Global energy investment is projected to reach an all-time high of $3.3 trillion in 2025, with more than two-thirds directed toward clean energy technologies, according to a report released on Wednesday by the International Energy Agency (IEA).
The IEA’s World Energy Investment 2025 report estimates that $2.2 trillion will be allocated to clean energy segments including renewables, electricity grids, battery storage, nuclear power, and electrification. In contrast, investment in fossil fuels is expected to reach $1.1 trillion.
“Countries and companies are seeking to insulate themselves from a wide range of risks,” said Fatih Birol, the IEA’s executive director. “Despite geopolitical and economic uncertainties, most existing projects remain on track.”
Electricity investment—which includes generation, grid infrastructure, and storage—has grown to 50% more than spending on fossil fuel supply. A decade ago, fossil fuel investments were 30% higher than electricity-related spending, the agency noted.
Solar photovoltaic (PV) technology is forecast to attract $450 billion in investment this year, while battery storage continues to expand, reaching $65 billion. Nuclear energy spending is also rising and is expected to total $75 billion in 2025.
China remains the world’s largest energy investor, accounting for nearly one-third of global clean energy spending—close to the combined investment of the European Union and the United States.
However, the IEA warned that investment in electricity grids, currently at $400 billion annually, is not keeping pace with generation. The agency said grid spending must increase substantially by the early 2030s to maintain electricity reliability and support growing demand.
Upstream oil investment is forecast to decline by 6% next year, largely due to weaker demand and reduced activity in U.S. tight oil. In contrast, investment in liquefied natural gas (LNG) is rising, with new capacity expected from 2026 to 2028 in the United States, Qatar, Canada, and other markets.
The IEA also highlighted persistent regional disparities in investment. Africa, which accounts for about 20% of the global population, receives only 2% of global clean energy investment. Overall energy investment on the continent has declined by a third over the past decade.
The agency called for a scaling up of international public finance to help unlock greater private capital in emerging and developing economies, stating that “strategic deployment of public funds is essential to close the investment gap.
