At a time when global clean energy investment is at record highs, Australia's renewable energy sector is at an all time low.
New figures show that investment is plummeting with analysts blaming current government policies and uncertainty surrounding the Renewable Energy Target (RET).
That uncertainty may begin to subside with reports in the Australian Financial Review claiming that federal Cabinet has rejected the recommendations of the Warbuton review. This would pave the way for negotiations with Labor and cross-benches.
The review by businessman Dick Warburton recommends closing the large-scale renewable energy scheme to new entrants and grandfathering existing investments. This is in addition to abolishing immediately or fast-tracking the closure of the small scale solar rooftop scheme.
The renewable energy sector has warned the proposals would kill the sector and and cost billions in investment.
Global investment in the first three quarters of this year has jumped 16 per cent compared to the same time last year.
Bloomberg New Energy Finance (BNEF) said clean energy investment in the July to September quarter was $US55 billion, up 12 per cent from $US48.9 billion achieved in Q3 2013. However, this positive outlook is not being replicated in Australia where the investment outlook in 2014 has been dismal.
BNEF said $A193 milliion was invested in large scale renewable energy projects in Australia during the third quarter with total investment for the year to date at $A238 million.
The Q3 figure is down 78 per cent, down from the $A861 million invested in the same quarter last year. In 2013 Australia ranked 11th in the world on the investment scale. Today it has fallen behind Algeria.
Of the seven projects financed this year, none were backed by non-government lenders. “The severe downturn in investment and the total freeze in private investment has been caused by the Abbott government's RET review,” a BNEF spokesperson said.
Australia's biggest investors are facing massive writedowns including Pacific Hydro, Infigen Energy and Silex Systems.
BNEF analyst, Kobad Bhavnagri, said the Abbott government has some pretty strong “anti-renewables rhetoric” plus Australia is the first country in the world to repeal its carbon price, despite the fact it was working to cut carbon emissions.
In China, solar investment reached a new record of $12.2 billion, more than 22 per cent of global clean energy investment over the quarter. China is planning to add more than 14 gigawatts of solar capacity this year – almost a third of the global total, according to BNEF.
Japan, the world's second largest solar market, increased spending 17 per cent to $8.6 billion in the third quarter while US investment reached $7.3 billion, up from $5.7 billion.
A recent report from the International Energy Agency (IEA) found that solar power could generate more than a quarter of global electricity demand by 2050 if the right policies are maintained.