PARIS / EuroWire / — Global energy investment is projected to reach $3.4 trillion in 2026, rising 5% from 2025 as electricity systems, clean energy technologies and fuel supply spending draw new capital, the International Energy Agency (IEA) said in its World Energy Investment 2026 report published May 28. The Paris-based agency said about $2.2 trillion is set to flow into grids, storage, low-emissions fuels, nuclear power, renewables, efficiency and electrification, compared with about $1.2 trillion for oil, natural gas and coal.
The report places electricity at the center of global energy capital spending. Investment in electricity supply and infrastructure is projected to reach nearly $1.6 trillion in 2026, and around $2 trillion when end-use electrification is included. Grid spending is forecast to approach $550 billion, up nearly 20% from 2025, while battery storage investment is set to exceed $100 billion.
The IEA said the effects of the Middle East conflict and the effective closure of the Strait of Hormuz have increased attention on energy security and reliability of trade flows. The report said current disruptions follow the 2022 energy crisis linked to Russia’s invasion of Ukraine and have affected shipping flows through the Strait of Hormuz, with Asia and the Middle East among the regions most exposed to the disruption.
Electricity investment drives global spending
Renewable power investment is forecast at about $665 billion in 2026, including $365 billion for solar alone. Annual growth in renewables spending has moderated after several years of rapid expansion, but low-emissions sources are still projected to account for more than 70% of global power generation investment. Nuclear investment is also continuing to rise, exceeding $80 billion annually, with close to 80 gigawatts of new nuclear capacity under construction across 15 countries.
Fuel investment remains divided by sector. Oil investment is projected to decline for a third consecutive year in 2026, falling below $500 billion even with higher oil prices. Natural gas investment is projected to rise to $330 billion, its highest level in a decade, supported by new liquefied natural gas export projects, particularly in the United States and Qatar. Coal investment is forecast at $180 billion, the highest level since 2012, with China accounting for almost 70% of global coal supply spending.
Security concerns reshape capital flows
The report said energy efficiency spending is running at about $350 billion annually worldwide, while policy coverage for efficiency has broadened in recent years. IEA policy tracking indicates that about 20 countries have announced new efficiency policies linked to the current crisis. Financing conditions remain a constraint for some energy projects, with the report noting higher long-term financing costs and greater pressure on capital-intensive technologies in emerging and developing economies.
China, the United States and the European Union remain central to the 2026 investment increase, according to the agency’s regional dashboard. Clean energy investment is projected to rise 7% year-on-year in advanced economies and China, and 4% in other emerging markets. The IEA said the 2026 figures show continued growth in energy capital flows across power systems, fuel supply, efficiency and electrification, with global investment reaching a new high in nominal terms.