Photo voltaic funding outstrips all different energy types: IEA
by AFP Employees Writers
Paris (AFP) June 6, 2024
More cash is pouring into solar energy than all different electrical energy sources mixed, with investments set to achieve half a trillion {dollars} this yr, the world’s high vitality analysis physique stated Thursday.
The Worldwide Vitality Company (IEA) forecast in a report that international funding in clear vitality this yr will hit $2 trillion, twice the quantity going to fossil fuels.
It stated mixed funding in renewable energy and grids overtook the quantity spent on fossil fuels for the primary time in 2023.
“Clear vitality funding is setting new information even in difficult financial circumstances, highlighting the momentum behind the brand new international vitality economic system,” IEA govt director Fatih Birol stated in a press release accompanying the company’s annual World Vitality Funding report.
Corporations and governments worldwide are elevating spending on clear vitality manufacturing to cut back the carbon emissions from burning fossil fuels which can be driving lethal local weather change.
The report stated bettering provide chains and decrease prices had been driving up funding in types of so-called clear vitality, which embody photo voltaic panels, wind generators, electrical vehicles and warmth pumps, in addition to nuclear energy era.
Mixed funding in renewables and nuclear for electrical energy era 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 cash is now going into photo voltaic PV (photovoltaic panels) than all different electrical energy era applied sciences mixed,” the report stated.
Photo voltaic panel prices have decreased by 30 % over the previous two years and in 2024 “funding in photo voltaic PV is ready to develop to $500 billion as falling module costs spur new investments.”
By comparability, international upstream oil and gasoline funding is anticipated to extend by seven % in 2024 to achieve $570 billion, following an identical rise in 2023.
The IEA warned nevertheless of “main imbalances and shortfalls in vitality funding flows in lots of components of the world” the place clear vitality initiatives stay prohibitively costly.
Excluding renewable vitality big China, the $300 billion invested by rising and creating economies remained “far beneath what’s required to fulfill rising vitality demand in lots of of those international locations”.
“Extra have to be finished to make sure that funding reaches the locations the place it’s wanted most,” Birol stated.
The IEA stated that assembly medium-term international objectives to cut back dangerous carbon emissions would require funding in renewable energy to be doubled worldwide by 2030.
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