Moscow, Jun 2 (Sputnik): The International Energy Agency (IEA) expects the world’s investment in the energy sector to grow by nearly 10% to $1.9 trillion in 2021 after a record drop last year, according to the IAE’s fresh report released on Wednesday.
The agency projected a 20% year-on-year decrease in 2020 — the highest drop on record — that was triggered by the energy crisis and the outbreak of the coronavirus pandemic.
“In 2021, annual global energy investment is set to rise to $1.9 trillion, rebounding nearly 10% from 2020 and bringing the total volume of investment back towards pre-crisis levels. However, the composition has shifted towards power and end-use sectors – and away from traditional fuel production,” the World Energy Investment 2021 report read.
Global power sector investment is set to grow by 5% this year to over $820 billion, with renewables further dominating investment and amounting to 70% of a total of $530 billion spent on all new generation capacity, IEA said.
“Upstream oil and gas investment is expected to rise by about 10% in 2021 as companies recover financially from the shock of 2020, but spending remains well below pre-crisis levels,” the reports added.
The agency also noted that this year would be the sixth in a row when capital spending in the power sector would be higher than for oil and gas supply.
Global energy investment to rebound in 2021: IEA