request our brochure

Solar energy to have more investment than oil production for the 1st time, IEA reports

June 5, 2023

Global additions of renewable power capacity are expected to jump by a third this year as growing policy momentum, higher fossil fuel prices and energy security concerns drive strong deployment of solar PV and wind power, according to the latest update from the International Energy Agency.

Clean energy investments will extend their lead over fossil fuel outlays by 2023, with funding for solar projects expected to surpass that for oil production for the first time: spending on solar energy is expected to reach more than $1 billion per day or about $380 billion annually.

“Solar and wind are leading the rapid expansion of the new global energy economy. This year, the world is set to add a record-breaking amount of renewables to electricity systems – more than the total power capacity of Germany and Spain combined,” said IEA Executive Director Fatih Birol. 

Annual investment in renewable energy has increased by nearly a quarter since 2021, compared with a 15 percent hike in fossil fuels, the Paris-based energy regulator said in its World Energy Investment report.

The global energy crisis has shown renewables are critical for making energy supplies not just cleaner but also more secure and affordable – and governments are responding with efforts to deploy them faster. But achieving stronger growth means addressing some key challenges. Policies need to adapt to changing market conditions, and we need to upgrade and expand power grids to ensure we can take full advantage of solar and wind’s huge potential.”, Birol added.

Source: IEA