H1/2019 Clean Energy Investment Down 14% YoY

BloombergNEF: Chinese Shift To Auction Mechanism For Wind & Solar Power Brought Down H1/2019 Global Investment In Clean Energy By 14% YoY
10:39 AM (Beijing Time) - 12. July 2019

Investment of around $4.2 billion as a mix of debt and equity for the MBR Solar Park IV in UAE was the silver lining for the global clean energy sector during H1/2019 as it is reflective of the appetite for solar electricity in the Middle East. But overall, the period saw global clean energy investment declining 14% YoY, according to BloombergNEF. (Source: BloombergNEF)

Key Takeaways

  • BloombergNEF estimates total global clean energy investment between January 2019 and June 2019 declined 14% YoY
  • Major reason for this drop was China’s policy changes and the Chinese market itself witnessing decline of 39%
  • Even other 2 big markets of US and Europe saw their clean energy investments going down by 6% and 4% during this period
  • Largest financing for the period, in fact for the entire global solar sector came for Mohammed bin Rashid Al Maktoum IV solar project with $2.6 billion debt with $1.6 equity

With renewable energy investment in the world’s largest wind and solar market China dropping 39% during H1/2019 compared to last year’s first half, global investments in that field reduced by 14% to $117.6 billion.

Bloomberg New Energy Finance (BloombergNEF) estimates asset finance for utility scale wind and solar farms declined 24% to $85.6 billion while financing for small-scale solar systems of less than 1 MW increased 32% to $23.7 billion during this period.

BloombergNEF’s analysis covers funding for new renewables capacity, excluding large hydro power projects, company level investment in renewables and energy smart technologies.

It claims the $28.8 billion investment in China is the lowest for any half-year period since 2013. BNEF Asia Pacific Head Justin Wu said, “The slowdown in investment in China is real, but the figures for first-half 2019 probably overstate its severity. We expect a nationwide solar auction happening now to lead to a rush of new PV project financings. We could also see several big deals in offshore wind in the second half.”

Apart from China, the US and Europe also showed a decline in attracting clean energy investment. While the US dropped by 6%, Europe went down by 4% YoY. India and Japan improved their prospects by 10% and 3% respectively, among other regions.

The biggest deal during this period was for a 950 MW multibillion solar PV+CSP project in Dubai. BloombergNEF considers financing for Mohammed bin Rashid Al Maktoum IV solar project as the biggest financing ever seen in the solar sector. 10 Chinese, Gulf and Western banks pooled in to provide $2.6 billion debt with ACWA Power, DEWA and Silk Road Fund of China investing equity of $1.6 billion for the . It prompted BNEF’s Head of Solar Analysis Jenny Chase to remark that the Dubai project is a strong signal of appetite for solar electricity for the Middle East and international financiers (see ACWA Power Closes Financing For 950 MW).

BloombergNEF presents the H1/19 RE investment numbers on its website.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani