Global investments in renewable energy rebounded strongly last year, registering a solid 17% increase after two years of declines and brushing aside the challenge from sharply lower crude oil prices.

Major expansion of solar installations in China and Japan and record investments in offshore wind projects in Europe helped propel global 2014 investments to $270 billion, a 17% surge from the 2013 figure of $232 billion.

It was the first annual increase in dollars invested in and committed to renewables (excluding large hydro-electric projects) in three years, a total just 3% below the all-time record of $279 billion set in 2011. The falls in the investment figures for 2012 (to $256 billion) and 2013 (to $232 billion) were attributed in part to lower prices for renewable energy technologies due to economies of scale.

The 103GW of generating capacity added around the world made 2014 the best year ever for newly installed capacity, according to the UNEP’s 9th annual “Global Trends in Renewable Energy Investments” report, prepared by the Frankfurt School–UNEP Centre, and Bloomberg New Energy Finance.

A continuing sharp decline in technology costs – particularly in solar but also in wind – means that every dollar invested in renewable energy bought significantly more generating capacity in 2014. The 103GW of capacity added by new renewable energy sources last year compares to 86GW in 2013, 89GW in 2012 and 81GW in 2011.

Wind, solar, biomass and waste-to-power, geothermal, small hydro and marine power contributed an estimated 9.1% of world electricity generation in 2014, up from 8.5% in 2013. This meant that last year the world electricity system emitted 1.3 gigatonnes of CO2 — roughly twice the emissions of the world’s airline industry — less than it would have if that 9.1% had been produced by the same fossil-dominated mix generating the other 90.9% of world power.

“Once again in 2014, renewables made up nearly half of the net power capacity added worldwide” says Achim Steiner, UN Under-Secretary-General and Executive Director of UNEP.

For more information: moira.obrien-malone@unep.org