BAKU, Azerbaijan, May 29. Global investments in power sector are expected to reach $1.2 trillion in 2023, Trend reports.
Investment in the power sector experienced a remarkable 12-percent growth in 2022, surpassing the milestone of $1 trillion for the first time ever, the International Energy Agency (IEA) said.
Looking towards 2023, further expansion is anticipated, with investments projected to reach nearly $1.2 trillion. The IEA comprehensive analysis of capital flows and investments indicates that the global energy crisis has acted as a catalyst for the accelerated adoption of clean energy technologies. The compelling economic viability of renewable energy sources has been reinforced by strategic policy initiatives, such as the US Inflation Reduction Act, the EU's REPowerEU plan and Fit-for-55 package, as well as India's ambitious renewables targets.
Notably, renewables and grid infrastructure are the primary focus of power sector investments, projected to attract over $1 trillion in investments in 2023.
In 2023, renewables alone will see an increase of 10-percent in investments, reaching more than $650 billion, after hitting a record high of almost $600 billion last year.
Meanwhile, in 2022, capital expenditure on fossil fuel power saw a modest increase, reaching nearly $110 billion. However, this figure remains considerably lower than the average annual expenditure of $135 billion observed between 2016 and 2021.
