Global energy investment is expected to hit a record USD 3.3 trillion in 2025, with clean energy technologies attracting two-thirds of the total, signaling a major shift toward electrification and decentralized systems, according to the International Energy Agency (IEA).

Clean energy investment is projected to reach USD 2.2 trillion this year—double the USD 1.1 trillion flowing into fossil fuels. The surge is driven by climate goals, industrial policies, and energy security concerns, the IEA said in its World Energy Investment 2025 report.

Solar photovoltaic (PV) systems lead global investment, drawing USD 450 billion across utility-scale and rooftop deployments. Battery storage is also surging, with global investments rising above USD 65 billion. Grids follow closely at USD 400 billion, though the IEA warns this is still insufficient to support a growing share of electricity in total energy use.

“Energy security is emerging as a key driver of investment in this time of geopolitical and economic uncertainty,” said IEA Executive Director Fatih Birol in a statement published in its website. “Electricity is quickly becoming the new foundation of modern energy systems.”

China remains the world’s largest energy investor, accounting for nearly a third of global clean energy spending. Its investment levels now surpass the combined totals of the European Union and the United States. The country continues to dominate in solar, wind, hydropower, nuclear, batteries, and electric vehicles (EVs).

Capital flows into nuclear power are also rising, with a projected 50% increase in five years, totaling USD 75 billion in 2025. Meanwhile, investment in coal and upstream oil and gas persists, largely concentrated in China, India, and the Middle East. However, tight oil investment in the U.S. is expected to decline 6%, causing a dip in global upstream oil spending.

Southeast Asia, by contrast, is undergoing a gradual transition. While fossil fuels still make up 60% of its energy mix, clean energy investment is projected to reach USD 47 billion this year—up from USD 30 billion in 2015. The region’s solar PV manufacturing is also expanding, led by Vietnam, Thailand, and Malaysia.

Still, the report warns that grid investments must increase dramatically to match the pace of generation and storage. Without upgrades, electricity reliability may falter as demand rises.

“Spending trends clearly show that the world is entering the Age of Electricity,” Birol said. “But a secure and affordable transition demands balanced investment—especially in the infrastructure that holds the system together.”

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates on global and local clean energy trends. Join the conversation and share your insights in the comments.