This year which is slowly passing can rightly be called the year of investment growth in renewable energy sources. The challenges brought by the war in Ukraine have apparently been successfully overcome by the renewable energy sector. So, for example, despite the reserved forecasts for the stagnation of investments in renewable energy sources, after the military crisis due to the difficult procurement chain of repro materials and a large increase in the prices of iron and aluminum, investments in renewable energy sources not only did not stagnate but in 2022, they record a great historical growth.
As a result of increased investments globally, in the first half of 2022 investments in renewable sources worldwide increased by 11%. It is estimated that during this period, the value of investments amounts to 226 billion dollars. The growth of investments in solar energy increased by 33% compared to the same period last year, and in wind energy by 16%. The growth trend of investments in renewable energy sources continues in the second half of the year.
Private investment funds, investors, and financial institutions are all showing increasing interest in investing in renewable energy sources. The quick return on investment, high electricity prices, and high demand for renewable energy are additional factors for investment, which will undoubtedly continue in the next period. Without any doubt, the war in Ukraine is the number one factor for accelerating the energy transition, because the need for energy diversification and energy stability is today the number one goal of both business and political elites.
At the same time, the war in Ukraine caused a high rise in electricity prices on the stock markets, especially in Europe, where the dependence on Russian gas is the highest. But even though the supply of natural gas is the most disrupted, the price of electricity is rising, even though a significant part of the sources of electricity comes from renewable energy sources. The sources for obtaining electricity are different and an increasing part is accounted for by renewable energy sources.
However, the price is rising as a result of interrupted gas deliveries due to the war in Ukraine. It is obvious that this situation is in favor of renewable energy sources. The war in Ukraine not only accelerates the energy transition but also creates favorable conditions for investment as it provides a good return on investment and profit. It is the military crisis that seems to generate more money for investments in renewable energy sources through the high price of electricity in the world stock markets.
In addition, political support and the continuous creation of policies aimed at creating systemic support for investments in green energy are additional positive signals for investors. Political leaders have a clear view that for political stability and energy independence, investments in green energy are the right move.
The trend of investments in renewable energy sources will continue next year, and investment growth is expected. The development of new advanced technologies is additional good news. The overall business climate is in favor of green energy, which is good news for those hesitant investors. If at all there are such, on such investment parameters.