More cash is pouring into solar energy than all different electrical energy sources mixed, with investments set to achieve half a trillion {dollars} this 12 months, the world’s high power analysis physique mentioned Thursday.
The Worldwide Power Company (IEA) forecast in a report that world funding in clear power this 12 months will hit $2 trillion, twice the quantity going to fossil fuels.
It mentioned mixed funding in renewable energy and grids overtook the quantity spent on fossil fuels for the primary time in 2023.
“Clean energy investment is setting new records even in challenging economic conditions, highlighting the momentum behind the new global energy economy,” IEA govt director Fatih Birol mentioned in an announcement accompanying the company’s annual World Power Funding report.
Corporations and governments worldwide are elevating spending on clear power manufacturing to cut back the carbon emissions from burning fossil fuels which can be driving lethal local weather change.
The report mentioned enhancing provide chains and decrease prices had been driving up funding in types of so-called clear power, which embrace photo voltaic panels, wind generators, electrical automobiles and warmth pumps, in addition to nuclear energy technology.
Mixed funding in renewables and nuclear for electrical energy technology is now set to achieve 10 occasions the quantity going to fossil-fuel energy, led by photo voltaic, with China investing the largest share.
“More money is now going into solar PV (photovoltaic panels) than all other electricity generation technologies combined,” the report mentioned.
Photo voltaic panel prices have decreased by 30 % over the previous two years and in 2024 “investment in solar PV is set to grow to $500 billion as falling module prices spur new investments.”
By comparability, world upstream oil and fuel funding is anticipated to extend by seven % in 2024 to achieve $570 billion, following the same rise in 2023.
The IEA warned nevertheless of “major imbalances and shortfalls in energy investment flows in many parts of the world” the place clear power tasks stay prohibitively costly.
Excluding renewable power big China, the $300 billion invested by rising and creating economies remained “far below what is required to meet growing energy demand in many of these countries”.
“More must be done to ensure that investment reaches the places where it is needed most,” Birol mentioned.
The IEA mentioned that assembly medium-term world objectives to cut back dangerous carbon emissions would require funding in renewable energy to be doubled worldwide by 2030.
© 2024 AFP
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Photo voltaic funding outstrips all different energy types: IEA (2024, June 6)
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