BAKU, Azerbaijan, June 7. The International Energy Agency (IEA) estimated that investment in solar PV technology is projected to exceed $500 billion in 2024, outpacing all other energy generation sources combined, Trend reports.
Although the growth rate may slightly moderate due to falling PV module prices, solar power remains pivotal to the transformation of the power sector, the agency noted.
In 2023, every dollar invested in wind and solar PV produced 2.5 times more energy than the same investment a decade ago. Back in 2015, the ratio of clean power investments to unabated fossil fuel investments was about 2:1. According to the IEA, by 2024, this ratio is expected to soar to 10:1.
At the same time, as the research noted, the increased deployment of solar and wind energy has led to a significant drop in wholesale prices in some countries, occasionally driving prices below zero during peak generation periods. This trend reduces potential spot market earnings for producers and underscores the necessity for additional investments in flexibility and storage capacity.
Meanwhile, as the IEA forecasts, Global energy investment is projected to exceed $3 trillion for the first time in 2024.
Of this total, $2 trillion will be allocated to clean energy technologies and infrastructure. Since 2020, investment in clean energy has accelerated, with spending on renewable power, grids, and storage now surpassing that on oil, gas, and coal.