According to the latest figures from BloombergNEF (BNEF), the first half of 2019 saw a 39% slowdown in investment in clean energy in the world's largest market, China, to US $ 28.8 billion, the lowest figure for any half-year period since 2013.
The drop in activity in China, as the country moves away this year from government-set tariffs for auctions of new wind and solar capacity, also depressed the global investment figure for the first half of 2019, to US $ 117.6 billion, 14 percent less than the first half of 2018.
Justin Wu, head of Asia-Pacific for BNEF, commented: "The slowdown in investment in China is real, but the figures for the first half of 2019 probably exaggerate its severity."
And he added: “We hope that a nationwide solar auction will be held now to generate an avalanche of new financing for photovoltaic projects. We also got to see several great deals on offshore wind in the second half. "
The other highlight of global clean energy investment in H1 2019 was the financing of multi-million dollar projects in two relatively new markets, a solar thermal and photovoltaic complex in Dubai, at 950MW and US $ 4.2 billion, and two sets Offshore offshore wind from Taiwan, with 640MW and 900MW and an estimated combined cost of US $ 5.7 billion.
The Dubai agreement in late March for the Mohammed bin Rashid Al Maktoum IV project is the largest financing ever seen in the solar sector.
It involves $ 2.6 billion debt from 10 Chinese, Gulf and Western banks, plus $ 1.6 billion equity from Dubai Electricity and Water Authority, Saudi Arabia-based developer ACWA Power and equity partner, Silk Road Fund. from China.
Jenny Chase, director of solar analysis at BNEF, said: “Al Maktoum IV is unusual in combining three different types of solar energy, parabolic trough and tower thermal technologies, with conventional PV, but it is also a sign strong appetite for solar electricity by Middle Eastern countries and international financiers. "
The two Taiwanese offshore wind projects, Wpd Yunlin Yunneng and Ørsted Greater Changhua, involve European developers, investors and banks, as well as local players. Offshore wind activity is expanding its geographic focus, from the North Sea of Europe and the coast of China, to new markets such as Taiwan, the east coast of the United States, India and Vietnam.
BNEF's figures for clean energy investment in the first half of 2019 show mixed fortunes for the world's major markets.
The "big three" China, the United States and Europe showed declines, but with the United States down a modest six percent to $ 23.6 billion and Europe down four percent to $ 22.2 billion compared to 1H 2018, a lot. less than China's 39 percent.
Japan attracted US $ 8.7 billion of investment, a three percent increase in 1H 2018, and India, US $ 5.9 billion, a 10 percent increase, as it continued its momentum towards its ambitious target of 175 GW of energy. renewable by 2022.
Brazil experienced an investment of US $ 1.4 billion, an increase of 19%. In Europe, Spain was the star actor with $ 3.7 billion, 235 percent more than in the same period last year, while the Netherlands was 41 percent lower with $ 2.2 billion, Germany 42 percent. percent to $ 2.1 billion, the United States, the United Kingdom, is up 35 percent to $ 2.5 billion, and France is down 75 percent, to $ 567 million.
Sweden saw an investment jump from 212% to US $ 2.5 billion, and Ukraine from 60% to US $ 1.7 billion.
By reducing global investment in clean energy by transaction type, asset financing for utility-scale generation projects such as wind farms and solar parks decreased 24 percent to $ 85.6 billion, largely due to to the China factor.
Financing for small-scale solar systems of less than 1.0MW increased 32 percent to US $ 23.7 billion in the first half of this year.
Investment in specialized clean energy companies through public markets was 37% higher at $ 5.6 billion, helped by two large capital raises for electric vehicle manufacturers, a $ 863 million secondary issue for Tesla and a convertible issue of US $ 650 million for China.
Venture capital and private equity financing of clean energy companies in the first half of 2019 declined two percent to $ 4.7 billion.
However, there were three exceptionally large deals: $ 1 billion each for Swedish battery company Northvolt and American electric vehicle battery charging specialist Lucid Motors, and $ 700 million for another US electric vehicle player. Rivian Automotive.