economies is noted on. The importance of international coordination of alternative energy development efforts and the important role of global regulators in achieving these goals have been identified. Among the most active international institutions, which has stopped financing projects on oil and other kinds of mined fuel, the World Bank is recognized, as well as the International Finance Corporation with its initiative to set up a Green Cornerstone bond fund for emerging markets.