Global Clean Energy Investment Nearly Doubles in Second Quarter
July 29, 2009
Global investments in clean energy rallied in the second quarter of 2009, reaching $24.3 billion, according to New Energy Finance. The second-quarter investments were 83% greater than global investments in the first quarter, which only totaled $13.3 billion, but they remain below the investment level in the second quarter of 2008, which was $36.2 billion. The independent research company attributes most of the gain to increased investment in renewable energy facilities, such as wind power plants and solar power facilities, as well as successful new stock offerings from major renewable energy companies, like Vestas, SunPower, and Suntech. Venture capital and private equity investment remains relatively low, at $1.4 billion. Unfortunately, clean energy investments remained weak in the United States, with financing of renewable energy projects at only $1.6 billion, which is down two-thirds from the second quarter of 2008. See the press release from New Energy Finance (PDF 20 KB). Download Adobe Reader.
The outlook is also improving for the performance of clean energy stocks. The WilderHill New Energy Global Innovation Index, or NEX, which tracks the performance of clean energy stocks worldwide, jumped up 36% between April 1 and June 30. That helped to recover some of the index's losses from 2008, when the NEX lost 61%, and the first quarter of 2009, when the NEX lost another 9%. Overall, at the end of June the NEX was down 53% from the high point it reached in November 2007, but up 67% from its lowest point, which it first hit in November 2008 and dropped to again in March 2009. New Energy Finance credits the recent increases to an uptick in oil prices and optimism over the "green stimulus" packages offered by countries throughout the world, including the United States. See the press release from New Energy Finance (PDF 28 KB).