World Energy Investment 2026 (IEA)

Summary

• Global investment in energy is shown at USD 3.4 Trillion in 2026e compared with USD 2.6 Trillion in 2015.p.2
• Investments in electricity supply and infrastructure are expected to reach USD 1.6 trillion in 2026 and rise to USD 2 trillion when end-use electrification is included.p.6
• Renewables spending has dipped recently, largely because of China, but still makes up 70% of total power generation investment.p.7
• Solar PV investment rose 2.4x, from USD 170 billion to USD 400 billion.p.9
• Approvals for new natural gas-fired power plants rose to a 25-year high last year, with the United States dominating the order books.p.8
• Investments in the Middle East have been running at about half of the average levels in North America since 2021.p.4

Key insights

1. The Middle East conflict is reinforcing a strong prioritisation of energy security, coming soon after the global energy crisis of 2021-2023.p.2
2. Energy investment picked up through the previous energy crisis, led by low-emissions power, grids, electrification and efficiency.p.3
3. Cumulative upstream oil investment from 2021 to 2026e is led by North America, while Middle East resources could bring many more barrels to market if the Strait of Hormuz is open.p.4
4. Spending on grids and storage is on the rise almost everywhere, while nuclear is making a comeback.p.7
5. Solar PV cost per GW fell 76%, while investment numbers do not tell the whole story for technologies with rapidly falling costs.p.9
6. China leads on public funding for energy research and development, while the United States remains the global hub for venture capital deals in energy.p.10