RaboBank delivered its Renewables Q4 Quarterly report this week and confirmed that investment in the sector is down on 2011 levels.
The report notes however the decision by Japan to phase out nuclear power and the growth in the storage technology sector as positive for the industry.
The report states that, “although roughly $3.3bn was invested in new renewable energy capacity between July and September 2012 – slightly more than in the previous quarter – 2012 is unlikely to reach the $25bn in investments seen last year, with tempered investment appetite in the EU is one of the main reasons for this.”
While Europe was on the same level as North America last year—about $8.5bn was invested in each region in 2011—Europe’s investments to date in 2012 add up to just $1.2bn.
Asset deals in the US and Canada amount to $6bn so far this year, and with a few months left, might come close to reaching 2011 levels. Asian investments are likely to go beyond 2011 levels as $3.3bn has already been spent this year, close to the $3.5bn of last year.
The North American drought and a record low for Arctic sea ice cover this summer suggest that the effects of climate change are becoming more apparent and require a more concerted response, however across the US and Europe renewable energy finds itself under a negative political spotlight as public concern over whether renewable energy surcharges are well spent is addressed.
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