Jan. 8, 2008 Despite difficult conditions on the credit markets, the amount of new money invested in the clean energy sector swelled to $117.2 billion in 2007, up 41% from the previous year, according to market watcher New Energy Finance. Investment outpaced predictions by more than $20 billion.

The biggest piece of the investment pie ($54.5 billion) went to asset financing, up 40% from 2006. The highest growth rate was in public markets, where investment spiked 80%, to $18.9 billion, powered largely by the much-anticipated $6.6 billion initial public offering of Spanish wind-energy firm Iberdrola Renovables.

Venture capital and private equity new investment grew by 27% to $8.5 billion. Investors retreated from later-stage investments and returned to early-stage deals as their familiarity with the sector and technologies grew and the pipeline of market-ready opportunities dried up, according to New Energy Finance.

"Investors enthusiasm still outstrips the industrys current contribution to solving the worlds environmental and energy security problems," says Michael Liebreich, chairman and CEO of New Energy Finance. "But progress is being made on scaling up a number of sectors, particularly wind, solar, biomass and energy efficiency. The wave of liquidity washing through the sector shows no signs of abating and, despite the dark clouds still massed over the worlds credit markets, 2008 looks set to be another banner year."