Source: reuters.com
PARIS, June 5 (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.
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.
