Two multi-billion dollar offshore wind projects have turned Europe into the strongest performing region in terms of clean energy investments in the first quarter of 2016, according to the data compiled by Bloomberg New Energy Finance (BNEF).
The two projects, the 1.2GW Hornsea Project One and the 714MW East Anglia One , which both received final investment decisions this quarter, helped Europe reach USD 17 billion in green investments, up 22% quarter-on-year and no less than 70% year-on-year.
Dong Energy’s Hornsea One carries a price tag of approximately USD 5bn, and is the world’s largest ever project financing in renewable energy outside the hydro-electric sector.
ScottishPower’s East Anglia One array project has an estimated value of USD 3.5bn.
Global clean energy investment in the first quarter of 2016 was USD 53.1bn, down 22% on Q4 2015’s USD 68.1bn and 12% below the USD 60.5bn recorded in the equivalent quarter a year ago.
The slide in global investments is mainly attributed to a change in the pace of activity in China.
Clean energy investment in that country in the first quarter was USD 11.8bn, down 50% from Q4, and 37% lower than in Q1 2015, as wind and solar developers paused after a rush last year to qualify for soon-to-expire electricity tariffs, BNEF said.
“Based on Q1 figures, 2016 is going to be hard-pressed to beat last year’s record investment total,” Michael Liebreich, chairman of the advisory board at Bloomberg New Energy Finance, said.
“The fundamentals behind global clean energy investment remain strong, with our latest research showing solar PV and wind again reducing their costs and competing strongly despite lower coal, oil and gas prices. But China accounted for more than one third of all new financings last year, so what happens there in 2016 will be crucial to the world outturn.”