The IEA says that money spent on energy around the world will reach a record $3.3 trillion in 2025
Global energy investment is expected to reach a record $3.3 trillion this year, even with challenges like political conflicts and economic worries, the International Energy Agency (IEA) said in a report. More money is going into clean energy technologies—twice as much as is spent on fossil fuels.
Investment in Clean Energy
Investment in clean energy—like solar, wind, nuclear, electricity grids, storage, low-emission fuels, and energy efficiency—is expected to reach a record $2.2 trillion this year, according to the IEA’s World Energy Investment report.
This big increase is mainly because countries want to reduce pollution, protect energy supplies, and use cheaper electricity solutions.
At the same time, investment in oil, natural gas, and coal will be about $1.1 trillion this year.
China’s share of clean energy spending has grown a lot in the last 10 years—from 25% to almost one-third of the world’s total. China invests in many clean technologies like solar, wind, hydro, nuclear, batteries, and electric cars. It is now the biggest energy investor in the world, spending twice as much as the EU and almost as much as the EU and US combined.
The report also says more money for oil and gas projects is going to the Middle East.
Investment Trends
The report says we are entering a “new Age of Electricity.” Ten years ago, investments in fossil fuels were much higher than investments in electricity. This year, spending on electricity is about 50% higher than spending on oil, gas, and coal.
Oil prices are lower now, so investment in oil drilling is expected to drop by 6% this year, mainly because of less spending on US tight oil.
But investment in new liquefied natural gas (LNG) projects is rising fast, with new projects in the US, Qatar, Canada, and other places. Between 2026 and 2028, the LNG market will grow more than ever before.
Important Quote
Fatih Birol, head of the IEA, said: “Because of political and economic uncertainties, energy security is a big reason why global investment will reach a record $3.3 trillion this year. Countries and companies want to protect themselves from many risks.”
He also said some investors are waiting before starting new energy projects, but most current projects are still moving forward.
Solar Energy and Nuclear Power
Spending on low-emission energy like solar power has almost doubled in the last five years. Solar power investment will reach $450 billion in 2025, making it the biggest energy investment in the world. Investment in battery storage is also rising quickly, going over $65 billion this year.
Investment in nuclear power has grown by 50% in five years and is expected to reach about $75 billion in 2025. Because electricity demand is growing fast, investment in coal also continues, mainly in China and India.
In 2024, China began building nearly 100 gigawatts of new coal power plants, making global coal plant approvals the highest since 2015.
Published: 7th June 2025
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