China dragging global clean energy investment upwards

A report from Bloomberg New Energy Finance shows that China is driving global growth in the clean energy sector in the second quarter of 2012. While the report says that global investment in the sector grew 24 percent, it was China's unprecedented 92 per cent surge over the first quarter 2012 that made figures look so healthy.

According to Bloomberg a total of USD59.6 billion was invested into clean energy in the second quarter of this year, up from the previous three months but 18 per cent down year-on-year.

“China has recently quadrupled its domestic goals for solar installations. And it has been by far the biggest market for wind turbines for several years. These figures underline the pivotal role China is playing in the clean energy sector,” said Michael Liebreich, Bloomberg New Energy Finance chief executive in a statement.

The largest Chinese solar project financed was the Shanlu & Shengyu Bayannur Wuyuan PV plant, at USD316 million.

Perhaps surprisingly both the US and Europe's performance was positive in the light of dire economic conditions, standing at 18 percent and 11 percent up quarter-on-quarter respectively. Bloomberg also highlighted that during the same period the WilderHill New Energy Global Innovation Index was 75 percent below its record high last November. It tracks 96 clean energy stocks worldwide.

The report showed that investment from private equity and venture capital were significantly down, 39 percent and 28 percent respectively and for the quarter year-on-year public sector investment was down a staggering 75 percent.

In light of these figures it comes as no surprise that Bloomberg concluded that investment in clean energy technology and equipment providers remains down, but that there was huge increase in asset financing of renewable power projects, up 50 per cent.

It is worth highlighting that it is the first time Bloomberg New Energy Finance has included figures for small-scale projects, such as rooftop solar PV installations, although the company says adjustments were made to give a fair reflection against first quarter figures for like-on-like comparisons