The International Energy Agency (IEA) has forecast that increased spending on clean energy will drive global energy investment to $3.3 trillion (2.89 trillion euros) in 2025.
According to Gas bonyan, in its annual World Energy Investment report, the IEA projected that clean energy technologies—including renewables, nuclear, and energy storage—will attract $2.2 trillion in investment, double the amount expected to go to fossil fuels.
The report states that solar energy is expected to benefit the most, with investment in solar projected to reach $450 billion in 2025. Battery storage spending is also forecast to rise to about $66 billion.
Batteries are seen as a key solution to the intermittency of renewable energy projects, storing excess power during peak generation and discharging it during peak demand. However, investment in this technology still lags behind solar and wind.
In contrast, investment in oil and gas is expected to decline. Upstream oil investment in 2025 is projected to fall by 6%, due to lower oil prices and expectations of weaker demand.
According to Reuters, the IEA also warned that the current annual investment of $400 billion in electricity grids is insufficient compared to generation and electrification spending—posing a potential threat to power security. Grid investment needs to match generation spending by the early 2030s to ensure reliable electricity supply, but achieving this is challenged by bureaucratic hurdles and strained supply chains for transformers and cables.
