Global clean energy investment has recorded a growth of $63.6bn in Q2’14, up by 33 percent compared to the Q1’ 14 and 9 percent compared to Q2 2013, according to the reports by Bloomberg New Energy Finance.
Q2 2014 witnessed favorable investment which is attributed to factors like big financings for wind and solar projects and increased activity in the installation of small-scale rooftop PV installation.
The prime deal of Q2’14 was the 600MW Gemini offshore wind farm in the North Sea with $3.8bn investment. Signed in May, the transaction involved Canada’s Northland Power in addition to equity investor groups along with various banking institutions.
The $818m financing of 121MW Ashalim I Sun Negev solar thermal project in Israel, and the $647m investment for the 252MW Cemex Ventika wind farm in Mexico were other significant deals in Q2’14.
The biggest contributions to the clean energy investment in Q2 ’14 was from China, with $19.3bn, more than double of Q1’ 14 and up 16 percent from Q2’ 13.
The U.S. invested $10.6bn, up 34 percent from Q1’ 14 and 2 percent above the data of Q2 2013; while Europe invested $14bn, up 26 percent from Q1 14 and 47 percent from a weak Q2 13.
Total asset finance for wind farms, solar parks and small hydro dams was $38.2bn in Q2 14, up from $22.8bn in Q114, but down from $38.5bn in Q2 13. Rooftop and other small-scale solar power financing was $21.2bn, up 41 percent on Q2 13.
Public market investment in the equity of clean energy companies was $3.8bn in Q2 14, up 6 percent on Q1 but 8 percent below Q2 13. A $600m convertible issue by the U.S. solar manufacturer and project developer SunEdison, and a $467m initial public offering by US wind asset owner NextEra Energy Partners were the main transactions in this quarter.
Venture capital and private equity investment in clean energy companies was a total of $1.6bn in Q2 14, up 42 percent from Q114 and 36 percent from Q2 13, and also the highest figure for any quarter since Q2 2012. A $250m expansion round for US firm Boston-Power and a $150m late-stage VC round for US solar company Sunrun were leading finance deals.
Overall, Japan faced a reduction in investment in Q2 14 to $7.7bn, from $7.9bn in Q1 14, but this was better on $7.2bn in Q2 13. UK saw investment slip to $2.1bn, from $3.2bn in Q1 14 and $2.2bn in Q2 13. Germany provided finance of $2bn, down from $2.3bn in Q1 14 but up from $1.3bn in Q2 13.
“The past two years have seen investment decline by over 20 percent from its 2011 peak, driven equally by the European fiscal crisis, policy uncertainty and plummeting costs for renewable energy equipment. Now, what we are seeing is the new competitiveness of renewable energy winning through, driving a surge in demand,” said, Michael Liebreich, chairman, advisory board, Bloomberg New Energy Finance.
The new investment variation is broad-based, with multiple activities in wind and solar, various projects, and covering most of the big markets. Even venture capital and private equity, down earlier have witnessed recovery. The full year figures for 2014 shows a rebound in global investment in clean energy. The debt-and-policy-fuelled years of 2007-2010 were followed by a period of consolidation and the industry is gathering momentum once again, concluded the sources.