Changes in Clean Energy Investment in 2014: End of Year Recap

by Melanie Paty

On January 9th, 2015, Bloomberg New Energy Finance submitted a press release on the strong performance of clean energy investments in 2014. The overall investment in clean energy reached $310 billion, a 16% increase from 2013, but 2011 still holds the record at $317 billion. However, it was the biggest increase of new investment in clean energy since 2011. Government funded research and development increased 14% and corporate increased 15%. Private equity and venture capital investments increased 16%, but overall investment is still three times below 2008 levels. In terms of region, the most investment came from the United States, China, and Europe. European investment increased only 1% since 2013, but is still the highest at $66 billion. China increased a whopping 32% to $89.5 billion. Clean energy investment in the United States experienced a smaller increase of only 8% reaching $51.8, $15.5 billion of which went to utility scale asset finance. U.S. investment in solar increased by 39% whereas investment in wind decreased by more than 50%. India and Brazil both reached $7.9 billion in clean energy investments, an 88% increase for the former and a 14% increase for the latter. French investment increased by 26% due to the installation of Europe’s largest solar PV plant with 300MW capacity. The majority of investment dollars went to asset finance of renewable energy including at least seven $1 billion offshore wind projects in Europe and large-scale solar projects in Japan, South Africa, Kenya, and Ontario. The second largest investment category was small-distributed capacity projects of less than 1MW, which primarily took the form of rooftop solar installations. Approximately 50% of the investments were in solar, marking its highest share to date. Investment in wind increased by 11% and investment in smart energy technologies like smart grid and storage were the third largest category. Finally, green bonds reached a record high of $38 billion, 2.5 times more than 2013 investment. It will be interesting to see how clean energy fares in 2015 as it is likely the effects of the recent drop in oil price have yet to be felt.

Bloomberg 1 (http://about.bnef.com/press-releases/rebound-clean-energy-investment-2014-beats-expectations/).

Bloomberg 2 (http://about.bnef.com/presentations/clean-energy-investment-q4-2014-fact-pack/).

Bloomberg, Clean Energy, Investment, Finance, Solar, Wind Energy, Green Bonds

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