Latest news with #ForrestCrellin
Japan Today
2 days ago
- Business
- Japan Today
Global energy investment set to hit record $3.3 trillion in 2025, IEA says
By Forrest Crellin A surge in clean energy spending is expected to drive a record $3.3 trillion in global energy investment in 2025, despite economic uncertainty and geopolitical tensions, the International Energy Agency (IEA) said on Thursday. Clean energy technologies, including renewables, nuclear, and energy storage, are set to attract $2.2 trillion in investment, twice the amount expected for fossil fuels, the IEA said in its annual World Energy Investment report. "The fast-evolving economic and trade picture means that some investors are adopting a wait-and-see approach to new energy project approvals, but in most areas we have yet to see significant implications for existing projects," IEA Executive Director Fatih Birol said. Solar power is expected to be the biggest beneficiary, with investment forecast to reach $450 billion in 2025, while spending on battery storage is predicted to surge to around $66 billion, the report said. Batteries are seen as a way to mitigate the intermittency of renewable energy projects, by storing power during peak supply and discharging during peak demand, but investments in the technology have lagged behind solar and wind power. In contrast, investment in oil and gas is expected to decline, with upstream oil investment set to fall by 6% in 2025, driven by lower oil prices and demand expectations and the first drop since the COVID crisis in 2020. The IEA also warned that investment in grids of $400 billion per year is lower than spending on generation and electrification, which could pose a risk to electricity security. Grid investments will need to rise to near parity with generation spending by the early 2030s to maintain electricity security, but this is being held back by red tape and tight supply chains for transformers and cables. Spending patterns remain very uneven globally, with many developing economies struggling to mobilise capital for energy infrastructure, while China dominates global clean energy investment at almost one-third of the total. © Thomson Reuters 2025.
Yahoo
3 days ago
- Business
- Yahoo
Global energy investment set to hit record $3.3 trillion in 2025, IEA says
By Forrest Crellin PARIS (Reuters) -A surge in clean energy spending is expected to drive a record $3.3 trillion (2.89 trillion euros) in global energy investment in 2025, despite economic uncertainty and geopolitical tensions, the International Energy Agency (IEA) said on Thursday. Clean energy technologies, including renewables, nuclear, and energy storage, are set to attract $2.2 trillion in investment, twice the amount expected for fossil fuels, the IEA said in its annual World Energy Investment report. "The fast-evolving economic and trade picture means that some investors are adopting a wait-and-see approach to new energy project approvals, but in most areas we have yet to see significant implications for existing projects," IEA Executive Director Fatih Birol said. Solar power is expected to be the biggest beneficiary, with investment forecast to reach $450 billion in 2025, while spending on battery storage is predicted to surge to around $66 billion, the report said. Batteries are seen as a way to mitigate the intermittency of renewable energy projects, by storing power during peak supply and discharging during peak demand, but investments in the technology have lagged behind solar and wind power. In contrast, investment in oil and gas is expected to decline, with upstream oil investment set to fall by 6% in 2025, driven by lower oil prices and demand expectations and the first drop since the Covid crisis in 2020. The IEA also warned that investment in grids of $400 billion per year is lower than spending on generation and electrification, which could pose a risk to electricity security. Grid investments will need to rise to near parity with generation spending by the early 2030s to maintain electricity security, but this is being held back by red tape and tight supply chains for transformers and cables. Spending patterns remain very uneven globally, with many developing economies struggling to mobilise capital for energy infrastructure, while China dominates global clean energy investment at almost one-third of the total. (1 euro = $1.1414) Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Global energy investment set to hit record $3.3 trillion in 2025, IEA says
By Forrest Crellin PARIS (Reuters) -A surge in clean energy spending is expected to drive a record $3.3 trillion (2.89 trillion euros) in global energy investment in 2025, despite economic uncertainty and geopolitical tensions, the International Energy Agency (IEA) said on Thursday. Clean energy technologies, including renewables, nuclear, and energy storage, are set to attract $2.2 trillion in investment, twice the amount expected for fossil fuels, the IEA said in its annual World Energy Investment report. "The fast-evolving economic and trade picture means that some investors are adopting a wait-and-see approach to new energy project approvals, but in most areas we have yet to see significant implications for existing projects," IEA Executive Director Fatih Birol said. Solar power is expected to be the biggest beneficiary, with investment forecast to reach $450 billion in 2025, while spending on battery storage is predicted to surge to around $66 billion, the report said. Batteries are seen as a way to mitigate the intermittency of renewable energy projects, by storing power during peak supply and discharging during peak demand, but investments in the technology have lagged behind solar and wind power. In contrast, investment in oil and gas is expected to decline, with upstream oil investment set to fall by 6% in 2025, driven by lower oil prices and demand expectations and the first drop since the Covid crisis in 2020. The IEA also warned that investment in grids of $400 billion per year is lower than spending on generation and electrification, which could pose a risk to electricity security. Grid investments will need to rise to near parity with generation spending by the early 2030s to maintain electricity security, but this is being held back by red tape and tight supply chains for transformers and cables. Spending patterns remain very uneven globally, with many developing economies struggling to mobilise capital for energy infrastructure, while China dominates global clean energy investment at almost one-third of the total. (1 euro = $1.1414) Sign in to access your portfolio
Yahoo
10-04-2025
- Business
- Yahoo
Global trade war may produce headwinds for nascent AI sector, IEA says
By Forrest Crellin PARIS (Reuters) - An escalating global tariff war could provide challenges for the emerging data centre sector and cause slower growth, Laura Cozzi, the International Energy Agency (IEA) Director of Technology told Reuters. The U.S., China and the European Union together are set to account by 2030 for 80% of the forecast growth in data centre demand growth, which is expected to be dominated by Artificial Intelligence (AI) use, the IEA said in a report on Thursday. The report's headwind scenario "encompasses many of the things we are seeing - slower economic growth, more tariffs in more countries, so indeed yes (the current tariff environment) is a scenario in which AI would see a slower growth than what we see in our base case," Cozzi said. Global electricity consumption from data centres is expected to rise to around 945 terawatt hours (TWh) by 2030 in the IEA's base case scenario, but the "headwind scenario" would see that drop to 670 TWh, IEA data showed. In the United States, data centres are expected to account for nearly half of electricity demand growth between now and 2030, and the country is expected to lead in data centre development globally, according to IEA data. U.S. electricity utilities have been fielding massive requests for new capacity that would exceed their peak demand or existing generation capacity, raising concerns that tech companies are approaching multiple power utility providers, inflating the demand outlook. The report aims to work with tech companies and industry to make sense of the real queue for data centres, which is ultimately going to be essential for AI to get the electricity it needs, Cozzi said. Strain on grids could also lead to project delays, with about 20% of planned data centre projects at risk. Demand for transmission lines and critical grid and generation equipment are in high demand, reflecting this risk, the IEA report said. Some 50% of data centres under development in the United States are in pre-existing large clusters, potentially raising risks of local bottlenecks, it said. Sign in to access your portfolio
Yahoo
11-02-2025
- Business
- Yahoo
Connection challenge could hamper nuclear powered France's bid as AI hub
By Forrest Crellin and Elizabeth Howcroft PARIS (Reuters) - The time needed to connect power-hungry data centres to the electricity grid could blunt France's advantage using its abundant nuclear power to lure billions of dollars of investment into artificial intelligence, investors and experts said. Hosting a global summit on AI this week, French President Emmanuel Macron credited the country's reliable and clean nuclear power with helping attract more than 100 billion euros ($103.26 billion) in AI investments as Europe races to catch up with the United States, the global leader. Among the pledges was a $10 billion facility for a supercomputer operated by UK-based Fluidstack that will eventually need 1 gigawatt (GW) of power, roughly the amount generated by one of France's smaller nuclear reactors. Asset manager Brookfield said it would spend 20 billion euros on AI infrastructure in France, including data centres. With 57 nuclear reactors, France produces more than two-thirds of its electricity from nuclear power. Last year, it exported a record amount, about 17% of its production, mostly to Italy. Data centres would lift demand for power, following a slump in industrial consumption after Russia's invasion of Ukraine triggered soaring energy prices. However, planned data centres could still be years away, experts said, with burdensome permitting and construction procedures hampering a quick buildout. "The countries that have the electricity supply ... (which is) sustainable and affordable, they are one step ahead of the others," Fatih Birol, executive director of the International Energy Agency, told global leaders and tech executives attending the summit on Tuesday. "But the problem is the following ... a data centre you build in less than one year, but the transmission lines for electricity you need about five years to build." 'NUTS AND BOLTS' Construction in Europe is especially slow, said Anj Midha, general partner at U.S. venture capital firm Andreessen Horowitz. "The nuts and bolts of actually assembling the data centres in time, running the cables, sort of the ground logistics of this all require a level of permitting and construction acceleration that the U.S. is far ahead on," he told Reuters on the sidelines of the AI summit. In an effort to speed up the process, state-owned utility EDF said on Monday it had identified four sites on its own land for data centres, with grid connections already in place, and total available power of about 2 GW. "This will reduce the time needed to complete projects by several years," it said in a statement. EDF said in November that it was in talks with three companies to power their 1 GW data centre projects in France, but cautioned that the projects could take years to complete, slowed down by the cost and public consultation required to build new high-voltage power lines. ($1 = 0.9684 euros) Sign in to access your portfolio
