According to a report released on Thursday by the International Energy Agency (IEA), global investment in solar power is anticipated to surpass that in oil production for the first time ever this year.
According to the IEA, investments in solar energy will reach $380 billion in 2023, compared to $370 billion for oil exploration and extraction.
Dave Jones, director of data insights at the energy think tank Ember, declared that solar had now been “crowned as a true energy superpower.”
But he continued, “the irony remains that some of the sunniest places in the world have the lowest levels of solar investment.”
Increase in Renewable Energy
The total annual investment in renewable energy is anticipated to reach $1.7 trillion in 2023, a about 25% increase from 2021.
Fossil fuel investments were projected to total another $1 trillion. According to Paris-based energy monitor World Energy Investment, spending in this area has climbed by 15% since 2021.
IEA Executive Director Fatih Birol stated that “clean energy is moving fast — faster than many people realise.” “Right now, clean energy makes up around $1.7 of every dollar spent on fossil fuels. This ratio was 1:1 five years ago.
The majority of investments in green energy go towards photovoltaic solar panels.
Fossil fuel investments are still increasing.
The IEA stated that, despite advancements in solar and renewable energy in general, investment in fossil fuels is rising when it ought to be declining quickly in order to achieve net-zero emissions by the year 2050.
For instance, it is still anticipated that spending on upstream oil and gas will increase by 7% in 2023, partly as a result of an increase in investment by a few national oil corporations in the Middle East following the coronavirus epidemic.
More than 90% of all new investments in renewable energy were made in China and advanced economies, according to the IEA, which creates “a serious risk of new dividing lines in global energy if clean energy transitions do not pick up elsewhere.”
In order to prevent catastrophic global warming, scientists agree that nations must drastically cut greenhouse gas emissions, for instance by moving away from fossil fuels.