Investment worldwide in the first quarter of 2013 was down 22% on a year earlier, due to a downturn in large wind and solar project financings, according to Bloomberg New Energy Finance (BNEF). The figure is still a stunning USD 40.6 billion.
Last year’s total investment was also down from a peak in 2011. Investment dropped by 11% to USD 269 billion for the year. The drop in the last eighteen months comes as a result of the ending of a number of significant support programs launched by governments in the aftermath of the financial crisis come. Also contributing to the fall is the plummeting cost of clean energy technology.
Activity has been high in terms of how many megawatts of capacity were installed, but not so much in dollar terms. BNEF warns that for a reduction in carbon emissions, an investment level would have to double to reach the goals set for 2020. It also said that the first quarter is typically lower and not necessarily an indication of how the activity will proceed the rest of the year.