Investment in renewable energy fell 20 percent from a year ago in the third quarter as wind farm financing dropped and the pace of spending eased in the US and India. [File Photo]
Investment in renewable energy fell 20 percent from a year ago in the third quarter as wind farm financing dropped and the pace of spending eased in the US and India, Bloomberg New Energy Finance said.
The US$56.6 billion injected into clean energy projects in the third quarter fell 5 percent from the second quarter and indicates that investment may fall for the first time in eight years when figures for the whole of 2012 are tallied, the London-based researcher said in a statement yesterday.
The industry is suffering from excess capacity that's driven down prices for solar panels and wind turbines, meaning developers pay less to install each megawatt of capacity. Governments are paring support for the industry across the US, India and Europe after a record US$280 billion was invested in clean and low-carbon technologies in 2011.
"The location of some of the biggest projects financed in quarter three this year highlight the geographical shift that is taking place in clean energy, with established markets such as the US, Europe and China losing momentum while newer markets in South America, Asia and Africa pick up steam," said Michael Liebreich, CEO of New Energy Finance.
Spending in the US was US$7.3 billion, down 28 percent from the previous quarter and 62 percent on the same period last year. Investment in India also slid 16 percent from the second quarter and 60 percent from a year ago. Brazil showed a 94 percent increase to US$1.9 billion from the three months ended in June and a 24 percent boost from the same quarter a year ago.
Investment in solar power reached US$33.8 billion, more than double the US$15.5 billion invested in wind in the third quarter.
Developers in Morocco were granted the go-ahead for a 160-megawatt solar thermal plant costing US$1.2 billion and a 300-megawatt wind farm for US$563 billion.