Clean energy investments may close 2022 hitting new heights, setting stage for lofty 2023
In case anyone asks, 2022 was all about energy — natural gas, oil, renewables, all of it. Natural gas prices surged early as Vladimir Putin’s poorly thought-out decision to invade Ukraine slashed gas deliveries to Europe. That, coupled with high oil prices, substantially contributed to near-record-setting inflation that forced central bankers to raise interest rates.
That inflation helped spur the passage of the Inflation Reduction Act, which contains several provisions to boost renewable power, ready the grid for its arrival and foster the development of other alternative sources of energy.
Taken together, those developments — along with what investors have told me is a desire for safe returns — have sent dollars flocking to clean energy. Venture capital activity in the sector through Q3 is on track to match 2021’s record highs, according to a new report from PitchBook.