Total energy investment worldwide in 2016 was just over $1.7 trillion, accounting for 2.2 percent of global gross domestic product (GDP), according to the International Energy Agency’s annual »World Energy Investment 2017«. Investment was down by 12 percent compared to IEA’s revised 2015 energy investment estimate of $1.9 trillion,

For the first time, spending on the electricity sector around the world exceeded the combined spending on oil, gas and coal supply. The share of clean-energy spending reached 43 percent of total supply investment, a record high.

China, the world’s largest energy investor, saw a 25 percent decline in coal-fired power investment last year and is increasingly driven by clean electricity generation and networks, as well as energy efficiency investment. The United States saw a sharp decline in oil and gas investment, and accounted for 16 percent of global spending. India was the fastest-growing major energy investment market, with spending up 7 percent thanks to a strong government push to modernize and expand the power sector.

Global electricity investment was nearly flat at $718 billion. Investment in renewable-based power capacity, the largest area of electricity spending, fell 3 percent to $297 billion. While renewable investment is also 3 percent lower compared with five years ago, it will generate 35 percent more power thanks to cost declines and technology improvements in solar PV and wind.

The IEA report also found that investment in clean electricity generation was not keeping pace with demand growth. Growth in new wind and solar PV generation growth »is almost entirely offset by a slowdown in final investment decisions for new nuclear and hydropower expected in the coming years.«