Cleantech of investment cycle: don't worry, think bigger

New Hampshire, USA-several reports this week, agree that Cleantech investments fell in 2013, but that's no bad thing. And the big question is what happens next: how much more is needed?

Three new reports of this past week-Bloomberg of new energy finance (BNEF) and Cleantech Group clean energy pipeline-all show that Cleantech investments for a second straight decline in 2013, the year down, although their numbers differ slightly. Bloomberg of new energy finance pegs 2013 the total investment in renewable energy and "smart" energy technologies to $254 billion, down 12 percent from 2012. The Cleantech Group said worldwide venture capital investments dropped 15 percent in 2013 to $6.8 billion. And clean energy pipeline pegs dropoff 20 percent in 2013 new Cleantech investments (up to $212 billion).

Comparing these reviews revealed some patterns and trends:

The largest Cleantech investment in two countries, China and the United States ruled both their Cleantech investment after BNEF--4 per cent for China $61 billion, the first reduction in a decade and 8 percent for the United States $48 billion-while Cleantech investments in Europe, largely subsidy "Fell 41 percent to $58 billion," attributed to constraints. Japan's appetite for Cleantech investment boomed, + 55 percent on $35 Milliarden.Projektfinanzierung total rose 22 percent to clean energy pipeline worldwide, mainly due to the large European offshore wind energy deals. Venture capital (VC) and private equity (PE) were $4.3 billion in 2013 to a third of their weakest since fall 2005. Asset, the financing, the largest area of investment, slipped 13 percent to $149 billion. And small-scale distributed energy investment (in the main roof solar) fell for the first time since 2006 (-25 percent to $60 billion) mainly due to falling prices, BNEF pointed out. M & A transactions were for VC/PE-backed Cleantech companies Cleantech industries at 83 transactions in 2013 (+ 15%), though only a small percentage of those published in the amount of $604 billion (down 37 percent). "Investors continue to capital intensive services and distributed generation, resource sharing, agriculture and the topic digital oilfield in the direction" was Cleantech Group CEO Nambi given to Haji.By invested about 188 offers technology, energy efficiency, the big winner, with $1.3 billion, a $23 per cent higher than 2012 takes the Cleantech Group. BNEF tracks solar investments fall 20 percent to almost $115 billion, wind investments that fall only slightly declining, $80 billion, biomass/waste from 42 per cent to $8 billion and biofuels energy fall 26 percent to $4.9 billion, less than a fifth the peaked in 2006-2007.

But Cleantech investments not extinct, despite some of us believe want to make. Investments increased quarterly nearly 15 percent after five quarters of declining were, says the Cleantech Group. Dollar investments, especially in Europe, not because of label interest but was due to reduced subsidies and the overall falling cost of solar systems, beating BNEF CEO Michael Liebreich. (The other side of the coin: money means cheaper solar energy more bang for the investment.)

After two years of decline, this is only a further proof and confirmation, to clean energy is a tire market. "We have already seen this movie," said Dallas Kachan, Managing Director at Kachan & co. and former Managing Director of the Cleantech Group. In various tech-boom phase, waves of innovation and times of the "Frothiness" had a plateau and correction time-including a dropoff in venture capital-activity-but then new sources of capital came in and drove an upswing the sector life cycle. This is "more recognition, which is this class of technology is here to stay", he said. Would make what is happening in cleantech, provide as the established energy lobbying to undermine prices for renewable energy, and not where sources of capital to come, he proposed.

And wider participation so urgently needed. Another report suggests this week from non-profit sustainability group Ceres, annual Cleantech investment to $500 billion annually until 2020 will be doubled, and increased to $1 trillion by the year 2030 to the objectives of limiting the global warming (up to 2 ° C) and avoid the worst effects of climate change, reducing the demand for electricity and increased use of renewable energy sources, improvement of energy efficiency. (BNEF and Ceres projections from a climate change/investment conference this week organized by Ceres came at the United Nations.) And BNEFs Liebreich suggested, perhaps too conservative - it is possibly more than $2 billion a year be.

Total clean energy investment 2010-2050, in United States $B for a 2 ° C global warming scenario. Credit: IEA, Ceres

Institutional investors managing nearly 76 trillion $ of the balance sheet total, but only a fraction of a percent is way toward cleaner energy infrastructure projects, highlights Ceres. The Group's recommendations: this commitment to increase five percent portfolio-wide for clean energy investment, access to the capital markets with bonds and asset backed securities (we already see, this and more probably comes in 2014); and to support policies for pricing carbon pollution during expansion urge of fossil fuel companies risk positions.

The locks only now starting to open access capital, by deep-pocketed companies use their balance sheets to work to buy their way into the world of Cleantech to the exploitation of multitudes of individual and institutional investors. "There is lot of money still on the sidelines, looking for a way to participate", called Kachan.

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