Global energy investment stabilised in 2018, ending three consecutive years of decline, as capital spending on oil, gas and coal supply bounced back while investment stalled for energy efficiency and renewables, according to the International Energy Agency’s (IEA) latest annual review. The findings of the World Energy Investment 2019 report signal a growing mismatch between current trends and the paths to meeting the Paris Agreement and other sustainable development goals.
However, there are still few signs of improvements in energy efficiency and energy production from renewable sources.
“Energy investments now face unprecedented uncertainties, with shifts in markets, policies and technologies,” said Dr Fatih Birol, the IEA’s Executive Director. "But the bottom line is that the world is not investing enough in traditional elements of supply to maintain today’s consumption patterns, nor is it investing enough in cleaner energy technologies to change course. Whichever way you look, we are storing up risks for the future.”
That is a real issue of concern, considering what is happing on the renewables front. New net capacity from solar PV, wind, hydro, bioenergy, and other renewable power sources increased by about 180 GW in 2018, the same as the previous year. That’s only around 60% of the net additions needed each year to meet long-term climate goals. This bring into question the possibility of achieving the long-term goals of renewables, given that the installation in 2018 represents only 60% of the necessary annual net increase.
"The world cannot afford to press 'pause' on the expansion of renewables and governments need to act quickly to correct this situation and enable a faster flow of new projects" ended Dr Birol.
Read the press release here.
