After a record-breaking year of clean energy investments, 2016 sees a slowdown of investment in China and other countries.
The figures for the second quarter of 2016 are in: From April to June, investments in clean energy ammounted to 61.5 billion (bn) US dollars. This is 12% higher than the first quarter of 2016 but 32% below the remarkable out-turn of 90 bn dollars in the same period of 2015.
Global investment during the first half of 2016 was 116.4 bn US dollars, which is about 23% lower than in the first six months of 2015, according to Bloomberg’s latest data (BNEF).
Europe and Brazil only regions where investment increases
Apparently, only in Europe and Brazil figures went up during the first half of the year by 4% at 33.5 bn US dollars (Europe) and 36% at 3.7 bn dollars (Brazil). However, investment in all other regions decreased: In China by 34% (33.7 bn), in India by 1% (3.8 bn), in Asia Pacific by 47% (12.1 bn), in the Middle East and Africa by 46% (4.2 bn) and in the United States by 5% (23.1 bn).
Michael Liebreich, chairman of the advisory board at Bloomberg New Energy Finance, does not see a chance for the numbers of 2016 to compete with the record figures of 2015. Reasons for the decrease in China might be the lower electricity demand and the policy changes in this country. There have also been changes in the Western solar market, where PV panels and construction have become much cheaper. A notable shift from small-scale to utility scale projects took place, which are cheaper in capex terms.
Upward revision of 2015 numbers
Investment figures of 2015 were even higher than expected. Revised numbers show that 348.5 bn dollars were invested, which is even 20bn more than originally estimated.
Details of the 2016 H1 show that again asset finance of renewable energy projects is the biggest category at 92bn dollars worldwide.