Renewables on the rise
Solar outperforms oil in global investment for the first time
5/25/2023 1:32 p.m
In many countries there is still heated debate about renewable energy, others are clearly committed to it and are investing. According to a study, global production of solar energy alone will surpass that of oil in 2023 for the first time. But a lot of money is also being invested in fossil fuels.
Investments in renewable energies worldwide are growing faster and faster – according to the International Energy Agency (IEA), this year the money invested in the expansion of solar energy will exceed investments in oil production for the first time. In 2023, more than a billion dollars will flow into solar power every day worldwide, which means it will be 380 billion dollars a year. In contrast, the IEA estimates investments in oil production at 370 billion dollars this year.
According to the study, total investment in renewables this year will reach $1.7 trillion, with around $1 trillion going into oil, gas and coal production. This means that investments in renewables have increased by 24 percent annually between 2021 and 2023, and investments in fossil fuels by 15 percent.
“Clean energy is growing fast, faster than many people think,” said IEA chief Fatih Birol. For every dollar that goes into fossil fuels, about $1.7 goes into renewables. Five years ago, this ratio was still one to one. The Russian war of aggression against Ukraine and the resulting sharp rise in energy prices would have accelerated this trend.
Sunny regions are weakening
The problem with this development is the strong dominance of China and the industrialized countries in the solar industry, according to the study. Investment activity is often weak in regions that are among the sunniest in the world, of all places, said energy expert Dave Jones from the Ember think tank.
In addition, according to the IEA, investments in fossil fuels are still too high. According to the study, this year they are likely to reach the level of 2019 again. That is more than twice as much as should be invested in these energy sources in 2030 if the world wants to achieve the goal of climate neutrality by 2050. According to the IEA, investments in coal are even six times higher in 2023 than they should be in 2030.