China, Japan lead solar power investment

Solar power development in China made up 22 per cent of all new clean energy investments during Q3 in 2014, according to Bloomberg New Energy Finance (BNEF).

The recently released Global Trends in Clean Energy Investment report from BNEF suggests that strong Chinese and Japanese solar markets are supporting a boost in clean energy investments during the third quarter of 2014.

China and Japan became the two largest photovoltaic (PV) markets in the world in 2013, and investment levels have continued to grow.

Chinese solar investment increased to US$12.2 billion during the quarter, a 63 per cent increase on the same period in 2013 and represents 22 per cent of all clean energy investment during the quarter.

Investments were led by project finance deals in both countries including US$1.1 billion raised for a 231 MW solar PV project in Japan, as well as US$850 million for the second phase of the 530 MW Huanghe Hydropower hybrid hydro/PV plant in Western China.

Investments in the U.S. PV market are also growing with BNEF estimating that US$1.26 billion in financing was deployed for projects above 1 MW in the third quarter.

According to the BNEF research, US$15.9 million in project finance was deployed globally for projects larger than 1 MW during the third quarter, a 23 per cent increase over a year prior.

This is despite falling clean energy investments in many European nations including Germany and Italy, where policy changes have impacted solar markets.

BNEF does not provide quarterly figures for quarterly investment in PV projects smaller than 1 MW, but estimates that around US$55 billion was invested in small-scale distributed PV over the first three quarters of 2014.