Released June 10, 2024 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Global investments in clean energy are expected to account for the bulk of the spending in energy technology this year, though progress remains lopsided, the International Energy Agency (IEA) said.
The IEA said in its annual World Energy Investment report, published Thursday, that it was expecting total global energy investments to pass $3 trillion for the first time ever this year, with about $2 trillion of that going to clean technologies such as energy storage and nuclear power.
"Clean energy investment is setting new records even in challenging economic conditions, highlighting the momentum behind the new global energy economy," said IEA Executive Director Fatih Birol. "For every dollar going to fossil fuels today, almost two dollars are invested in clean energy."
Much of the focus in clean spending is on solar power, where the IEA sees as much as $500 billion in global spending. That's more than all other electric generation technologies combined.
In the U.S. economy, the world's largest, federal data show total electricity generation will increase by 3%, or by around 114 billion kilowatt-hours, this year and almost 60% of that will come from solar power.
Natural gas continues to dominate the power sector in the U.S. economy, but gas consumption forecasts are largely unchanged from year-ago levels at an average of 89 billion cubic feet per day (Bcf/d).
But total U.S. spending on renewables is almost half as much as the estimated $675 billion coming from China, the second-largest economy behind the United States. Three industries dominate clean technology spending in the Chinese economy--solar, lithium-ion batteries and electric vehicles.
Close behind is Europe, with an estimated spend of $315 billion. But it's the fact that all three major economies account for more than 60% of the total global investments that troubles the IEA.
"More must be done to ensure that investment reaches the places where it is needed most, in particular the developing economies where access to affordable, sustainable and secure energy is severely lacking today," Birol said.
On conventional energy streams, meanwhile, the IEA expects to see global investments in the exploration and production of oil and natural gas to increase by 7% from year-ago levels to reach $570 billion.
A report last year on oil demand from the IEA took note of the strong link between commodity prices and demand. Consumers in the United Kingdom shunned plans to bring hydrogen into the gas mix due to higher costs, while drivers in the United States are less incentivized to purchase cleaner vehicles when retail gasoline prices are low.
In a high-price scenario, with the global benchmark Brent at around $87 through 2028, IEA sees demand falling by 430,000 barrels per day (BBL/d). In a low-price environment, with Brent at $60, demand increases by 670,000 BBL/d by 2028.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The IEA said in its annual World Energy Investment report, published Thursday, that it was expecting total global energy investments to pass $3 trillion for the first time ever this year, with about $2 trillion of that going to clean technologies such as energy storage and nuclear power.
"Clean energy investment is setting new records even in challenging economic conditions, highlighting the momentum behind the new global energy economy," said IEA Executive Director Fatih Birol. "For every dollar going to fossil fuels today, almost two dollars are invested in clean energy."
Much of the focus in clean spending is on solar power, where the IEA sees as much as $500 billion in global spending. That's more than all other electric generation technologies combined.
In the U.S. economy, the world's largest, federal data show total electricity generation will increase by 3%, or by around 114 billion kilowatt-hours, this year and almost 60% of that will come from solar power.
Natural gas continues to dominate the power sector in the U.S. economy, but gas consumption forecasts are largely unchanged from year-ago levels at an average of 89 billion cubic feet per day (Bcf/d).
But total U.S. spending on renewables is almost half as much as the estimated $675 billion coming from China, the second-largest economy behind the United States. Three industries dominate clean technology spending in the Chinese economy--solar, lithium-ion batteries and electric vehicles.
Close behind is Europe, with an estimated spend of $315 billion. But it's the fact that all three major economies account for more than 60% of the total global investments that troubles the IEA.
"More must be done to ensure that investment reaches the places where it is needed most, in particular the developing economies where access to affordable, sustainable and secure energy is severely lacking today," Birol said.
On conventional energy streams, meanwhile, the IEA expects to see global investments in the exploration and production of oil and natural gas to increase by 7% from year-ago levels to reach $570 billion.
A report last year on oil demand from the IEA took note of the strong link between commodity prices and demand. Consumers in the United Kingdom shunned plans to bring hydrogen into the gas mix due to higher costs, while drivers in the United States are less incentivized to purchase cleaner vehicles when retail gasoline prices are low.
In a high-price scenario, with the global benchmark Brent at around $87 through 2028, IEA sees demand falling by 430,000 barrels per day (BBL/d). In a low-price environment, with Brent at $60, demand increases by 670,000 BBL/d by 2028.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
