Electricity drew more investment than fossil-fuel supply for the first time last year, as the energy industry prepared for electrification of everything from cars to buildings and industrial processes.
Power generation and electricity grid expansions took in US$718 billion, 42 percent of the US$1.7 trillion invested in energy last year, an International Energy Agency (IEA) report released yesterday said.
By contrast, oil, gas and coal supply reaped US$708 billion, a drop from last year, reflecting lower prices and profits by major oil companies.
The findings are another milestone marking a shift in the world energy industry away from the most polluting fuels as governments respond to the threat of global warming and the cost of renewables, such as wind and solar power, plunges to compete with fossil fuels.
“Oil and gas was the largest investment source for 100 years. This changed in 2016,” IEA chief economist Laszlo Varro said on a conference call. “With robust investment in renewable energy, increased investment into electricity networks, electricity is now the biggest area of capital investment.”
Renewable energy and networks made up 80 percent of all electricity investment, according to the IEA’s calculations.
New “green” power projects attracted US$297 billion last year, a decline of 3 percent from the previous year, caused by cheaper solar panels and wind turbines. Installations rose by 5 percent during that period.
Energy projects are capital-intensive and take years to develop and construct, so decisions made and money spent today shine a light on what the energy system is to look like in the decades to come.
The shift of capital flows away from fossil fuels and toward electricity, particularly “clean” sources such as solar and wind, shows that the trend spurred by the Paris climate accord is seeping into the business of energy.
China received more than one-fifth of global investment. Companies spent their capital on low-carbon electricity generation and networks, making up 65 percent of the global total at US$259 billion.
Investment into the US’ energy system rose 16 percent, mostly driven by renewable energy, the report said.
The IEA does not anticipate a revival of the coal industry, even with US President Donald Trump’s promise to bolster mining, because of market forces that started under the previous Republican US president, George W. Bush.
Europe’s offshore wind industry hit a record for investment decisions for new projects, rising to US$20 billion for 5 gigawatts of capacity. That is a 40 percent increase from the year before.
India’s spending on energy rose by 7 percent, as the Indian government sought to extend its electricity grid and improve access. Investment into coal stations rose 10 percent to US$20 billion, while capital flowing into clean energy generation added 9 percent to US$10 billion.
Electric vehicle sales grew 38 percent last year worldwide and made up 10 percent of all transport efficiency spending. About US$6 billion was spent on electric-vehicle charging stations worldwide.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS