Why in NEWS?
The International Energy Agency (IEA) has released the 10th edition of its World Energy Investment Report, offering vital insights into the current and projected global energy investment patterns for 2025.
KEY TERMS & DEFINITIONS
| Term | Explanation |
|---|---|
| IEA (International Energy Agency) | Paris-based energy policy advisory body formed in 1974 by OECD nations. |
| Clean Energy | Energy from non-polluting sources like solar, wind, nuclear, and hydro. |
| Grid Infrastructure | Systems used to transport electricity from producers to consumers. |
| Battery Storage | Technology that stores electrical energy for future use. |
| Fossil Fuels | Energy from coal, oil, and natural gas. |
| LNG | Liquefied Natural Gas – natural gas cooled to liquid form for transport. |
NEWS DETAILS
| Theme | Details |
|---|---|
| Global Investment Surge | Total global energy investment to hit USD 3.3 trillion, with USD 2.2 trillion going into clean energy. |
| Solar & Battery Focus | Solar investment to touch USD 450 billion; Battery storage crosses USD 65 billion. |
| Nuclear Upsurge | Nuclear power investments grow by 50% to reach USD 75 billion. |
| India’s Energy Outlook | Clean energy investment rises from USD 13B (2015) to USD 37B (2025); Fossil fuels from USD 41B to USD 49B. Grid/storage investments declined from USD 31B to USD 25B. |
| China Dominates | China to account for 25%+ of total global energy investments in 2025. |
| Africa’s Disparity | Despite 20% of global population, Africa gets only 2% of clean energy investments. |
| Fossil Fuel Trends | Oil investment dips 6%, LNG investments rising in US, Qatar, Canada. China adds 100 GW coal power. |
| Grid Gap Concern | Generation investments at USD 1 trillion, but grid at USD 400 billion. Cost doubling fuels this gap. |
INTERNATIONAL ENERGY AGENCY (IEA) – AT A GLANCE
| Category | Details |
|---|---|
| About | Paris-based intergovernmental organization established in 1974 by OECD countries in response to the 1973 oil crisis. |
| Role | Acts as a global energy policy advisor, offering data, analysis, and recommendations to promote affordable, secure, and sustainable energy. |
| Focus Areas | 1. Energy Security 2. Economic Development 3. Environmental Awareness 4. Global Engagement |
| Membership | – 32 Member countries (All must be OECD members) – 13 Association countries including India – 4 Candidate countries: Chile, Colombia, Israel, Costa Rica |
| Eligibility | To become a full member, a country must be part of the OECD. |
| Key Reports | – World Energy Outlook Report – India Energy Outlook Report – World Energy Investment Report |
IN A NUTSHELL (Mnemonic: SING-CFG)
SING-CFG — Solar, India, Nuclear, Grid, China, Fossil, Gap
This code helps remember:
Solar boom, India’s rise, Nuclear boost, Grid lag, China’s lead, Fossil shifts, Grid-funding gap.
VISUAL AID: ENERGY INVESTMENT FLOW (2025)
Total Energy Investment: $3.3T
|
-------------------------------
| |
Clean Energy ($2.2T) Fossil Fuels ($1.1T)
| |
|- Solar: $450B |- Oil ↓ 6%
|- Battery: $65B+ |- LNG ↑ (US, Qatar, Canada)
|- Nuclear: $75B |- Coal ↑ (China 100 GW)
PRELIMS PRACTICE MCQs
- Which of the following countries will account for over 25% of total global energy investments in 2025?
A. USA
B. China
C. India
D. Germany - What is the approximate investment in solar power globally as per the World Energy Investment Report 2025?
A. USD 200 billion
B. USD 350 billion
C. USD 450 billion
D. USD 550 billion - Which of the following pairs is correctly matched?
A. Battery storage – USD 25 billion
B. India fossil fuel investment in 2025 – USD 37 billion
C. IEA established in – 1974
D. LNG investment falling – 2025
MAINS PRACTICE QUESTIONS
- Discuss the emerging global trends in energy investment and their implications for sustainable development. (GS3 – Environment)
- Evaluate India’s position in clean energy investment in the context of the World Energy Investment Report 2025. (GS3 – Energy & Infrastructure)
PRELIMS ANSWERS & EXPLANATIONS
| Ques | Ans | Explanation |
|---|---|---|
| 1 | B | China will account for more than 25% of global energy investments in 2025. |
| 2 | C | Solar energy investment globally is projected at USD 450 billion. |
| 3 | C | IEA was established in 1974 post the 1973 oil crisis. Other options are incorrect. |
