More cash is pouring into solar energy than all different electrical energy sources mixed, with investments set to achieve half a trillion {dollars} this yr, the world’s prime vitality analysis physique stated Thursday.
The Worldwide Vitality Company (IEA) forecast in a report that international funding in clear vitality this yr will hit $2 trillion, twice the quantity going to fossil fuels.
It stated mixed funding in renewable energy and grids overtook the quantity spent on fossil fuels for the primary time in 2023.
“Clean energy investment is setting new records even in challenging economic conditions, highlighting the momentum behind the new global energy economy,” IEA government director Fatih Birol stated in a press release accompanying the company’s annual World Vitality Funding report.
Firms and governments worldwide are elevating spending on clear vitality manufacturing to cut back the carbon emissions from burning fossil fuels which are driving lethal local weather change.
The report stated enhancing provide chains and decrease prices had been driving up funding in types of so-called clear vitality, which embrace photo voltaic panels, wind generators, electrical automobiles and warmth pumps, in addition to nuclear energy technology.
Mixed funding in renewables and nuclear for electrical energy technology is now set to achieve 10 occasions the quantity going to fossil-fuel energy, led by photo voltaic, with China investing the largest share.
“More money is now going into solar PV (photovoltaic panels) than all other electricity generation technologies combined,” the report stated.
Photo voltaic panel prices have decreased by 30 p.c over the previous two years and in 2024 “investment in solar PV is set to grow to $500 billion as falling module prices spur new investments.”
By comparability, international upstream oil and gasoline funding is predicted to extend by seven p.c in 2024 to achieve $570 billion, following an identical rise in 2023.
The IEA warned nonetheless of “major imbalances and shortfalls in energy investment flows in many parts of the world” the place clear vitality tasks stay prohibitively costly.
Excluding renewable vitality big China, the $300 billion invested by rising and creating economies remained “far below what is required to meet growing energy demand in many of these countries”.
“More must be done to ensure that investment reaches the places where it is needed most,” Birol stated.
The IEA stated that assembly medium-term international targets to cut back dangerous carbon emissions would require funding in renewable energy to be doubled worldwide by 2030.
© 2024 AFP
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Photo voltaic funding outstrips all different energy varieties: IEA (2024, June 6)
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