Global energy investment is set to hit a record $3.3 trillion (£2.4 trillion) this year, driven by a surge in clean energy spending, despite ongoing geopolitical tensions and economic uncertainty.
According to the latest IEA World Energy Investment report, clean technologies — renewables, nuclear, grids, storage, low-emission fuels, efficiency and electrification — are on track to attract $2.2 trillion this year.
That is more than double the $1.1 trillion earmarked for oil, gas and coal.
The shift reflects not just climate goals but also rising industrial policy, energy security concerns and the cost edge of electricity-based solutions.
Fatih Birol, IEA Executive Director, said:
Amid the geopolitical and economic uncertainties that are clouding the outlook for the energy world, we see energy security coming through as a key driver of the growth in global investment this year to a record $3.3 trillion as countries and companies seek to insulate themselves from a wide range of risks.”
East is leading
Investment patterns have shifted dramatically over the past decade.
China leads the global charge, spending twice as much on energy as the European Union and nearly as much as the EU and US combined.
Its share of clean energy investment has jumped from a quarter to almost a third, backed by major projects in solar, wind, hydro, nuclear, batteries and electric vehicles.
The report highlights a new Age of Electricity, with global spending on power generation, grids and storage now outpacing fossil fuel investment by 50%.
Solar PV investment alone is expected to reach $450 billion in 2025, making it the largest single category. Battery storage is also surging, with spending rising above $65 billion.
Meanwhile, upstream oil and gas spending is increasingly concentrated in the Middle East. Despite lower oil prices and demand, liquefied natural gas (LNG) investment is booming, with new US, Qatar and Canadian projects set to push global capacity to record highs by 2028.
Grids left behind
However, electricity grid investment — at $400 billion annually — is lagging behind generation and electrification, threatened by slow permitting and supply chain bottlenecks.
The IEA warns this gap must close to ensure electricity security, aiming for grid spending to match generation by the early 2030s.
Africa’s clean energy investment remains woefully low, accounting for just 2% globally despite hosting 20% of the population and surging demand.
Investment there has dropped by a third over the decade, driven by declining fossil fuel spend and insufficient growth in renewables.
To bridge this gap, the IEA calls for a major scale-up in international public finance, used strategically to attract private capital in emerging and developing economies.
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