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IEA Projects $500 Billion in Solar PV Investments, Surpassing Other Electricity Generation Technologies

published: 2024-06-11 16:43

The IEA's latest report details global spending on clean energy technologies and infrastructure, predicting a total of $2 trillion in these areas out of the $3 trillion overall energy investment in 2024. Solar PV is projected to lead all energy generation technologies with $500 billion in expected investment. However, analysts note that spending remains concentrated in specific regions and technologies.

The International Energy Agency (IEA) predicts that global spending on clean energy technologies and infrastructure will reach $2 trillion in 2024, surpassing the investment in fossil fuels by twofold. This amount is part of the IEA's forecast of $3 trillion in total energy investment worldwide. Solar PV now commands more investment than all other electricity generation technologies combined. With falling module prices driving fresh investment, the IEA anticipates that solar PV will attract $500 billion in investment in 2024, as outlined in their annual World Energy Investment report.

Other technologies encompass various renewables, electric vehicles (EVs), nuclear power, grids, storage solutions, low-emissions fuels, efficiency enhancements, and heat pumps. China is poised to lead in clean energy investment this year, projecting $675 billion, largely driven by domestic demand for solar, lithium batteries, and EVs. Meanwhile, Europe and the US are expected to invest $370 billion and $315 billion, respectively. In contrast, global upstream oil and gas investment is anticipated to rise by 7% to $570 billion this year.

IEA Executive Director Fatih Birol noted, "For every dollar allocated to fossil fuels today, nearly two dollars are directed towards clean energy." He emphasized the rise in clean energy spending driven by compelling economics, ongoing cost reductions, energy security considerations, and strategic industrial policy as major economies vie for prominence in new clean energy supply chains.

Analysts warn of significant imbalances and deficits in energy investment distribution across various regions, notably with a lack of substantial clean energy spending in emerging and developing economies outside of China. However, led by India and Brazil, clean energy investment in these regions is expected to surpass $300 billion for the first time.

The report highlights that this represents merely 15% of the worldwide clean energy investment, significantly below the necessary levels to satisfy escalating energy needs in numerous nations. The high cost of capital remains a deterrent to the advancement of new projects in these regions. Additionally, grids and electricity storage encounter economic hurdles. Grid investment is anticipated to rise from approximately $300 billion annually from 2015 to 2021 to $400 billion this year. Meanwhile, spending on battery storage is expected to reach $54 billion, although it remains heavily concentrated.

Source: Taiyang News

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