Investment in Solar Power Projects Likely to Fall in 2018

The mixed picture for global clean energy investment in 2018 is emerging, and at the same time, the commitment to wind and energy-smart technologies such as EV and batteries are running above last year’s levels.

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In the first half of 2018, the global net investment in solar power projects fell 19 percent from $71.6 billion as compared to previous year in 2017. The main reason is the cutbacks in China and lower equipment costs, trends that are expected to further strengthen in the second half of 2018.

According to the research by Bloomberg NEF, the mixed picture for global clean energy investment in 2018 is emerging, and at the same time, the commitment to wind and energy-smart technologies such as EV and batteries are running above last year’s levels.

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Data compiled by BNEF showed world investment in clean energy in the first six months of 2018 stood at $138.2 billion, down just 1 percent from the same period in 2017. The second quarter, from April to June, actually saw a rise year-on-year – of 8 percent to $76.7 billion.

“A sectoral split for the first half of 2018 shows solar investment down 19 percent compared to the same period last year at $71.6 billion, with wind up 33 percent at $57.2 billion. The slippage in solar reflects two main developments – significantly lower capital costs for photovoltaic projects, and therefore fewer dollars spent per megawatt installed; and a cooling-off in China’s solar boom. These trends are set to gather pace in the second half,” BNEF said in a statement.

On June 1, the Chinese government released a policy document restricting new solar installations that require a national subsidy, with immediate effect. “We expect this to lead to sharp drop in installations in China this year, compared to 2017’s spectacular record of 53GW,” said Justin Wu, head of Asia-Pacific at BNEF.

Source: ET