According to Bloomberg New Energy Finance (BNEF), clean energy investment rose for the first time in three years in 2014. New funds for wind, solar, biofuels and other low-carbon energy technologies gained 16 percent to $310 billion last year. It was the first growth since 2011, erasing the impact of lower solar-panel prices and falling subsides in the U.S. and Europe that hurt the industry in previous years.
The study reported that clean energy benefited from a number of trends that will be difficult to replicate in 2015. For example, with China’s commitment to renewables, funding increased 32 percent. In addition, a record $19.4 billion was committed to offshore wind projects during the year.
The industry benefited from a number of trends that will be challenging to replicate this year. Funding surged because of a 32 percent expansion in China’s commitment to renewables, as well as a record $19.4 billion committed to offshore wind projects that were years in the making. And prior to the major drop in gas prices, investments were on the rise for electric vehicle development.
“Healthy investment in clean energy may surprise some commentators, who have been predicting trouble for renewables as a result of the oil price collapse,” said Michael Liebreich, chairman of the advisory board of the London-based researcher. “Our answer is that 2014 was too early to see any noticeable effect on investment. The impact of cheaper crude will be felt much more in road transport than in electricity generation.”
However, the BNEF, there may be trouble on the horizon for electric cars and offshore wind but even with lower oil prices, they predict installations for solar and wind power to grow about 10 percent in 2015. BNEF says the findings ease concerns that the oil price rout that began in the middle of last year would lead to a sharp reduction in funds for low-carbon energy, which is more costly than fossil fuels.
“This increase in renewable energy investment demonstrates the resilience of the sector in the face of tumbling oil prices,” said Ben Warren, head of environmental finance at the consulting firm EY. “This trend is set to continue as technology around renewables becomes more affordable. The increasing role that renewable energy plays in emerging markets will also help ensure sustainable growth for the sector.”