By Moses Patience Chat
The International Energy Agency (IEA) has projected that clean energy will account for about 60 percent of all global energy in 2023, thereby making investments in solar energy to surpass that of oil production, which will cover for the remaining 40%.
The Agency revealed this in its World Energy Investment Report, which was released on Thursday, May, 25. The report revealed that around $2.8 trillion is set to be invested in global energy in 2023, of which more than $1.7 trillion is expected to go into renewables, nuclear power, electric vehicles and efficiency improvements. The rest, which is about $1 trillion, will go to oil, gas and coal.
The Executive Director (ED) of IEA, Fatih Birol, stated that clean energy is moving faster than many people can realize, and that for every dollar invested in fossil fuels, about 1.7 dollars is now going into clean energy, adding that five years ago, the investment ratio was on the same level.
According to the report, 90 percent of this year’s increase in clean energy investment will occur in developed countries. This is because a myriad of factors hinder clean energy investment in developing countries, ranging from higher interest rates and capital costs to unfavorable government policies, weak power grids and financially-strained utilities.