The International Energy Agency (IEA) reported that global investment in clean energy is set to hit $2 trillion this year, with solar power leading the charge. According to the IEA’s annual World Energy Investment report, investments in solar energy are expected to reach half a trillion dollars, outpacing all other electricity sources combined.
“Clean energy investment is setting new records even in challenging economic conditions, highlighting the momentum behind the new global energy economy,” said Fatih Birol, IEA Executive Director.
This year marks the first time that combined investment in renewable power and grids has surpassed the amount spent on fossil fuels. Investments in renewable energy forms, including solar panels, wind turbines, electric cars, heat pumps, and nuclear power, are surging due to improving supply chains and lower costs.
China is leading the way with the largest share of investment in solar photovoltaic (PV) panels. The report noted a 30% decrease in solar panel costs over the past two years, projecting that investment in solar PV will grow to $500 billion by 2024 as module prices continue to fall.
In comparison, global upstream oil and gas investment is expected to increase by 7% in 2024, reaching $570 billion.
Despite the global trend towards clean energy, the IEA highlighted significant disparities in energy investment flows. Excluding China, emerging and developing economies invested only $300 billion in clean energy, insufficient to meet their growing energy demands.
“More must be done to ensure that investment reaches the places where it is needed most,” Birol emphasized.
The IEA stressed that to meet medium-term global goals for reducing carbon emissions, worldwide investment in renewable power needs to double by 2030.
