Clean energy investments in Q3 falls 20% year-on-year

Bloomberg New Energy Finance (BNEF) reported that global investment in alternative energy fell by 5% in the third quarter of 2012 on quarter-on-quarter basis, and 20% year-on-year (y/y) to US$56.6 billion, of which US$33.8 billion came from the solar sector.
 
Figures released by the research firm showed that 2012 would close below the US$280 billion raised by the clean energy industry in 2011, which was a record year. This could be the first time green investment reached this low in at least eight years. Policy uncertainty in major markets, plus low sector share prices that impact on public market and venture capital investment, are some of the major reasons for the decline. In addition to this, the sharp decrease in wind and solar equipment costs has lead to lower investment requirements.
 
Solar power projects and companies booked US$33.8 billion, lower by 22% than a year ago. Wind power investment amounted to US$15.5 billion, 22% lower y/y.
 
During the period July to September, wind, solar and biofuel projects attracted US$32.2 billion in asset finance, a significant drop from the US$49.5 billion of last year. The top three projects according to asset financing were: the Morocco 160-MW concentrated solar power plant worth US$1.2 billion; the Morocco 300-MW wind project at US$563 million; and the 258-MW wind scheme in Brazil for US$497 million. Two others of the top five were wind farm projects in Australia and China. The location of these projects shows that a shift to emerging markets is taking place, BNEF noted.
 
Investment in small-scale projects amounted to US$21.3 million, 11% higher than a year before. While investment in listed alternative energy companies was weak at US$1.8 billion, it was higher by 47% quarter-on-quarter and 28% y/y. Venture capital and private equity funding amounted to US$1.3 billion, down by 34% on the same period a year ago.
 
A study of clean energy annual spending in geographical terms shows that the U.S. fell by 62% to US$7.3 billion; India attracted investments of US$1.5 billion, 60% less than a year earlier; and green investment in Europe dropped by 29% to US$18.2 billion. The countries that received the most investments were China, up by 6% to US$14.8 billion; and Brazil, up 24% at US$1.9 billion. (October 9, 2012)