Global renewable energy investment declined by 14 percent in H1 2019 yoy, BNEF
Post date: 10/07/2019 - 20:44
The first half of 2019 saw a 39 percent slowdown in renewable energy investment in the world’s biggest market, China, to $28.8 billion, the lowest figure for any half-year period since 2013, according to the latest figures from Bloomberg New Energy Finance (BNEF). The plunge in activity in China, as the country shifts this year away from government-set tariffs to auctions for new wind and solar capacity, also depressed the 1H 2019 global investment figure to $117.6 billion, down 14 percent compared to the first half of 2018. »We expect a nationwide solar auction happening now to lead to a rush of new PV project financings,« said Justin Wu, head of Asia-Pacific for BNEF.
Furthermore, the consultancy is highlighting the financing of multibillion-dollar projects in two relatively new markets – the solar thermal and photovoltaic complex in Dubai, at 950 MW and $4.2 billion, and two offshore wind arrays in the sea off Taiwan (640 MW and 900 MW; estimated combined cost of $5.7 billion). The Dubai deal in late March, for the »Mohammed bin Rashid Al Maktoum IV« project, is the biggest financing ever seen in the solar sector. It involves $2.6 billion of debt from 10 Chinese, Gulf and Western banks, plus $1.6 billion of equity from Dubai Electricity and Water Authority, Saudi-based developer ACWA Power and equity partner Silk Road Fund of China. The solar park is combining the thermal technologies of parabolic trough and tower with conventional PV.
BNEF’s figures for clean energy investment in the first half of 2019 show mixed fortunes for the world’s major markets. China, the U.S. and Europe all showed falls, but with the U.S. down a modest 6 percent at $23.6 billion and Europe down 4 percent at $22.2 billion compared to 1H 2018, far less than China’s 39 percent setback.
Japan attracted $8.7 billion of investment, up 3 percent on 1H 2018, and India $5.9 billion, up 10 percent, as it continued its drive toward its ambitious target for 175 GW of renewable energy by 2022. Brazil saw investment of $1.4 billion, up 19 percent, says the report.
In Europe, Spain was the star performer at $3.7 billion, up 235 percent on the same period a year earlier, while the Netherlands was 41 percent lower at $2.2 billion, Germany down 42 percent at $2.1 billion, the U.K. up 35 percent at $2.5 billion and France down 75 percent at $567 million. Sweden saw investment jump 212 percent to $2.5 billion, and the Ukraine 60 percent to $1.7 billion.
Asset finance of utility-scale generation projects such as wind farms and solar parks was down 24 percent at $85.6 billion, due in large part to the China factor. Financing of small-scale solar systems of less than 1 MW was up 32 percent at $23.7 billion in the first half of this year.