INDUSTRY REPORT
“ In 2023 , combined investment in renewable power and grids overtook the amount spent on fossil fuels for the first time .”
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INDUSTRY REPORT
THE POWER PRINCIPLE
We present the latest analysis of trends , drivers and investment patterns in global power generation and energy markets .
According to the IEA ( International Energy Agency ), global spending on clean energy technologies and infrastructure is on track to hit US $ 2 trillion in 2024 even as higher financing costs hinder new projects , notably in emerging and developing economies . Despite pressures on financing , global investment in clean energy is set to reach almost double the amount going to fossil fuels in 2024 , helped by improving supply chains and lower costs for clean technologies , said a new IEA report .
Total energy investment worldwide is expected to exceed US $ 3- trillion in 2024 for the first time . Some US $ 2 trillion is set to go towards clean technologies including renewables ; electric vehicles ; nuclear power ; grids ; storage ; low-emissions fuels ; efficiency improvements and heat pumps , according to the latest edition of the IEA ’ s annual World Energy Investment report . The remainder , slightly over US $ 1 trillion , is going to coal , gas and oil .
In 2023 , said the IEA , combined investment in renewable power and grids overtook the amount spent on fossil fuels for the first time .
Global clean energy investments
The new IEA report warns , however , that there are still major imbalances and shortfalls in energy investment flows in many parts of the world . It highlights the low level of clean energy spending in emerging and developing economies ( outside China ), which is set to exceed US $ 300 billion for the first time — led by India and Brazil . Yet , this accounts for only about 15 % of global clean energy investment , far below what is required to meet growing energy demand in many of these countries where the high cost of capital is holding back the development of new projects .
“ Clean energy investment is setting new records even in challenging economic conditions , highlighting the momentum behind the new global energy economy . For every dollar going to fossil fuels today , almost two dollars are invested in clean energy ,” said IEA Executive Director , Fatih Birol .
“ The rise in clean energy spending is underpinned by strong economics , by continued cost reductions and by considerations of energy security . But there is a strong element of industrial policy , too , as major economies compete for advantage in new clean energy supply chains . More must be done to ensure that investment reaches the
36 | ismr . net | ISMR September 2024