- The IEA’s new report charts the global spending on clean energy technologies and infrastructure
- It forecasts $2 trillion spending this year on these verticals, out of total $3 trillion in energy investment in 2024
- Solar PV leads all other energy generation technologies with $500 billion expected this year
- Spending remains concentrated in certain regions and technologies, according to the analysts
The International Energy Agency (IEA) forecasts global spending on clean energy technologies and infrastructure to hit $2 trillion in 2024, twice the amount going to fossil fuels. This will be out of $3 trillion it forecasts in total energy investment worldwide.
Solar PV now attracts more money than all other electricity generation technologies put together. In 2024, as falling module prices spur new investment, the IEA analysts expect solar PV to attract an investment of $500 billion in the annual World Energy Investment report.
Other technologies will be other renewables, electric vehicles (EV), nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps.
China will account for the largest share of clean energy investment this year with $675 billion, thanks majorly to domestic demand for solar, lithium batteries and EVs. Europe will partake $370 billion while the US will invest $315 billion.
In comparison, global upstream oil and gas investment will likely increase by 7% this year to $570 billion.
“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.
Analysts do caution that there are major imbalances and shortfalls in energy investment flows in several parts of the world with a low level of clean energy spending in emerging and developing economies, outside China. Led by India and Brazil, it will exceed $300 billion for the 1st time.
The report writers point out that 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.
Grids and electricity storage also face economic challenges. Spending on the grids is expected to increase from around $300 billion annually between 2015 and 2021 to now $400 billion this year. For battery storage, the spending is set to reach $54 billion, yet it is highly concentrated.
The complete report is available for free download on the IEA’s website.
