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London - Global investment in renewable energy fell 23% 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, according to Bloomberg New Energy Finance, a London-based researcher that tracks investment.
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.
BNEF also said there’s been a shift toward more utility-scale projects and away from smaller-scale installations, which was the reason for the revisions for 2015 data.
Last year’s surge in investment came as almost 200 countries agreed on a landmark deal in Paris to rein in fossil-fuel emissions blamed for global warming.
Europe and Brazil were the only regions to see an increase in investment in the first half of this year, with Europe’s 4% gain driven by a number of major offshore wind projects reaching financial close.
By contrast, China’s investments dropped 34% to $33.7bn, partly because 2015 wind and solar investments were higher than previously thought. Lower power demand and government policy changes also held back investment there, Liebreich said.
In the Middle East and Africa, investment dropped 46% to $4.2bn, and the US fell 5% to $23.1bn.
