The International Energy Agency (IEA) reports that global energy investment will reach a record $3.3 trillion in 2025, despite geopolitical tensions and economic uncertainty. Clean energy will claim $2.2 trillion of this total—double the $1.1 trillion flowing into fossil fuels.
Solar power leads the charge. Investment in solar PV, both utility-scale and rooftop, is expected to hit $450 billion—making it the world’s largest single energy investment item. China alone exported 19 GW of solar panels to Pakistan in 2024, almost half that country’s grid capacity.
Electricity now attracts more capital than fossil fuel supply, reflecting a global pivot. Spending on the power sector will total $1.5 trillion in 2025, including $66 billion for battery storage. Nuclear energy is also making a comeback, with investment exceeding $70 billion—a 50% rise in five years.
However, grid investment—at $400 billion annually—is falling behind generation needs. Lengthy permitting and utility financial stress, especially in emerging markets, are major bottlenecks.
Fossil fuel investment is declining. Upstream oil spending is projected to drop by 6% in 2025, the sharpest fall since 2016. In contrast, investment in liquefied natural gas (LNG) projects is rising, with U.S. export capacity set to nearly double by 2028.
The energy finance gap is stark: Africa accounts for just 2% of clean energy investment despite housing 20% of the world’s population. The IEA urges reforms and targeted public finance to mobilize private capital in developing economies.