Global energy investment set to hit record $3.3 trillion in 2025, IEA says

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The International Energy Agency (IEA) forecasts that global energy investment will reach a record $3.3 trillion in 2025, driven primarily by a surge in clean energy spending, despite ongoing economic uncertainties and geopolitical tensions. According to the IEA's annual World Energy Investment report, clean energy technologies, including renewables, nuclear, and energy storage, are expected to attract $2.2 trillion, significantly outpacing the anticipated investments in fossil fuels.

Solar power is projected to receive the largest share of this investment, with an estimated $450 billion allocated for 2025, while battery storage investments are expected to rise to around $66 billion. However, the report notes a decline in oil and gas investments, particularly in upstream oil, which is set to decrease by 6% due to lower oil prices and demand. The IEA also highlights concerns regarding grid investments, which at $400 billion annually, fall short of generation and electrification spending, potentially jeopardizing electricity security, especially in developing economies.