Investments Soar in Clean Energy

$18.1 billion was invested in the clean energy sector in 2006, a 67% increase from 2005. The rising trend line continues with $10.6 billion invested for the first half of 2007. There are close to 200 private equity funds focused on the sector. $8.6 billion was invested in companies and $9.5 billion was invested in projects last year, according to the report, Cleaning Up 2007, by New Energy Finance This rapid growth tells only half the story: during 2006, clean energy VCs invested only 73% of the total money available to them, with $2 billion residing in funds and waiting to be invested. This is a symptom of a market where demand for deals is higher than supply, which is driving up company valuations. All regions experienced significant growth in 2006. The Americas saw investment of $7.1bn – an increase of 83% on 2005 – as mainstream investors woke up to the opportunities in clean energy, especially in biofuels. There was a 62% increase to $9.2bn in funds invested in Europe, Middle East & Africa, mainly driven by PE investment in companies and projects. Companies and projects in the Asia & Oceania region received $1.8bn in investment, up 26%, driven […]

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