Page 10 - Policy & Economic Report - June 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

2. Global energy investment set to rise to $3.3 trillion in 2025; clean energy to attract $ 2.2 trillion –
IEA

According to IEA, global energy investment is set to increase in 2025 to a record $3.3 trillion despite
headwinds from elevated geopolitical tensions and economic uncertainty, with clean energy
technologies attracting twice as much capital as fossil fuels.

Investment in clean technologies – renewables, nuclear, grids, storage, low-emissions fuels, efficiency,
and electrification – is on course to hit a record $2.2 trillion this year, reflecting not only efforts to
reduce emissions but also the growing influence of industrial policy, energy security concerns and the
cost competitiveness of electricity-based solutions, according to the 2025 edition of the IEA’s annual
World Energy Investment report. Investment in oil, natural gas and coal is set to reach $1.1 trillion.

According to IEA, when it published the first ever edition of its World Energy Investment report nearly
ten years ago, it showed energy investment in China in 2015 just edging ahead of that of the United
States. 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. Over the past
decade, China’s share of global clean energy spending has risen from a quarter to almost a third,
underpinned by strategic investments in a wide range of technologies, including solar, wind,
hydropower, nuclear, batteries and EVs.

Globally, spending on low-emissions power generation has almost doubled over the past five years,
led by solar PV. Investment in solar, both utility-scale and rooftop, is expected to reach $450 billion in
2025, making it the single largest item in the global energy investment inventory. Battery storage
investments are also climbing rapidly, surging above $65 billion this year.

Capital flows to nuclear power have grown by 50% over the past five years and are on course to reach
around $75 billion in 2025. Rapid growth in electricity demand also underpins continued investment
in coal supply, mainly in China and India. In 2024, China started construction on nearly 100 gigawatts
of new coal-fired power plants, pushing global approvals of coal-fired plants to their highest level
since 2015.

3. Solar surpasses nuclear for first time, contributes 10% of global power in April 2025

In April 2025, solar power surpassed nuclear energy for the first time, contributing 10% to global
electricity generation. This milestone reflects a 34% year-on-year growth in solar output, driven by
rapid capacity expansion, especially in China. Solar is now the fourth-largest power source globally,
signaling its rising dominance and the urgent need for energy storage and grid upgrades.

Over the past five years, the total installed capacity for solar energy has nearly tripled, pushing global
figures to approximately 1,866 gigawatts. Solar’s peak monthly generation is projected to exceed 260
terawatt-hours during the summer, compared to nuclear ’s average of 223 terawatt-hours. This

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