Global Energy Investment to Reach $3.3 Trillion in 2025: IEA Report

The International Energy Agency (IEA) expects global energy investment to reach $3.3 trillion in 2025, with clean energy technologies receiving $2.2 trillion, marking a decisive structural shift towards the "Age of Electricity." Fossil fuels will receive only $1.1 trillion. China, Europe, and the US lead the charge in clean energy investment, with solar power being the largest investment magnet at $450 billion. However, grid investment lags behind, with only $400 billion allocated annually.

The International Energy Agency (IEA) has released its latest report, predicting a significant increase in global energy investment for 2025. According to the IEA, global energy investment is expected to reach $3.3 trillion, with a substantial shift towards clean energy technologies. Clean energy investments are projected to reach $2.2 trillion, marking a decisive structural shift towards the "Age of Electricity." In contrast, fossil fuels are expected to receive only $1.1 trillion [1].

This shift is driven by China, Europe, and the United States, which are leading the charge in clean energy investment. Solar power is the largest investment magnet, with $450 billion allocated to its development. However, grid investment lags behind, with only $400 billion allocated annually [1].

Indonesia is also making significant strides in clean energy investment. The World Bank has approved two major investment packages worth a combined US$2.1 billion to support job creation, economic growth, and the expansion of clean energy access across Indonesia. One of these initiatives, the Sustainable Least-Cost Electrification-2, focuses on expanding access to renewable energy and aims to deliver electricity to 3.5 million people and support the development of 540 megawatts (MW) of solar and wind power [2].

Enbridge, a Canadian company, is also investing heavily in clean energy. It has secured a $28 billion capital program till 2028 for expansion projects, with around 43% allocated to the expansion of gas transmission pipelines. The company expects to grow its 2025 adjusted EBITDA by 9.4% to $19.7 billion, driven by income from three US gas utilities and the new pipelines that came into operation [3].

These investments highlight the global commitment to transitioning towards clean energy and reducing reliance on fossil fuels. However, the IEA also notes that grid investment needs to be scaled up to support the growing demand for clean energy.

References:
[1] https://www.businesstimes.com.sg/international/asean/world-bank-approves-us2-1-billion-investment-support-indonesias-growth-and-clean-energy-goals
[2] https://www.fool.ca/2025/06/17/where-will-enbridge-be-in-3-years/
[3] https://www.fool.ca/2025/06/17/where-will-enbridge-be-in-3-years/