Renewable energy investment has fallen by a quarter in the first half of this year, and analysts believe the record-breaking spend in 2015 is unlikely to be equalled.
Bloomberg New Energy Finance reports that global investment in renewable energy fell 23 per cent in the first half of this year as the cost of installing solar panels declined and China paused the pace of its spending.
Wind, solar and other clean energy industries attracted $116.4bn in the first two quarters of the year including $61.5bn in the second quarter. It also revised up 2015’s total by almost $20bn to a record $348.5bn.
“It is now looking almost certain that the global investment total for this year will fail to match 2015’s runaway record,” said Michael Liebreich, founder of Bloomberg New Energy Finance.
Cheaper photovoltaic panels and lower financing costs have reduced capital spending needs of developers even as installations of the technology have hit a record.
Europe and Brazil recorded increases in spending however China’s investments dropped 34 percent to $33.7bn, partly because 2015 wind and solar investments were higher than previously thought. Lower power demand and government policy changes were also instrumental according to BNEF.
In the Middle East and Africa, investment dropped 46 percent to $4.2bn, and the U.S. fell 5 percent to $23.1bn.
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