Clean energy investment continues to languish in Australia as the industry awaits the government’s response to the Renewable Energy Target review. The country is on track to register its lowest level of asset financing since 2002, as policy uncertainty prevents any private investment in new large-scale assets.
- Only AUD 193m was invested in new large-scale renewable energy projects in the third quarter of 2014 in Australia, bringing year-to-date investment to AUD 238m. A total of 7 projects have been financed since 1 January 2014 – all the subject of government funding through the Australian Renewable Energy Agency, Clean Energy Finance Corporation or state governments. None were backed by non-government lenders or investors.
- Large-scale asset finance in Q3 2014 is down 78% on the AUD 861m invested in the same quarter last year. Trailing 12 month large-scale asset finance is down 70% compared to the same period last year (Q4 2012 – Q3 2013), and assuming financing remains at similar levels in Q4, Australia is on track to record its lowest annual result since 2002 (Figure 1).