Global energy investment is expected to rise to a record 3.4 trillion dollars this year as countries intensify efforts to strengthen energy security and diversify energy supplies, according to the International Energy Agency (IEA).
The agency said the increase is being driven by growing concerns over global energy supply disruptions and what it described as the second major energy crisis in less than five years.
Of the total projected investment, approximately 2.2 trillion dollars is expected to go into electricity-related infrastructure including power grids, energy storage, nuclear energy, wind, solar and energy efficiency projects.
The remaining 1.2 trillion dollars is expected to be invested in oil, natural gas and coal.
Despite recent crude oil price increases linked to tensions in the Middle East, the IEA projects global upstream oil investment to decline for the third consecutive year to around 500 billion dollars.
Natural gas investment, however, is expected to rise sharply to 330 billion dollars, marking the highest annual investment level in gas in a decade.
Solar energy investment is also projected to remain strong, with spending expected to reach 365 billion dollars in 2026, while total renewable power investment is estimated at 665 billion dollars.
IEA Executive Director Fatih Birol said the world is currently facing the largest energy security crisis in history, a situation he believes will fundamentally reshape global energy investment strategies.
According to him, both producer and consumer countries are increasingly diversifying trade routes and energy sources through the expansion of pipelines, supply infrastructure and domestic energy production.
The development comes amid growing global interest in alternative supply routes, including plans by ADNOC to expand the capacity of its Fujairah oil pipeline as countries seek to reduce reliance on vulnerable transit routes such as the Strait of Hormuz.