Clean energy investment in the UK dropped by 70 per cent in 2010 and the country’s position in the global league table fell from fifth in 2009 to 13th, according to new research released today (29 March) by the Pew Charitable Trusts.
The UK’s dramatic drop in private investment was in stark contrast to the rest of Europe, and to global trends. Overall, Europe remained the leader, attracting $94.4 billion, with Germany landing $41.2 billion and Italy, ranked fourth overall, $13.9 billion.
And there was an important tipping point, as Italy became the first country to achieve grid parity, or cost-competitiveness, for solar energy.
Worldwide, investment in clean energy grew by a robust 30 per cent to a record $243 billion in 2010. China remains the global leader, attracting $54.4 billion in equity in 2010, a 39 percent increase. Germany ranked second, up from third, doubling financing to $41.2 billion. For the first time, India moved into the top 10, with $4 billion in investment, a 25 per cent increase. While the US saw a 51 per cent increase in investments to $34 billion, it slipped to third place and continues to lag on a number of metrics.
Phyllis Cuttino, director of Pew’s Clean Energy Programme said that with a new government in the UK investors appear to have taken to the sidelines until there is more certainty in the marketplace, “Our research consistently demonstrates that strong policy attracts investments. Nations like China, Germany and India, which all saw an increase, were attractive to financers because they have national policies that create long-term certainty for investors.”
In terms of global trends, the solar sector experienced the strongest growth among the various technologies, led by small-scale residential projects. Declining prices and generous government support in key countries helped the solar sector achieve 40 per cent of total clean energy investment in 2010. But in the UK, activity stalled somewhat in 2010, due in no small part to policy uncertainty during a substantial part of the year.
Investments in small-scale, residential solar grew by 100 per cent to $56.4 billion Germany accounts for nearly half the total, followed by Japan, France, Italy and the US.
Installed generating capacity increased to 388 gigawatts from wind, small-hydro, biomass, solar, geothermal and marine, with China accounting for more than 25 percent of the global total.
Worldwide as a whole, clean energy investment and finance has grown 630 percent since 2004
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