INDUSTRY REPORT places where it is needed most , in particular the developing economies where access to affordable , sustainable and secure energy is severely lacking today .”
When the Paris Agreement was reached in 2015 , the combined investment in renewables and nuclear for electricity generation was twice the amount going to fossil fuel-fired power . In 2024 , this is set to rise to ten times as much , the report highlights , with solar PV leading the transformation of the power sector . More money is now going into solar PV than all other electricity generation technologies combined . In 2024 , investment in solar PV is set to grow to US $ 500 billion as falling module prices spur new investments , said the IEA .
“ China is set to account for the largest share of clean energy investment in 2024 , reaching an estimated US $ 675 billion . This results from strong domestic demand across three industries in particular : solar , lithium batteries and electric vehicles . Europe and the United States follow , with clean energy investment of US $ 370 billion and US $ 315 billion respectively . These three major economies alone make up more than two-thirds of global clean energy investment , underlining the disparities in international capital flows into energy ,” said the IEA report .
“ Global upstream oil and gas investment is expected to increase by 7 % in 2024 to reach US $ 570 billion , following a similar rise in 2023 . The growth in spending in 2023 and 2024 is predominantly by national oil companies in the Middle East and Asia ,” it added .
The report finds that oil and gas investment in 2024 is broadly aligned with the demand levels implied in 2030 by today ’ s policy settings , but far higher than projected in scenarios that hit national or global climate goals . Clean energy investment by oil and gas companies reached US $ 30 billion in 2023 , accounting for only 4 % of the industry ’ s overall capital spending , according to the report . Meanwhile , coal investment continues to rise , with more than 50 gigawatts of unabated coal-fired power approved in 2023 , the highest since 2015 .
In addition to economic challenges , grids and electricity storage have been a significant constraint on clean energy transitions . But spending on grids is rising and is set to reach US $ 400 billion in 2024 , having been stuck at around US $ 300 billion annually between 2015 and 2021 . The increase is largely due to new policy initiatives and funding in Europe , the United States , China and some countries in Latin America .
“ Meanwhile , investments in battery storage are taking off and set to reach US $ 54 billion in 2024 as costs fall further . Yet again , this spending is highly concentrated . For every dollar invested in battery storage in advanced economies and China , only one cent was invested in other emerging and developing economies ,” outlined the IEA report .
Image : Olav Tvedt / Unsplash .
Wind power .
European energy policy
Nearly five years ago , at the start of this European Commission ’ s mandate , it presented an ambitious agenda of reform and modernisation called the Green Deal to put EU economies on a pathway to decarbonisation . It changed climate and energy legislation , set up new funding instruments at EU level , redefined how electricity and gas markets work and redesigned its energy infrastructure policy .
Then , in February 2022 , Russia invaded Ukraine which sent markets into turmoil . At the time , Europe was still very dependent on Russian gas so this was a pivotal moment for its energy system . Energy prices soared , inflation rose and , for the first time in a long time , many Europeans faced the prospect of not being able to pay their next energy bill .
“ But we withstood the pressure . We introduced a series of shortterm , emergency measures to ease the burden on consumers . We also resolved to put an end to our dangerous over-reliance on Russian fossil fuels . Under a plan called REPower EU , we united around three common goals : save energy , diversify energy suppliers and accelerate our clean energy transition ,” explained Commissioner Simson on 3 July 2024 in a Keynote Speech at an event on the EU ’ s energy transition and cooperation with Argentina .
“ As for the energy crisis , we are now on the other side of it . We spearheaded a radical and deep transformation of our energy system , cutting our dependence on Russian gas and speeding up our energy transition . Russian gas pipeline imports dropped dramatically from a 45 % share of overall EU imports in 2021 , to only 15 % last year . In contrast , since 2019 , EU wind and solar capacity grew by 65 %. Wind capacity climbed by 31 %. Solar capacity surged even faster , more than doubling from 120 to 257 Giga Watts . This is equivalent to installing more than two hundred and thirty thousand solar panels every day during these four years . Simply put , we have accelerated the energy transition at a much faster pace than anyone predicted ,” he continued .
He confirmed that the strategic decision to decarbonise the energy sector was the best way to ensure energy security and drive economic growth as well as innovation .
“ The lesson we learned is that clean energy transition needs a network of partnerships . That ’ s why the EU has revived its energy diplomacy , deepening energy relations with many partners around the world . We are determined to engage with partners and support them in their economic , green and digital transitions ,” added Commissioner Simson .
Russian gas pipeline imports dropped dramatically from a 45 % share of overall EU imports in 2021 , to only 15 % last year
Image : Shutterstock . com
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