According to the World Energy Investments 2025 report published by the International Energy Agency (IEA), global energy investments will increase by 2% this year, reaching USD 3.3 trillion, breaking a record. Two-thirds of this amount, about USD 2.2 trillion, will be made up of clean energy technologies. These investments, which cover areas such as renewable energy, nuclear, networks, storage, low-emission fuels, efficiency and electrification, contribute not only to climate goals but also to energy security and industrial policies.
The IEA points out that investment trends show that a new “electricity era” has begun in the world. While 10 years ago fossil fuel investments outpaced investments in power generation and grid by 30%, this year spending on the electricity sector is expected to be 50% higher than investments in oil, gas and coal.
Solar takes the lead, nuclear and grid investments on the rise
On a resource basis, solar energy investments account for the largest share of clean energy, amounting to USD 450 billion. This amount has almost doubled in the last five years. Nuclear energy investments also increased by 50% to USD 75 billion, while grid investments are estimated to reach USD 400 billion.
However, the IEA notes that the fact that grid investments lag behind generation investments is a concern for electricity security. It is emphasized that grid projects, which are progressing slowly due to long permitting processes and supply chain constraints, should reach the same level as generation investments by the early 2030s.
Oil declines, coal rises
On the fossil fuel side, a different picture stands out. Oil investments are expected to decline for the first time after the pandemic. It is stated that this 6% decrease will be largely due to investment cuts in the US. On the other hand, coal investments are expected to increase by 4%. China and India, in particular, continue to invest in new coal capacity. China starts construction of nearly 100 gigawatts of new coal plants in 2023, with new capacity approved at the highest level since 2015.
China's leadership strengthens
Commenting on the report, IEA President Fatih Birol stated that energy investments increased despite geopolitical and economic uncertainties. Stating that energy security has become the most important factor in investment decisions, Birol said, “This year, the investment amount will reach a record high of USD 3.3 trillion. China spends twice as much as the European Union in energy investments, almost as much as the EU and the US combined. Having just overtaken the US in 2015, China is now by far the largest energy investor.”
According to the report, China's share in total energy investment has increased from 25% to 33% in the last 10 years. Intensive investments in areas such as solar, wind, hydropower, nuclear, batteries and electric vehicles support this increase.
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