Clean energy spending in Q3 falls 20% Y/Y to USD 56.6bn - BNEF
Oct 9, 2012 - Investment in alternative energy globally in the third quarter of 2012 fell 5% quarter-on-quarter and 20% on the year to USD 56.6 billion (EUR 44bn), with solar sector attracting USD 33.8 billion, Bloomberg New Energy Finance (BNEF) says.
The research firm on Tuesday released figures showing that 2012 is likely to close below the record USD 280 billion that the clean energy industry raised in 2011. BNEF noted that2012 might be the first down-year for green investment for at least eight years. The reasons remain policy uncertainty in major markets, low sector share prices denting public market and venture capital investment and the sharp declines in wind and solar equipment costs, which lead to lower investment requirements.
In terms of sector investment, solar power projects and companies booked USD 33.8 billion, 22% less than a year ago. Wind power attracted USD 15.5 billion marking a 23% year-on-year fall.
Between July and September utility-scale wind, solar and biofuel projects lured USD 32.2 billion in asset finance, down from USD 49.5 billion a year ago. The top three projects in the asset finance category were a 160-MW concentrated solar power plant in Morocco worth USD 1.2 billion; a 300-MW wind project in Morocco for USD 563 million; and a Brazilian 258-MW wind scheme for USD 497 million. The other two in the top five were wind farm projects in China and Australia. BNEF noted that the projects’ location was pointing to a shift from major to emerging markets.
Small-scale projects attracted USD 21.3 million in funds, 11% more than a year before. Investment in listed alternative energy companies was weak at USD 1.8 billion, but still up 47% quarter-on-quarter and 28% year-on-year. Venture capital and private equity funding stood at USD 1.3 billion, down 34% on the same period of 2011.
In geographical terms clean energy spending in the US fell 62% in annual terms to USD 7.3 billion; investments in China grew 6% to USD 14.8 billion; India attracted USD 1.5 billion or 60% less than a year earlier; and Brazil’s sector pocketed 24% more at USD 1.9 billion. In Europe green investment dropped by 29% to USD 18.2 billion.