Investment in solar energy outstrips all other forms of energy: IEA June 6, 2024

The cost of solar panels has fallen by 30% in the last two years, reports the IEA Sia KAMBOU

By AFP - Agence France Presse

Investment in solar energy outstrips all other forms of energy: IEA

More money is being invested in solar power than in all other sources of electricity combined, with investments expected to reach half a trillion dollars this year, the world's leading energy research body said on Thursday.

The International Energy Agency (IEA) predicted in a report that global investment in clean energy this year will reach US$2 trillion, double the amount going into fossil fuels.

The IEA said that combined investment in renewable energy and grids would surpass the amount spent on fossil fuels for the first time in 2023.

“Investment in clean energy is setting new records, even in challenging economic conditions, highlighting the momentum behind the new global energy economy,” IEA executive director Fatih Birol said in a statement accompanying the agency's annual World Energy Investment report.

Companies and governments around the world are increasing spending on clean energy production to reduce carbon emissions from burning fossil fuels that are causing deadly climate change.

The report states that improved supply chains and lower costs are increasing investment in forms of so-called clean energy, which include solar panels, wind turbines, electric cars, and heat pumps, as well as nuclear power generation.

The combined investment in renewable and nuclear energy for electricity generation is expected to reach 10 times the amount allocated to fossil fuel energy, led by solar energy, with China investing the largest share.

“More money is being invested in photovoltaic solar panels than in all other electricity generation technologies combined,” said the report.

The cost of solar panels has fallen by 30% in the last two years, and by 2024, “investment in solar photovoltaics is expected to grow to $500 billion, as falling module prices spur new investment”.

In comparison, global investment in upstream oil and gas is expected to increase by 7% in 2024, reaching $570 billion, following a similar increase in 2023.

However, the IEA warned of “major imbalances and shortcomings in energy investment flows in many parts of the world”, where clean energy projects remain prohibitively expensive.

Excluding renewable energy giant China, the $300 billion invested by emerging and developing economies remained “far below what is needed to meet growing energy demand in many of these countries”.

“More needs to be done to ensure that investment reaches the places where it is most needed,” said Birol.

The IEA said that to meet global medium-term targets to reduce harmful carbon emissions, it would be necessary to double investment in renewable energy worldwide by 2030.

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