Latest news with #WorldEnergyInvestment
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
Global energy investment to hit record $3.3 trillion in 2025: IEA
Global energy investment is set to increase in 2025 to a record $3.3 trillion despite headwinds from elevated geopolitical tensions and economic uncertainty, as per a new IEA report, with clean energy technologies attracting twice as much capital as fossil fuels. Investment in clean technologies – renewables, nuclear, grids, storage, low-emissions fuels, efficiency and electrification – is on course to hit a record $2.2 trillion this year, reflecting not only efforts to reduce emissions but also the growing influence of industrial policy, energy security concerns and the cost competitiveness of electricity-based solutions, according to the 2025 edition of the IEA's annual World Energy Investment report. Investment in oil, natural gas and coal is set to reach $1.1 trillion. In addition to a comprehensive assessment of the current investment landscape across fuels, technologies and regions, this 10th edition of the World Energy Investment report explores some of the major changes over the past decade. Global energy investment is projected to reach a record $3.3 trillion in 2025, with $2.2 trillion going to clean energy technologiesâ€'double that of fossil fuels, according to the IEA. While solar and battery storage lead growth, grid investment lags behind. China dominates global energy spending, but developing economies, particularly in Africa, remain underfunded. 'Amid the geopolitical and economic uncertainties that are clouding the outlook for the energy world, we see energy security coming through as a key driver of the growth in global investment this year to a record $3.3 trillion as countries and companies seek to insulate themselves from a wide range of risks,' said IEA executive director Fatih Birol . '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.' 'When the IEA published the first ever edition of its World Energy Investment report nearly ten years ago, it showed energy investment in China in 2015 just edging ahead of that of the United States,' Birol added. 'Today, China is by far the largest energy investor globally, spending twice as much on energy as the European Union – and almost as much as the EU and United States combined.' Over the past decade, China's share of global clean energy spending has risen from a quarter to almost a third, underpinned by strategic investments in a wide range of technologies, including solar, wind, hydropower, nuclear, batteries and EVs. At the same time, global spending on upstream oil and gas is gravitating towards the Middle East. Today's investment trends clearly show a new age of electricity is drawing nearer. A decade ago, investments in fossil fuels were 30 per cent higher than those in electricity generation, grids and storage. This year, electricity investments are set to be some 50 per cent higher than the total amount being spent bringing oil, natural gas and coal to market. Globally, spending on low-emissions power generation has almost doubled over the past five years, led by solar PV. Investment in solar, both utility-scale and rooftop, is expected to reach $450 billion in 2025, making it the single largest item in the global energy investment inventory. Battery storage investments are also climbing rapidly, surging above $65 billion this year. The report points out that capital flows to nuclear power have grown by 50 per cent over the past five years and are on course to reach around $75 billion in 2025. Rapid growth in electricity demand also underpins continued investment in coal supply, mainly in China and India. In 2024, China started construction on nearly 100 gigawatts of new coal-fired power plants, pushing global approvals of coal-fired plants to their highest level since 2015. In a worrying sign for electricity security, investment in grids, now at $400 billion per year, is failing to keep pace with spending on generation and electrification. Maintaining electricity security would require investment in grids to rise towards parity with generation spending by the early 2030s. However, this is being held back by lengthy permitting procedures and tight supply chains for transformers and cables. Lower oil prices and demand expectations are set to result in the first year-on-year fall in upstream oil investment since the COVID slump in 2020, according to the report. The expected 6 per cent drop is driven mainly by a sharp decline in spending on US tight oil. By contrast, investment in new liquefied natural gas (LNG) facilities is on a strong upward trajectory as new projects in the United States, Qatar, Canada and elsewhere prepare to come online. Between 2026 and 2028, the global LNG market is set to experience its largest ever capacity growth. Spending patterns remain very uneven globally – with many developing economies, especially in Africa, struggling to mobilise capital for energy infrastructure, the report finds. Today, Africa accounts for just 2 per cent of global clean energy investment. Despite being home to 20 per cent of the world's population and rapidly growing energy demand, total investment across the continent has fallen by a third over the past decade due to declining fossil fuel spending and insufficient growth in clean energy. To close the financing gap in African countries and other emerging and developing economies, international public finance needs to be scaled up and used strategically to bring in larger volumes of private capital, according to the report. Fibre2Fashion News Desk (RR)
Qatar Tribune
3 days ago
- Business
- Qatar Tribune
‘Clean energy investment to be twice that of fossil fuels'
Agencies 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 electricitysecurity.
Qatar Tribune
5 days ago
- Business
- Qatar Tribune
Global energy investment set to rise to $3.3 trillion in 2025: IEA
Satyendra Pathak Doha Global energy investment is projected to reach a record $3.3 trillion in 2025, with clean energy technologies attracting twice as much capital as fossil fuels, according to the International Energy Agency (IEA). This surge is driven by strong economic fundamentals, declining technology costs, and energy security considerations, despite ongoing geopolitical tensions and economic uncertainties Global investment in clean energy technologies—including renewables, nuclear, power grids, energy storage, low-emissions fuels, energy efficiency, and electrification—is projected to reach a record $2.2 trillion in 2025, according to the latest edition of the IEA's World Energy Investmentreport. This surge not only underscores efforts to reduce carbon emissions but also highlights the growing impact of industrial policies, heightened energy security concerns, and the increasing cost competitiveness of electricity-based solutions. In contrast, investment in oil, natural gas, and coal is expected to total $1.1 trillion, reflecting a continued but comparatively limited capital flow into fossil fuels. In addition to offering a comprehensive analysis of current investment trends across various fuels, technologies, and regions, the 10th edition of the World Energy Investment report also reflects on key shifts over the past decade. 'Amid the geopolitical and economic uncertainties clouding the global energy outlook, energy security has emerged as a major driver of the record $3.3 trillion in global investment this year, as countries and companies work to shield themselves from a broad spectrum of risks,' said IEA Executive Director Fatih Birol. 'While the rapidly changing economic and trade environment is prompting some investors to delay approvals for new energy projects, most existing projects remain largelyunaffected.' 'When the IEA published the first ever edition of its World Energy Investment report nearly ten years ago, it showed energy investment in China in 2015 just edging ahead of that of the United States,' Birol added. 'Today, China is by far the largest energy investor globally, spending twice as much on energy as the European Union – and almost as much as the EU and United Statescombined.' Over the past decade, China's share of global clean energy spending has risen from a quarter to almost a third, underpinned by strategic investments in a wide range of technologies, including solar, wind, hydropower, nuclear, batteries and EVs. At the same time, global spending on upstream oil and gas is gravitatingtowards the Middle East. Today's investment trends clearly show a new Age of Electricity is drawing nearer. A decade ago, investments in fossil fuels were 30 percent higher than those in electricity generation, grids and storage. This year, electricity investments are set to be some 50 percent higher than the total amount being spent bringing oil, natural gas and coal to market. Globally, spending on low-emissions power generation has almost doubled over the past five years, led by solar PV. Investment in solar, both utility-scale and rooftop, is expected to reach $450 billion in 2025, making it the single largest item in the global energy investment inventory. Battery storage investments are also climbing rapidly, surging above $65 billion this year. Capital flows to nuclear power have grown by 50 percent over the past five years and are on course to reach around $75 billion in 2025. Rapid growth in electricity demand also underpins continued investment in coal supply, mainly in China and India. In 2024, China started construction on nearly 100 gigawatts of new coal-fired power plants, pushing global approvals of coal-fired plants to their highest level since 2015. In a worrying sign for electricity security, investment in grids, now at $400 billion per year, is failing to keep pace with spending on generation and electrification. Maintaining electricity security would require investment in grids to rise towards parity with generation spending by the early 2030s. However, this is being held back by lengthy permitting procedures and tight supply chains for transformers and cables. Lower oil prices and demand expectations are set to result in the first year-on-year fall in upstream oil investment since the Covid slump in 2020, according to the report. The expected 6% drop is driven mainly by a sharp decline in spending on US tight oil. By contrast, investment in new liquefied natural gas (LNG) facilities is on a strong upward trajectory as new projects in the United States, Qatar, Canada and elsewhere prepare to come online. Between 2026 and 2028, the global LNG market is set to experience its largest ever capacity growth. Spending patterns remain very uneven globally – with many developing economies, especially in Africa, struggling to mobilise capital for energy infrastructure, the report finds. Today, Africa accounts for just 2 percent of global clean energy investment. Despite being home to 20 percent of the world's population and rapidly growing energy demand, total investment across the continent has fallen by a third over the past decade due to declining fossil fuel spending and insufficient growth in clean energy. To close the financing gap in African countries and other emerging and developing economies, international public finance needs to be scaled up and used strategically to bring in larger volumes of private capital, according to the report. This year's edition of the World Energy Investment report features an interactive data explorer that enables users to compare energy investments across multiple sectors, fuels and technologies between the periods 2016–2020 and 2021–2025, covering global trends as well as data for 19 individual countries and regions.
Japan Today
5 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.
Observer
5 days ago
- Business
- Observer
Global energy investment set to hit record $3.3 trillion in 2025, IEA says
PARIS: 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 — marking 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.— Reuters
