Global investment in renewable energy was USD 53.1 billion in the second quarter of 2013, up 22% from the first quarter thanks to an upturn in the financing of wind energy and solar power projects and a 170% surge in equity funding for specialist companies on public markets, Bloomberg New Energy Finance (BNEF, New York, New York, US) announced.
The Q2 rebound was led by the US, which saw investment jump 155% compared to a weak first quarter, to reach USD 9.5 billion, and also China (up 63% at USD 13.8 billion) and South Africa (up from almost nothing in Q1 to USD 2.8 billion in Q2).
However Europe, for many years the mainstay of clean energy activity worldwide, saw investment fall 44% compared to Q1, reaching just USD 9.5 billion – that continent’s lowest quarter total for more than six years. The downturn in Europe helped ensure that global investment in clean energy in Q2 2013 ended up 16% below the figure for the second quarter of last year.
“These figures are a mixture of sweet and sour. On the sour side, 2013 globally is still running below 2012, which was itself down on the 2011 investment record,” Michael Liebreich, chief executive of Bloomberg New Energy Finance, commented.
“And European investment is clearly being hit by cuts in support for renewable energy and by policy uncertainty, notably ahead of the German election in September.”
“On the sweet side, the US is back in business following the hiatus that resulted from fears about the possible expiry of the Production Tax Credit for wind at the end of 2012. And the 50% rally in clean energy share prices since their lows last summer, with rises of 200% or more for Tesla Motors and a clutch of major wind and solar manufacturers, is rekindling – at least for the moment – the appetite of stock market investors for equity raisings.”
Wind farms and solar parks leading investments between April and June 2013
The figures, drawn from Bloomberg New Energy Finance’s authoritative database of deals and projects worldwide in renewable energy and energy smart technologies, show that global investment of USD 53.1billion in Q2 was up from USD 43.6 billion in Q1 but down from USD 63.1billion in Q2 2012.
The biggest category of investment between April and June 2013 was asset finance of utility-scale projects such as wind farms and solar parks. This was USD 31.9 billion, up 39% on the first quarter but down 21% year-on-year. Among the projects financed were MidAmerican Renewables’ 681 MW Solar Star photovoltaic project in California, at USD 2.5 billion, and EDF’s Blackspring Ridge wind farm phase one, at 299 MW and USD 588 million, in Alberta, Canada.
Busy activity in small-scale PV projects
Investment in small-scale PV projects of less than 1 MW continued to be another busy area of activity, accounting for USD 17 billion of outlays in the second quarter, in line with Q1, but down 15% year-on-year, largely because of reductions in the cost of PV panels.
China was the largest clean energy investor worldwide, Germany leading among European countries
Breaking the data down by country, China was the largest investor in clean energy in Q2 at USD 13.8 billion, followed by the US at USD 9.5 billion, Japan, down 5% at USD 7.6 billion, South Africa at USD 2.8 billion, and Australia, up nearly sixfold at USD 2.3 billion.
Among European countries, Germany led the way with USD 1.9 billion, but this was down from USD 6.3 billion in Q1. The UK was second with USD 1.7 billion, down from USD 2.8 billion, with France at USD 1.2 billion, up from USD 919 million, and Italy, also at USD 1.2 billion, down from USD 1.3 billion.