From Yahoo Finance: 2025-06-06 07:02:00

Global energy investment is set to reach $3.3tn in 2025, with clean energy technologies attracting twice the capital of fossil fuels. Investment in renewables, grids, storage, and electrification is expected to hit $2.2tn, reflecting a shift towards reducing emissions and increasing energy security.

China leads global energy investment, spending twice as much as the EU and nearly as much as the EU and US combined. The trend indicates a move towards an “age of electricity,” with electricity investments expected to be 50% higher than fossil fuel investments by 2025.

Solar investment is projected to reach $450bn in 2025, making it the largest item in global energy investment. Battery storage investments are rapidly increasing, exceeding $65bn in the same year. Nuclear power capital flows have grown by 50% in five years, reaching $75bn in 2025.

Lower oil prices and demand expectations may result in a 6% drop in upstream oil investment. Conversely, investment in new liquefied natural gas facilities is on the rise, with significant capacity growth expected between 2026 and 2028. Developing economies, particularly in Africa, struggle to mobilize capital for energy infrastructure.

The IEA’s World Energy Investment report highlights major changes in the investment landscape over the past decade. Energy security is a key driver of global investment growth, reaching a record $3.3tn amid geopolitical and economic uncertainties. Scaling up international public finance is suggested to attract private capital in regions with limited investment.

Read more: IEA anticipates global energy investment to be $3.3tn in 2025