Global Clean Energy Investment Set to Top US$2.2 Trillion
According to a report by the International Energy Agency (IEA) , global investment in clean energy is set to reach US$2.2 trillion in 2025. This is double the investment in fossil fuels and US$20 billion more than 2024.
Key Findings
Sectors receiving the financing include renewable power (US$780 billion), energy efficiency and end use (US$773 billion), grids and storage (US$479 billion), nuclear and other clean power (US$82 billion), and low emission fuels (US$40 billion).
Regions and countries receiving investment include China (US$627 billion), United States (US$400 billion), European Union (US$ 386 billion), Japan and Korea (US$103 billion), India (US$100 billion), emerging economies (US$300 billion), and other advanced economies (US$175 billion).
‘The Age of Electricity’ is shaping investment trends, with exponential increase in demand for electricity driven by data centres and artificial intelligence, industry and electric mobility. Over the last decade, end use investments in electrification and other efficiency enhancements have nearly doubled. Boosted by strong electric vehicle sales, advancements in building technology and the electrification of industrial processes, demand-side investment is expected to reach about US$800 billion in 2025.
Spending on clean energy generation has almost increased 100% since 2020, with solar photovoltaic (PV) leading the way. Investment in utility-scale and rooftop solar is predicted to reach US$450 billion in 2025, the highest spending item among clean energy initiatives.
Meanwhile, costs for some key renewable energy technologies have been trending downwards. In comparison to 2014, the IEA’s Clean Energy Equipment Price Index was down 60% in early 2024. Furthermore, Chinese solar panel and wind turbine prices have lowered by 60% and 50% respectively since 2022.
Prospects for Renewable Energy
Without a doubt, the global energy transition is well underway. With increasing investments and lower costs, adoption of clean energy is accelerating. REDEX, Asia’s leading renewable energy solutions provider, enables companies to adopt clean energy conveniently. If you are a business that is seeking to seize opportunities in the green transition, contact us to find out how we can support your renewable energy journey. Email enquiry@redex.eco or visit www.redex.eco.