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Global Energy Investment to Hit $3.3trn in 2025, but Africa Still Left Behind

Global Energy Investment to Hit $3.3trn in 2025, but Africa Still Left Behind
Thursday, 05 June 2025 14:46

• Global energy investment is expected to reach a record $3.3 trillion in 2025
• Nearly two-thirds will go to low-carbon technologies like solar and batteries
• Africa receives only 2% of clean energy funding despite having 20% of the world’s population

Global spending on energy is expected to reach $3.3 trillion in 2025, marking an all-time high, according to the World Energy Investment 2025 report released on June 5 by the International Energy Agency (IEA). This figure represents a 10% rise compared to 2024.

Out of this total, around $2.2 trillion, or 67%, will go toward low-carbon technologies. These include solar and nuclear power, battery storage, electric grid systems, green hydrogen, and energy efficiency solutions.

The report says this sharp rise in clean energy investment is fueled by growing concerns over energy security, aggressive industrial policies, and the rising competitiveness of electricity-based technologies. Despite the global progress, the IEA warns that deep imbalances remain. Africa, home to 20% of the world’s population, receives just 2% of global clean energy investment.

The agency notes that total energy investment across the continent has fallen by one-third over the past decade. This drop is linked to a decline in fossil fuel funding, combined with a lack of growth in financing for clean technologies. To fix this, the IEA is calling for stronger international public funding to help attract much larger volumes of private capital to Africa’s energy sector.

The report also highlights a chronic lack of investment in power grid infrastructure. Although $400 billion is expected to be spent on grids in 2025, this remains far below what is needed to meet future demand.

According to the IEA, securing stable and reliable electricity will require grid investment to match that of electricity generation by the early 2030s. Right now, the gap is still wide.

China is projected to remain the world’s top energy investor, spending twice as much as the European Union and nearly as much as the EU and the United States combined.

Solar photovoltaic energy is expected to attract $450 billion in investment, more than any other single energy technology. While the overall shift toward clean energy is gaining speed, the IEA warns that regional and sectoral imbalances continue to undermine the goal of a fair, lasting energy transition. These disparities threaten to slow down progress toward a more secure and sustainable global energy system.

The IEA’s concerns echo those raised in Energy Transition Outlook 2023, published by energy data firm Wood Mackenzie. That report also pointed to serious gaps in infrastructure and financing, estimating that $3.5 trillion in yearly investments will be needed to meet net-zero goals by 2050.

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