In 2024, total investments in energy will exceed $3 trillion for the first time, with $2 trillion of them going to the development of clean energy technologies and infrastructure.
Reuters cites the annual report of the International Energy Agency (IEA) on global energy investment.
About $2 trillion is planned to be spent on clean technologies, including renewable energy sources, electric vehicles, nuclear power, networks, storage, low-emission fuels, efficiency improvements, and heat pumps, and the remaining $1 trillion on gas, oil, and coal.
In 2023, total investment in renewables and grids exceeded the amount spent on fossil fuels for the first time.
“For every dollar spent on fossil fuels today, almost two dollars are invested in clean energy. The rise in clean energy costs is underpinned by a strong economy, ongoing cost reductions and energy security considerations," said IEA Executive Director Fatih Birol.
The largest investments in clean energy in 2024 were predicted to be:
- China – $675 billion;
- European countries – $370 billion;
- USA – $315 billion.
If we talk about specific technologies of electricity production, then most of the expenses are planned for solar photovoltaic technologies. Investments in this sector will increase to $500 billion due to falling prices for solar modules.
Experts expect global investment in oil and gas production to grow by 7% in 2024 to $570 billion, following similar growth in 2023. This growth was mainly driven by national oil companies in the Middle East and Asia.
Analysts also noted that in some parts of the world, such as countries with economies in transition and developing countries outside of China, there is still a shortage of investment in energy.
Previously, EcoPolitic talked about 5 trends for the global electricity and renewable energy markets. We also reported that according to REN21 analysts global transition to RES in 2023 has slowed down.
