Investment in Clean Energy Hits a 4-Year Low
BY Laura Entis
From China to Spain to the United States, investment fell sharply as countries cut back.
Investment in clean energy is down this year, according to a report by Bloomberg New Energy Finance. This quarter, clean energy investment fell 22 percent to $40.6 billion, down from $52 billion in the same quarter last year.
The cause? Michael Liebreich, chief executive officer of Bloomberg New Energy Finance, said “the last 18 months have seen a number of significant support programs launched in the aftermath of the financial crisis come to an end.”
Additionally, there is continuing policy uncertainty in many countries, including the United States, where the extension of the main subsidy for wind technology has been stalled.
One potential (and less gloomy) factor influencing the drop: the dramatic reduction in price for renewable energy technologies. Solar power manufacturers that once dominated the market are now operating in a more competitive space, and must contend with the resulting price fall-off.
In terms of energy efficiency and renewable energy, the investment halt was global: it dropped 54 percent in the U.S., 15 percent in China, 25 percent in Europe, and an astonishing 96 percent in Spain.