Re­new­able en­ergy in­vest­ment falls

The Weekend Australian - Travel - - Resources -

GLOBAL in­vest­ment in re­new­able en­ergy tech­nol­ogy fell in the first quar­ter this year, as private eq­uity spend­ing dropped along with ini­tial pub­lic of­fer­ings, Lon­don-based con­sul­tant New En­ergy Fi­nance says.

The amount of private eq­uity flow­ing to wind farms, so­lar power com­pa­nies and other al­ter­na­tive en­ergy in­vest­ments fell 64 per cent to $878 mil­lion in the three months to March 31, from $2.5 bil­lion a year ear­lier, the re­search com­pany says.

Com­pa­nies raised $807 mil­lion on pub­lic stock mar­kets in the quar­ter, com­pared with $5.2 bil­lion a year ear­lier, it says.

The re­new­able en­ergy mar­ket was hurt as banks and other in­vestors gen­er­ally be­came more re­luc­tant to lend money be­cause of de­te­ri­o­rat­ing credit con­di­tions, ac­cord­ing to New En­ergy.

Still, the mar­ket was boosted as crude oil av­er­aged $97.79 a bar­rel in the quar­ter, 68 per cent more than a year ear­lier, ac­cord­ing to New York Mer­can­tile Ex­change prices.

Some com­pa­nies be­came tar­gets, with merg­ers and ac­qui­si­tions jump­ing to $7.7 bil­lion from $3.5 bil­lion, New En­ergy says. Wind farm in­vest­ment are at $6.6 bil­lion in the quar­ter, com­pared with $7.2 bil­lion a year ear­lier.

Ven­ture cap­i­tal­ists put $1 bil­lion into the re­new­able en­ergy in­dus­try in the first quar­ter, 57 per cent more than the $668 mil­lion a year ear­lier.

Clean en­ergy: Private eq­uity in­vest­ment has re­treated in the past quar­ter

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