http://www.energyefficiencynews.com/i/4252/

Global investment in green energy was up 32% last year reaching a record $211 billion, according to the latest report from the United Nations Environment Programme (UNEP).

For the first time, developing countries overtook their developed neighbours in terms of new financial investment led by China, which invested $48.9 billion, with a heavy focus on wind.

The report, Global Trends in Renewable Energy Investment 2011, drafted by Bloomberg New Energy Finance for UNEP, reveals that in total, developing nations invested $72 billion in renewables compared with $70 billion in developed economies.

Investment grew strongly in India and other Asian nations, excluding China, up 25% and 31% respectively, while South and Central America also reported substantial gains of 39%.

Although actual investment in the Middle East and Africa was only $5 billion in 2010, that represents a 104% rise over the previous year.

But while developing nations saw rising investment, utility-scale renewables in Europe actually saw new financial investment fall 22% to $35.2 billion. In the UK, that investment plunged from $10.8 billion to $2.9 billion, mainly because of the current time in the offshore wind investment cycle but also because of "uncertainty over policy".

The fall in utility-scale investment in Europe in general was offset, however, by an upsurge in microgeneration financing, particularly rooftop solar installations, which were up 132% to $34 billion in Germany, up 150% to $2.7 billion in France and up 163% to $2.3 billion in the Czech Republic.

But with solar power fast becoming cost-competitive as photovoltaic modules prices fall 60% since mid-2008, European countries are rushing to cut feed-in tariffs.

Despite that, says the report, the small-scale solar market is likely to stay strong in 2011. Wind investment also continues to lead the way, driven by falling prices that are down 18% per megawatt over the last two years.

"The combination of government target-setting, policy support and stimulus funds is underpinning the renewable industry's rise and bringing the much needed transformation of our global energy system within reach," commented UNEP executive director Achim Steiner at the report launch yesterday.

He added that the UN climate convention in Durban later this year and the summit Brazil next year will offer important opportunities to accelerate the rate of development even further.