Global energy investments to reach $3.1 trillion by 2024, with solar leading, says report
There is a global shift toward sustainable energy, with energy investments rising from $2.4 trillion in 2018 to $3.1 trillion by 2024, with solar leading green energy investments, according to the World Solar Investment Report. The report by the International Solar Alliance (ISA), released today, states that solar accounts for 59% of the total investments, driven by lower costs, with the Asia-Pacific (APAC) region emerging as the top investing area.
According to the report, rising investments in clean energy are pushing overall energy investment above $3 trillion. “Investments across the energy sector have been steadily increasing, with total investments rising from $2,383 billion in 2018 to $3,120 billion by 2024, marking a compound annual growth rate (CAGR) of approximately 4.6%,” it states.
Within the power sector, a major subset of the energy basket, significant growth is evident, with investments in power generation alone accounting for 68% ($893 billion) in 2023, the report finds. The share of investments in fossil fuels has dipped from 49% ($1,171 billion) in 2018 to a forecasted 36% ($1,116 billion) in 2024. Meanwhile, investment in clean fuels is surging from 51% ($1,212 billion) in 2018 to 64% ($2,004 billion) by 2024, recording a CAGR of approximately 8.7%.
“This shift underscores a global move toward a more sustainable and resilient energy system. Renewable energy investments are rising, hitting a record $673 billion in 2023. Within this segment, solar investments made up about 58.35%, demonstrating a clear preference for solar technology,” the report further states.
The prices of minerals and metals crucial for energy transitions, especially in battery production, have fallen. Driven by these factors, investment in solar photovoltaic (PV) technology is estimated to surpass $500 billion by 2024, positioning solar to potentially dominate the power generation investment landscape.
Regionally, APAC is at the forefront of solar investments, pouring $223 billion into solar in 2023. Major reasons for this strong growth in APAC are predominantly attributed to increasing electricity demand, supportive policies, and technological advancements.