Investment in renewable energy fell 7% to $298bn last year, according to a new report from French consultancy Capgemini.
The 2018 ‘World Energy Markets Observatory’ report said investment in onshore wind and hydro power fell, although offshore wind and solar experienced an increase.
Capgemini said the falls were likely down to a lack of suitable sites and, in the case of onshore wind, local opposition.
Despite the drop in investment, installed capacity in the clean power sector continued to grow representing 61% of all net generation added last year, the report said.
A total of 2179GW of renewable energy was installed at the end of 2017, Capgemini said. Hydro represented the majority of the capacity with 1152GW, followed by wind with 514GW and solar 397GW.
Bioenergy provided 109GW, geothermal 13GW and wave and tidal about 500MW.
The report also highlighted growth in the energy storage sector. It noted that electric vehicle development is triggering a rapid progression in battery technology.
Battery costs are expected to fall to $100 per kilowatt-hour by between 2025-2035 from about $200/kWh last year, Capgemini said.