Global investments in renewable energy rose sharply in the second quarter of 2016, rising by 30 per cent over the first quarter. But Brexit could have a negative impact on renewable investments across Europe and the world.
Global investments in renewable energy surged in the second quarter of 2016 to reach USD 75.3 billion. This figure represents a 30 per cent increase over the first quarter.
The strong increase in the second quarter is largely due to major offshore wind and solar projects reaching financial close, explained Thomas Sturge of Clean Energy Pipeline, which published these latest figures.
But the figures show a troubling trend for 2016. While investments in the second quarter are impressive compared with the first quarter, they are still considerably lower than the USD 90 billion recorded in the same period last year. According to Sturge, “a particularly weak first quarter means 2016 will likely be the first down year for investment since 2013”.
The recent Brexit vote is expected to have a negative impact on renewable investments, added Sturge. While the UK only accounts for 11 per cent of global renewable energy investment, last month’s vote in favour of leaving the European Union “will likely have far reaching consequences across Europe and the world”.
The Brexit vote also raises a number of questions, including whether European investors will still target UK renewable assets or how it will impact European electricity interconnectors.