Solar investment outstrips all other power forms: According to IEA
On Thursday, 6th of June 2024, the world’s leading energy research organization announced that Solar investment would go above half a trillion dollars during the year, going above those made in all other forms of electricity together. In research, the International Energy Agency (IEA) predicted that two trillion dollars will be invested around the world in clean energy sources this year, twice as much as is invested in fossil fuels. It stated that in 2023, overall spending on clean energy sources and networks will rise above that on fossil fuels for the 1st time.
According to the International Energy Agency CEO Fatih Birol in a statement that included the organization’s annual World Energy Investment report, “Keep it clean investments in energy is reaching new levels even in unfavorable economic circumstances, showing the growth that is driving the new worldwide energy economy.” To cut the amount of greenhouse gases from heating fossil fuels that are causing dangerous climate change, businesses and governments throughout the world are increasing their investment in the generation of clean energy. Investment in known as clean energy, which involves nuclear power generation, electric vehicles, solar power plants, wind turbines, and heat pump technology, is increasing, according to the research, as supply chains become more efficient and costs are reduced. With China contributing the largest portion, the total amount invested in renewable energy sources, as well as nuclear energy, will now overtake that of fossil fuels 10 times over. Solar energy is going to lead the way in this regard.
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According to the research, “a bit more money is being invested into solar PV (photovoltaic panels) than into all other power producing technologies together.” In the last 2 years, the cost of solar panels has dropped by 30%, while by the year 2024, “investment in photovoltaic panels is forecast to expand to five hundred billion dollars as lowering module prices promote new investments.”
On the other hand, it is expected that worldwide oil and gas upstream investment will climb by 7% in 2024 to 570 billion dollars after rising by a similar amount in 2023. However, in many regions of the world where clean energy projects are still unaffordable, the International Energy Agency (IEA) issued a warning about major imbalances and gaps in energy investment streams. With China being the sole member of the clean energy behemoth, countries that are developing or emerging spent three hundred billion dollars, which is “a long way under what is necessary to fulfill expanding needs for energy in many of these nations.”
To guarantee that funding reaches the areas where it is most urgently required, more must be done, according to CEO Fatih Birol. The International Energy Agency stated that doubling global investment in electricity from renewable sources by 2030 would be necessary to satisfy intermediate-duration global targets for minimizing harmful carbon emissions.
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