BAKU, Azerbaijan, June 7. Global investments in energy grids are expected to reach $400 billion in 2024, the International Energy Agency (IEA) expects, Trend reports.
The agency highlights that grids have become a bottleneck for energy transitions, but investment is on the upswing. After hovering around $300 billion annually since 2015, spending is projected to surge this year. This rise will be fueled by new policies and funding initiatives in Europe, the US, China, and select regions in Latin America.
Notably, advanced economies and China collectively account for 80 percent of global grid spending. Latin America has witnessed a significant increase in investment, nearly doubling since 2021, particularly in countries like Colombia, Chile, and Brazil, where spending doubled in 2023 alone. However, investment levels remain alarmingly low in other regions.
Investments in battery storage are also on the rise, expected to exceed $50 billion in 2024. Yet, spending in this sector remains highly concentrated. In 2023, for every dollar invested in battery storage in advanced economies and China, only one cent was invested in other emerging markets and developing economies (EMDE).
Despite economic challenges, investment in energy efficiency and electrification in buildings and industry has shown resilience. the agency noted. However, the real dynamism in end-use sectors is observed in transport, with investment projected to reach record highs in 2024, driven by robust sales of electric vehicles (EVs).
As the IEA explained, the surge in clean energy spending is driven by emissions reduction goals, technological advancements, and energy security imperatives, particularly in the EU. Additionally, major economies are implementing new industrial strategies to promote clean energy manufacturing and gain stronger market positions.
While these policies offer local benefits, entering sectors with ample global capacity, such as solar PV, presents challenges. Policy makers must strike a balance between costs and benefits to enhance the resilience of clean energy supply chains while maximizing gains from trade.