BAKU, Azerbaijan, June 28. Global investment in the energy sector is expected to reach a record $3.4 trillion in 2026, as governments and businesses increasingly prioritize energy security.
This was reflected in the statement published by the Ministry of Energy of Uzbekistan, showcasing an increase of 5% from the previous year.
Nearly two-thirds of total investment, or about $2.2 trillion, is projected to flow into clean energy technologies, including renewable power generation, nuclear energy, electricity grids, energy storage systems and electrification projects. Investment in oil, natural gas and coal is expected to total approximately $1.2 trillion.
The global energy transition is no longer driven solely by efforts to combat climate change. Growing geopolitical tensions, including instability in the Middle East and risks to key energy transit routes such as the Strait of Hormuz, are prompting countries to strengthen domestic energy production and reduce exposure to external supply disruptions.
"Solar energy is a $365 billion industry. Over the past decade, the cost of deploying 1 GW of solar capacity has fallen from $3 billion to $700 million, and the volume of new installations has increased tenfold. The highest growth in solar panel imports is being observed in Africa and Southeast Asia." the ministry noted in the statement.
Investment in wind power is forecast to reach $200 billion, while hydropower projects are expected to receive $75 billion.
Nuclear energy is also experiencing renewed momentum, with global investment projected at $80 billion. New nuclear facilities with a combined capacity of 78 gigawatts are currently under construction across 15 countries, while more than 40 nations have adopted policies supporting the sector's development.
Electricity grids are expected to attract $550 billion in investment, representing a 20% increase from previous levels, while energy storage systems are projected to receive $100 billion. Industry experts increasingly view grid infrastructure as one of the most critical challenges facing the global energy transition.
Investment in energy efficiency improvements is expected to reach $350 billion.
Electricity-related sectors now account for approximately 60% of global energy investment, reflecting the growing importance of electrification across economies.
Demand from artificial intelligence applications and data centers is emerging as a major driver of electricity consumption. Investment in data center infrastructure alone reached $100 billion in 2025, exceeding total energy-sector investment across the African continent.
According to industry estimates, investments in renewable energy, electrification and energy-efficiency technologies helped major energy-importing countries reduce fuel import costs by approximately $260 billion in 2025. China accounted for roughly $110 billion of those savings.
As renewable generation expands, many countries are reducing their dependence on imported fossil fuels, particularly natural gas. Analysts say this shift is transforming the energy transition from an environmental initiative into a broader economic and strategic policy tool aimed at strengthening resilience against geopolitical uncertainty and external supply shocks.
Analysis
The latest investment projections suggest that energy security has become as important a driver of the global energy transition as climate policy. While decarbonization remains a key objective, recent geopolitical disruptions have highlighted the economic and strategic risks associated with dependence on imported fuels.
The sharp increase in investment in electricity grids, storage systems and domestic power generation reflects a growing recognition that reliable energy supply is now a national security issue. Countries are increasingly seeking to diversify energy sources and reduce vulnerability to disruptions in global commodity markets.
"The continued decline in renewable energy costs, particularly in solar power, is accelerating this trend. Renewable technologies are becoming not only cleaner alternatives but also economically competitive sources of energy that can improve energy independence and lower long-term costs." the Trend's analysis says.
The resurgence of nuclear energy is another notable development. After years of relatively limited growth, many governments are turning to nuclear power as a stable, low-carbon source of electricity capable of supporting expanding power demand from industry, electrification and artificial intelligence-related infrastructure.
For emerging economies, the shift presents both opportunities and challenges. Countries that invest in renewable generation, modern grid infrastructure and energy efficiency could strengthen energy security, reduce fuel import bills and improve industrial competitiveness. However, financing requirements remain substantial, particularly for large-scale transmission networks and energy storage systems.
Overall, the data indicate that the global energy transition is entering a new phase—one driven not only by environmental considerations but also by economic resilience, technological transformation and geopolitical realities.
