Bloomberg New Energy Finance (BNEF) published its figures for the third quarter and global investment in clean energy is down 5% since the previous quarter and 20% lower than last year. The total is still a significant USD 56.6bn, which is equivalent to the total yearly amount invested in 2004. The declines are attributed to weaker figures from the US and India, and a lull in wind farm financings.
One important aspect to note in the declining numbers trend is that the recent sharp falls in the costs of wind and solar photovoltaic technologies have meant that the same megawatt capacity can now be purchased for significantly fewer dollars, which is actually good news but it naturally has a downward effect on the totals invested.
Based on the recent trend BNEF says that the full-year 2012 figure for investment in clean energy is likely to fall short of last year’s record $280 billion. If so, 2012 would be the first down-year for world investment in the sector for at least eight years.
Current challenges in the clean energy sector include policy uncertainty in the US, the UK and Italy, valuation declines on the public markets and restrained venture capital investment.
Venture capital and private equity investors invested USD 1.3bn into clean energy firms in Q3 this year, down 20% on the second quarter and 34% lower than the third quarter of 2011. Established markets such as the US, Europe and China are losing momentum while newer markets in South America, Asia and Africa pick up steam, said BNEF. (Image Source: BNEF)