Global energy investment is projected to reach an all-time high of $3.3 trillion in 2025, driven by a surge in spending on clean energy technologies, according to the International Energy Agency’s (IEA) World Energy Investment 2025 report.
Despite ongoing geopolitical tensions and economic uncertainties, investment in renewables, nuclear, storage, electricity grids, low-emission fuels, and energy efficiency is expected to total $2.2 trillion—double the projected $1.1 trillion going into fossil fuels.
“Amid the geopolitical and economic uncertainties… we see energy security coming through as a key driver of the growth in global investment this year,” said Fatih Birol, Executive Director of the IEA. “Countries and companies seek to insulate themselves from a wide range of risks.”
The report emphasizes how clean energy is being propelled by climate goals, industrial policy incentives, and cost competitiveness, even as fossil fuel investment continues in select regions.
China is set to remain the world’s largest energy investor in 2025, accounting for nearly a third of global clean energy spending, up from just a quarter a decade ago. Its focus includes solar, wind, nuclear, hydropower, batteries, and electric vehicles.
“Today, China is by far the largest energy investor globally, spending twice as much on energy as the European Union – and almost as much as the EU and United States combined,” Birol added.
The global energy landscape has shifted dramatically in the last ten years. Back in 2015, fossil fuel investments exceeded electricity-related investments by 30%. In 2025, electricity investments—including generation, grids, and storage—will be about 50% higher than fossil fuel investments.
The IEA also noted that while some investors are delaying new project approvals due to economic and trade uncertainties, most existing projects are progressing without major disruptions.
These trends mark what the IEA calls a rising “Age of Electricity,” signaling a structural shift in how the world powers its future.
