Doha: The International Energy Agency (IEA) expects energy investments to reach USD 3.3 trillion this year, despite prevailing economic uncertainty, as China consolidates its position as the world’s largest investor. The agency noted that analyses indicate that clean energy could attract twice the amount of investment attracted by fossil fuels.

According to Qatar News Agency, the agency stated that investments in renewable energy, nuclear power, low-emission fuel storage, energy efficiency, and electricity are on course to hit a record USD 2.2 trillion. It indicated that current investment trends clearly demonstrate the approach of a new era of electricity, with investments in this sector expected to be approximately 50 percent higher than the total amount allocated to oil, natural gas, and coal.

The statement added that global investment in solar energy is expected to reach USD 450 billion in 2025, making it the first item in the global energy investment inventory. Investment in nuclear energy is expected to reach nearly USD 75 billion, a 50 percent increase over the past five years. Oil, natural gas, and coal investments are expected to reach USD 1.1 trillion, with spending focused on oil and gas exploration in the Middle East.

The decline in oil prices and demand are set to contribute to the first decline in investment in this sector since the COVID-19 crisis in 2020. This is primarily due to the sharp decline in spending on shale oil in the US. The statement pointed out that investment in electricity networks (cables, towers, etc.), which currently stands at USD 400 billion annually, will not keep pace with spending on generation and electrification, a worrying indicator of electricity security.

Oil prices have declined over the past month due to market volatility and the rise in US gasoline reserves.