In 2025, global energy investment is projected to reach a record $3.3 trillion, marking about a 2% increase compared to last year. For the first time, clean energy is set to capture the majority of this capital, with approximately $2.2 trillion allocated to renewables, nuclear, grids, battery storage, efficiency improvements, low-emission fuels, and electrification projects. This figure is nearly double the $1.1 trillion expected to flow into fossil fuels, highlighting a decisive shift in where companies and governments are placing their bets for the future of the energy system. Analysts see this milestone as clear evidence that the energy transition is entering a new phase, where low-carbon investments are no longer peripheral they are becoming the central driver of infrastructure growth.
Among all clean energy sectors, solar photovoltaic continues to lead the way. It is expected to receive a record $450 billion in investment this year alone, making it the single largest energy category by spending. Battery storage is also gaining unprecedented traction, with roughly $66 billion set aside to build systems that help balance renewable generation with demand. Investments in electricity grids are rising but still lag behind generation capacity needs, with about $400 billion directed to grid infrastructure annually. This imbalance underscores a critical challenge: without modern, expanded transmission systems, new renewable generation risks bottlenecks and reliability issues that can slow decarbonization.
Despite this surge in clean energy funding, important gaps remain. Fossil fuel investment continues in parallel, driven by new gas and coal projects in regions such as Asia, where energy demand is growing rapidly. Meanwhile, developing economies—especially across Africa—are seeing only a fraction of the new investment, even though they account for about 20% of the global population. Experts warn that to ully realize the potential of this historic shift, countries will need to accelerate not only renewable deployment but also equitable funding for grid upgrades and energy access. Without these complementary investments, the promise of a cleaner, more secure energy future risks leaving large parts of the world behind.