Global energy investment is set to reach a record $3.3 trillion in 2025, with clean energy technologies taking the lead, according to the International Energy Agency (IEA). Despite global economic uncertainty and geopolitical tensions, spending on renewables, nuclear, and energy storage is projected to hit $2.2 trillion—double the amount expected for fossil fuels.
The IEA’s annual World Energy Investment report highlights solar energy as the biggest winner, with investment expected to top $450 billion next year. Battery storage is also gaining traction, with spending forecast to jump to $66 billion, as demand grows for technologies that support the intermittency of renewables by storing excess power for peak usage periods.
In contrast, investment in oil and gas is projected to decline. Upstream oil investment is expected to drop by 6% in 2025, marking the first decrease since the 2020 pandemic-induced downturn. The decline is driven by lower oil prices and reduced demand forecasts.
However, the IEA warns of a looming risk to electricity security due to lagging investment in power grids. Current annual grid spending of $400 billion falls short compared to generation and electrification investments. The agency stresses that grid investments must reach near parity with generation by the early 2030s, but progress is hindered by regulatory delays and supply chain bottlenecks for essential components like transformers and cables.
Spending is also uneven globally. While China accounts for nearly one-third of clean energy investment, many developing nations face difficulties attracting capital for essential infrastructure upgrades, underscoring a widening global energy gap. The IEA urges accelerated and balanced investment to ensure a secure and sustainable energy future.


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