Global energy investment is set to increase in 2025 to $3.3tr despite headwinds from elevated geopolitical tensions and economic uncertainty, a new IEA report says, with clean energy technologies attracting twice as much capital as fossil fuels.

Investment in clean technologies: renewables; nuclear, grids, storage, low-emissions fuels, efficiency and electrification; is on course to hit $2.2tr this year, reflecting not only efforts to reduce emissions but also the growing influence of industrial policy, energy security concerns and the cost competitiveness of electricity-based solutions, according to the 2025 edition of the IEA’s annual World Energy Investment report. Investment in oil, natural gas and coal is set to reach $1.1tr.

“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 $3.3tr as countries and companies seek to insulate themselves from a wide range of risks,” said IEA executive director Fatih Birol. “The fast-evolving economic and trade picture means that some investors are adopting a wait-and-see approach to new energy project approvals, but in most areas we have yet to see significant implications for existing projects.”

Globally, spending on low-emissions power generation has almost doubled over the past five years, led by solar PV. Investment in solar, both utility-scale and rooftop, is expected to reach $450bn in 2025, making it the single largest item in the global energy investment inventory. Battery storage investments are also climbing rapidly, surging above $65bn this year.

But, in a worrying sign for electricity security, investment in grids, now at $400bn per year, is failing to keep pace with spending on generation and electrification, and spending patterns remain very uneven globally, with many developing economies, especially in Africa, struggling to mobilise capital for energy infrastructure.

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