(Paris) The sun still at its highest: investments in solar electricity could surpass those devoted to all other sources of electricity production in 2024, the International Energy Agency (IEA) said in an annual report on Thursday .
Investments “in solar photovoltaic technology are expected to exceed $500 billion in 2024, surpassing all other sources of (electrical) production combined,” estimates the IEA in its opus devoted to investments in energy.
As in 2023, solar energy should attract more investments than those dedicated to electricity production from fossil fuels (coal, oil, gas), wind power, nuclear power and dams.
Despite rising interest rates, which are holding back new projects, particularly in the Global South, “global investments in clean energy are expected to almost double compared to fossil fuels in 2024, thanks to improving energy supply chains. supply and falling costs of clean technologies”.
According to the IEA, in 2024, the world will spend $2 trillion to equip itself with clean energy (solar, wind and nuclear, electric vehicles, electric grids and storage, low-carbon fuels, energy efficiency, heat pumps): twice as much as the amount for fossil fuels (1000 billion).
Investments in gas and oil extraction and production are expected to reach $570 billion this year (7% after 9% in 2023).
Last year, investment in renewable electricity and grids “exceeded the amount spent on fossil fuels for the first time,” the Paris-based OECD Energy Agency said.
The IEA emphasizes, however, that “there are significant investment imbalances.”
Excluding the Chinese juggernaut, the $300 billion projected in 2024 in emerging and developing economies falls well short of “what is needed to meet the growing demand for energy in many of these countries.”
“We must do more so that investments go to the places where they are most needed,” argues Mr. Birol.
States and companies are accelerating investments in clean energy to reduce greenhouse gas emissions from fossil fuels, which heat the planet.
According to the IEA, investments would need to be doubled to triple renewable energy capacity by 2030.