[The Vector] Large Rise in Green Investment

The World Economic Forum says worldwide investment in green energy rose 30% in 2010. Investment reached $234 billion in 2010, up from $186 billion a year earlier. The WEF states that higher oil prices would most likely increase demand for more clean energy.

The WEF also announced that investment in small-scale energy projects took off last year, almost doubling from the previous year. More than $59.6 billion was invested worldwide, and the WEF said Germany’s rooftop solar capacity grew by a record amount. Countries with feed-in tariffs, like Italy, the UK and Czech Republic, saw rapid growth.

The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.

The WEF reports that government debt levels following the global economic crisis mean that some countries are cutting back on support for clean energy. Some reductions in feed-in tariffs may occur. The WEF stressed that continuing lack of an energy bill is an obstacle to clean energy growth in the U.S.

For the future, the WEF believes green energy should continue with strong growth, supported by the fact that more clean energy sources can now compete with traditional fossil fuel power generation. Solar power has in some markets reached parity with retail electric prices, says the report. “Today, geothermal, biomass and wind projects can compete with and surpass their fossil-based rivals in increasingly significant energy markets.”

The WEF, in collaboration with Bloomberg New Energy Finance, has made the latest report entitled Green Investing Report 2011 available to all.