Clean energy investment hits record US$260bn in 2011, up 5% YoY

Global investment in clean energy hit a record US$260bn in 2011, up 5% from the previous year as investment in solar grew by more than a third despite shrinking profit margins, some bankruptcies and flagging share prices, said a report by Bloomberg New Energy Finance (BNEF).
The United States last year regained its title as the top country for clean energy investment, beating out China for the first time since 2008. Clean energy investments in the United States rose by 33% to nearly US$56bn, while those in China edged up 1% to US$47.4bn.

Solar investment drove the new record as investment increased by 36% to US$136.6bn, as a 50% drop in prices for photovoltaic panels spurred installation.

“Remember that for every equipment company operating at thin or negative margins, there is an installer who is getting a good deal,” said Michael Liebreich, chief executive of BNEF said in a statement.

Last year was bleak for some, however. Many solar stocks retreated by more than 60% as the prices for solar panels that fell sharply, erasing profit margins for manufacturers.

A number of companies have already lost their fight for survival, such as Germany-based Solon SE and Solar Millennium, which both sank into insolvency in December. US companies Evergreen Solar, SpectraWatt and Solyndra had been earlier casualties.

Among investment types, utility-scale renewable energy projects led the way, increasing to US$145.6bn in 2011 from US$138.3bn the previous year. These include the 288MW offshore wind farm off Germany (US$1.3bn), a 272MW wind farm in Canada for US$756m and a solar thermal plant in China for US$354m.
Some of the big projects financed in the last quarter of the year were a 288 megawatt (MW) offshore wind farm off Germany for $1.3bn, a 272 MW wind farm in Canada for US$756m and solar thermal plant in China for US$354m.