By Vandana Gombar, Senior Editor, BloombergNEF
- Signs of some capital reallocation from US to Europe emerging
- Small-scale solar was surprise winner of 1H 2025 investments
Renewable energy investments set another record in the first half 0f 2025, rising 10% from the same period of last year t0 reach $386 billion. However, asset finance for utility-scale solar and onshore wind was down 13%, reflecting an adverse policy environment in some, key markets.
“Investors are rethinking capital allocation and putting their money where project returns are strongest,” said Meredith Annex, BloombergNEF’s head of clean power. Project pipelines are also taking a hit.”
Signs of capital movement
That rethink seems to be happening in some specific sectors, including offshore wind. TotalEnergies and RWE said they were reducing US activity while expanding in the North Sea in annual shareholder calls. In May, the Financial Times newspaper reported that Canadian pension fund Caisse de Depot et Placement du Quebec (CDPQ) would “rebalance investment” to Europe from the US.