Global energy investment is expected to increase by 10% compared to last year, reaching $1.9 trillion this year.
According to the International Energy Agency (IEA) World Energy Investment Report 2021, the electricity sector continues to maintain its weight in energy investments.
And 2021 will be the sixth year in a row that the electricity sector investments exceed those of oil and natural gas.
Back to the pre-pandemic era
Global energy investment is expected to increase 10% this year to reach $1.9 trillion and return to pre-coronavirus levels.
Investments in the global electricity sector will constitute $820 billion of this amount.
Total investments in the electricity sector will also rise to the highest level in history this year, with an increase of 5 percent compared to 2020.
Of the total investments in the electricity sector, 70 percent (369 billion dollars) of the total investments amounting to 530 billion dollars will be in electricity generation capacity from renewable energy.
And $119 billion will be fossil-fuel-based electricity generation investments.
An urgent need for clean energy investments
Investments in global nuclear energy will reach $44 billion this year, while $293 billion will be spent on power grids and batteries.
According to the report, although clean energy investments are encouraging, these investments will not be enough to create a sustainable roadmap in the global energy system.
A historic increase in clean energy investment by 2030 will be needed to bring the world to zero by 2050.
Coal investments this year will remain almost as they were last year at $91 billion.
“Clean energy investments must triple by 2030”
In his assessment of the report, Fatih Birol, head of the International Energy Agency, said the increase in global energy investment was satisfactory.
He said, “Moreover, it encourages me to see more investments in renewable energy.
However, in order for the world to reach the zero emissions target by 2050, much greater resources must be used in clean energy technologies.
According to the International Energy Agency’s roadmap, investments in clean energy must triple by 2030.”