Offshore wind financings in the first half of 2020 totaled $35bn, up 319% year-on-year and higher than 2019’s record full-year figure of almost $32bn, according to research company BloombergNEF (BNEF).
Overall investment in new renewable energy capacity excluding large hydro-electric dams of more than 50MW was $132.4bn in the first half of 2020, up 5% from $125.8bn in the same period of 2019.
Onshore wind investment slipped 21% to $37.5bn, while solar fell 12% to $54.7bn.
The first half of this year saw investment decisions made on 28 sea-based wind farms, including the largest ever, the 1.5GW Vattenfall Hollandse Zuid array off the coast of the Netherlands, costing an estimated $3.9bn, said BNEF.
Other major offshore deals included SSE’s 1.1GW Seagreen project off the UK at an estimated $3.8bn, Copenhagen Infrastructure Partners’ 600MW Changfang Xidao array off Taiwan at an estimated $3.6bn and the Fecamp and Saint-Brieuc projects in French waters, together totaling 993MW and $5.4bn.
There were no fewer than 17 Chinese installations financed, led by the Guangdong Yudean Yangjiang Yangxi Shapaat 600MW and $1.8bn, BNEF said.
BNEF head of analysis Albert Cheung said: “We expected to see Covid-19 affecting renewable energy investment in the first half, via delays in the financing process and to some auction programs.
“There are signs of that in both solar and onshore wind, but the overall global figure has proved amazingly resilient – thanks to offshore wind.”
BNEF head of wind analysis Tom Harries said: “Offshore wind is benefitting from the 67% reduction in levelized costs achieved since 2012, and to the performance of the latest, giant turbines.
“But the first half of this year also owed a lot to a rush in China to finance and build, in order to take advantage of a feed-in tariff before it expires at the end of 2021.
“I expect a slowdown in offshore wind investment globally in the second half, with potentially a new spike early next year.”
Investment in new biomass and waste-to-energy plants fell 34% to $3.7bn, while that in geothermal jumped 594% to $676m.
Small hydro projects of less than 50MW attracted an estimated $576m, down 14%, and biofuel production plants $250m, down 82%.
China was the largest market yet again, investing $41.6bn in the first six months of 2020, up 42% compared with the same period in 2019 thanks to its offshore wind boom.
Europe secured $36.5bn, up 50%, while the US slipped 30% to $17.8bn.
Japan saw financings rise 14% to an estimated $10.8bn, but India fell 49% to $2.7bn and Brazil was down 26% at $2.5bn.
The Netherlands were up 231% at $6.9bn, France up 306% at $6.2bn, the UK 265% higher at $5.7bn, Spain down 11% at $3.7bn, and Germany up 20% at $3.6bn.
BNEF chief editor Angus McCrone said that a clearer picture of the impact of Covid-19 on green energy investment will come with the full-year 2020 figures.
He said: “Renewables have been helped by vastly improved competitiveness and by investor appetite for assets offering secure cash flows.
“However, project developers face the challenge that key people, whether at the permitting, financing or construction stages, can’t meet face-to-face.
“And buyers of small-scale solar systems are sensitive to changes in consumer confidence.”