Australian large-scale solar investment down during global boom
With uncertainty about the future of the renewable energy target, Australia’s momentum as a player in the renewable energy investment game is stalling. Only months after Treasurer Joe Hockey called wind turbines “utterly offensive” and joked about putting a handbrake on renewable energy research funding, figures from Bloomberg New Energy Finance show we are missing out on a huge slice of the investment pie.
Bloomberg’s report indicates that $US63.6bn was invested in clean energy projects globally during the second quarter of 2014. This represents an increase of 33% over the first quarter this year, and a 9% increase on figures from the same time last year. Most of the funds are being used to support wind or solar projects.
Australia snatched only $40 million from the investment pool, our lowest level since 2001.
ABC spoke to Kobad Bhavnagri from Bloomberg’s Australian office, who said, “A couple of the main drivers for the good results this quarter were increased investment in China, in the US (United States) and also in Europe, which has been performing quite poorly in the last few years but is now starting to return to healthier figures.”
Australia’s political stance against renewable energy growth means investors are looking past projects based on home shores and taking their funds to countries offering security and stability.
“This report tells us that many many countries right around the world are pushing very hard to move away from coal and from gas for their electricity generation and move towards renewable energy,” says Kane Thornton, acting chief executive from the Clean Energy Council, “because that’s what’s the most cost effective increasingly in those countries and that helps them to reduce their emissions and transition their energy sector.”
Renewable investment is growing rapidly in China, with several pilot carbon market schemes in place and 182 companies producing permits covering their 2013 carbon emissions. Cement, iron and steel industries were hit the hardest, not only required to conform with emissions compliance measures but face a slowing economy.
So if China, in the face of an economic downturn and growing international pressure on emissions, see the potential of renewable investment – why can’t Australia?
