Emissions goals

"Although spending by consumers and businesses on small-scale PV is expected to continue, very little investment in large-scale projects will be required from 2021-30 to meet the emissions goals of the proposed National Energy Guarantee," Mr Bhavnagri said.

"A deeper emissions reduction target, or more action by state governments, will be required to sustain investment around the historic average."

The previous annual record for investment in Australian clean energy was set in 2011, at $US6.2 billion.

Globally, clean energy investment edged up only 3 per cent, to $US333.5 billion last year, making 2017 the second-highest year and taking investment since 2010 to $US2.5 trillion. BNEF is predicting a similar global investment this year.

Solar also drove the international spending in 2017, attracting $US160.8 billion or almost half the total. Monster projects helped drive the increase, including two huge ventures in the United Arab Emirates, at 1.2GW and 800MW. Investment in wind dropped 12 per cent to $US107.2 billion, while investment in smart energy technologies rose 7 per cent.

BNEF noted that the asset finance of utility-scale renewables projects was the dominant form of investment, amounting to $US216.1 billion, fractionally up on 2016.


New record

But equity raisings by specialist clean energy companies fell 26 per cent to $US8.7 billion, despite a $US978 million convertible issue by Tesla.

Also heading south was investment by venture capital and private equity, which totalled just $US4.1 billion, down 38 per cent and the weakest since 2005.

Global new investment in clean energy by sector ($US billion). Bloomberg New Energy Finance

In China, investment jumped 24 per cent to a new record of $US132.6 billion across clean energy. The US saw the next heaviest investment, at $US56.9 billion, up 1 per cent, defying the less friendly tone towards renewables adopted by the Trump administration.

On the downside, investment slumped in Japan by 16 per cent to $US23.4 billion, while Germany slid 26 per cent to $US14.6 billion and the UK saw a huge 56 per cent plunge to $US10.3 billion after policy changes.

Maturing sector

BNEF also measured money changing hands in the sector and found that M & A activity rose 4 per cent to $US127.9 billion. The largest deal was the purchase of 51 per cent of TerraForm Power by Brookfield Asset Management for $US4.7 billion.


Abraham Louw, BNEF analyst of clean energy economics, noted that M & A in clean energy had topped $US100 billion for the last three years.

GE tops the list of M&A acquirers in the clean energy sector in 2017. Bloomberg New Energy Finance

"The fact that generating assets, in particular, are in growing demand from buyers is a sign of a maturing sector," he said.

Among BNEF's predictions for 2018 are an increase in global solar installations to at least 107GW thanks to continuing cost reductions, and a further increase in wind capacity additions. It expects further cost declines in lithium-ion batteries, but at a slower pace after an increase in metal prices.

It predicted global storage capacity additions more than 2GW, led by South Korea, and electric vehicle sales of almost 1.5 million, with more than half in China.