China attracted more asset financing in clean-energy technology in the second quarter than Europe and the U.S. combined, according to Bloomberg New Energy Finance. A clever piece of legislation created the renewable energy bonanza.
Six months ago, China made it the law that all utilities have to buy any renewable power put on the grid or they get fined. Since then private investment in renewable sources in the country has surged past US and EU levels. Investors are betting on China.
In the second quarter, outside financing of wind turbines, solar panels and low-carbon technology in China soared 72% to $11.5 billion.
China’s renewable sector accounted for one third of renewable investment for the period for the entire world, which totaled $33.9 billion, including all share sales, venture capital, private equity and asset finance.
Of this amount, private investment in clean energy in the US rose to $4.9 billion for the quarter while in Europe it fell to $4.5 billion for the same time period. (more…)