IEA: Energy investment is expected to grow by 8% in 2022, nearly half from high costs
-------Reprinted from Cable Network
According to the World Energy Investment Report 2022 released by the International Energy Agency, global energy investment will grow by 8% in 2022 to reach US$2.4 trillion, with the growth expected to come mainly from clean energy.
However, nearly half of the additional $200 billion in capital investment in 2022 is likely to be consumed by higher costs rather than resulting in additional energy supply capacity or savings.
Clean energy investment could exceed $2.4 trillion by 2022, accounting for nearly three-quarters of overall energy investment growth. In the five years since the Paris Agreement was signed in 2015, annual growth in clean energy investment has been just over 2%. But since 2020, growth has accelerated significantly to 12%.
In 2022, investment in battery storage is expected to hit a new high, possibly doubling to
nearly $20 billion, the IEA said. This is driven by grid-scale deployment, which accounts for more than 70% of total spending in 2021. The project pipeline is huge, with China and the U.S. targeting about 30 GW of non-hydro storage capacity by 2025, and more than 20 GW of grid-scale projects planned or under construction in the U.S.
According to the IEA, new renewable energy capacity additions are expected to grow by 8% in 2022 and cross the 300 GW mark for the first time. Solar is expected to account for 60% of global renewable capacity additions this year, with 190 gigawatts of new capacity added, a 25% increase from last year.
