Renewable energy sources are likely to attract $2 trillion in worldwide investment in 2024, out of a total of $3 trillion projected for the year, according to an International Energy Agency estimate.
The IEA stated that total global energy investment is likely to exceed $3 trillion for the first time, according to The Punch.
“Some $2tn is expected to flow towards clean technologies such as renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements, and heat pumps. The remainder – slightly over $1tn – is set to go to coal, gas and oil,” the report said.
It revealed that, despite funding constraints, worldwide investment in clean energy is expected to nearly double that of fossil fuels by 2024, thanks to improved supply chains and lower clean technology costs.
However, the energy agency warned that, despite record-breaking spending on clean energy, there were significant imbalances and gaps in energy investment in many parts of the world.
It added that China, which was seeing high domestic demand for solar, lithium batteries, and electric vehicles, was expected to account for the majority of clean energy investment this year, with an estimated $675 billion.
Europe and the United States follow suit, with renewable energy investments of $370 billion and $315 billion, respectively.
These three major economies alone make up more than two-thirds of global clean energy investment,” the report revealed.
The report indicates that this level of spending, which accounted for just approximately 15% of the global total, was significantly below what was required to meet rising energy demand in many of those nations, where high capital costs hampered the development of new projects.
According to the IEA, global upstream oil and gas investment is predicted to expand by 7% in 2024, reaching $570 billion, following a similar increase in 2023.
“This is broadly aligned with the demand levels implied in 2030 by today’s policy settings, according to the report – but it is far higher than projected in scenarios that hit national or global climate goals.
“Notably, clean energy investments by oil and gas companies accounted for only 4 per cent of the industry’s overall capital spending in 2023,” the report read.
Nigeria has chosen gas as its transition fuel because it is cheaper and cleaner than petrol and diesel.
In addition, The Rural Electrification Agency intends to generate approximately nine megawatts of electricity through solar grids.
