The State of Energy Innovation 2026 (IEA)

Summary

• Global public energy R&D spending is estimated to be down a further 2% in 2025 to USD 55 billion.p.11
• Corporate energy R&D stood at USD 160 billion in 2024, with growth of 1% the slowest since 2015 other than pandemic-hit 2020.p.11
• VC investments in energy technology start-ups shrank for the third year straight in 2025, to USD 27 billion.p.11
• Energy storage's share of energy patenting reached 40% in 2023, an unprecedented share for any energy technology.p.12
• European start-ups accounted for 25% of global energy VC in 2025, compared with 15% five years before.p.13
• Fusion start-ups have raised USD 10 billion since 2020, over 5% of all energy VC funding.p.14
• Over 320 new energy start-ups raised their first funding in 2025.p.3

Key insights

1. One in ten patents is related to energy, more than for chemicals, pharmaceuticals or transport.p.9
2. In the expert survey, 80% of respondents placed energy security among the top three drivers of energy innovation in 2025.p.9
3. The US federal energy R&D budget dipped by 8% in 2025.p.11
4. Public energy R&D spending in IEA Member countries stands at around 0.05% of GDP, far lower than the 0.1% seen after the 1970s oil shocks.p.11
5. Solar perovskite now accounts for over 70% of all solar cell patents, and 2025 saw the world's first 33% efficiency solar cell at marketable dimensions.p.12
6. Nearly 50% of global energy VC in 2025 was raised by US start-ups, a higher share than in 2024.p.13
7. Of the projects in the more advanced phases of the IEA Races to First, 40% are in Europe and 20% are in the United States.p.13
8. Public energy R&D programmes in the US up to 2015 generated benefits to the US economy at least three times greater than their costs.p.10