Clean energy financing in Asian countries
Financing of clean energy across the globe is continuing to slow down from its peak since 2011. Europe saw investments decline by 30% compared 2013 to H1 2012 due to subsidy cuts, policy uncertainty and financing challenges, whereas ASOC contributed 49% to global $54bn APAC investment, up from 30% $19bn during 2009 to 2011.
When compared to other clean energy technologies Solar and Wind dominate in investments. • In APAC solar and wind contribute more than 90% to investments or $43.3bn in H1 2013, up 3% from the same period in 2012. The trend of increasing investments in solar relative to the other technologies is very clear with 60% going to Solar.
If we see the Clean energy investment in total asset finance and small distributed capacity was higher in 2013 when compared to 2012. China financed $23.0bn of projects, Japan $15.4bn, India $2.8bn and Australia $2.6bn. India experienced a decline of 28% compared to the same period last year. This was largely due to policy uncertainty around the generation-based incentive. As per Bloomberg report in solar China is the leading investor following by Japan and India in Asian countries.
Asia Pacific investments in Solar Energy, 2010 – 2013(Q2)
Source: Bloomberg report, “ASIA-PACIFIC, MID-YEAR RENEWABLES UPDATE, Financing and key trends 31 July 2013”.