The 2026 edition of the IEA’s annual World Energy Investment report projects that global energy investment will reach $3.4tr in 2026, a slight increase year-on-year. Around $2.2tr is expected to go to grids, storage, low-emissions fuels, nuclear, renewables, efficiency and electrification in 2026, while around $1.2tr is set to be invested in oil, natural gas and coal.

The report highlights growing interest among fuel-importing countries in energy sources available domestically including renewables, nuclear power and, in some cases, coal. Investment in renewable power projects is expected to total around $665bn in 2026, with $365bn going toward solar alone. While annual investment growth in renewables has moderated following several years of rapid expansion, low-emissions sources still account for more than 70 per cent of total power generation investment globally. Nuclear investment is continuing its resurgence, exceeding $80bn annually, with close to 80GW of new nuclear capacity under construction across 15 countries.

Electricity-related investment remains the dominant theme in global energy spending trends. Investment in electricity supply and infrastructure is expected to reach nearly $1.6tr in 2026 and rise to $tr when end-use electrification is included. Spending on electricity grids is projected to approach $550bn, up nearly 20 per cent year-on-year, while battery storage investment is set to exceed $100bn.

The current energy crisis, stemming from the effective closure of the Strait of Hormuz, is changing risk perceptions and bolstering moves towards greater diversification. Coming just a few years after the energy crisis centred around Russia’s invasion of Ukraine in 2022, today’s supply shock is expected to leave a lasting imprint on future investment priorities, particularly in Asia and the Middle East, where the impacts of the disruptions to shipping flows through the Strait of Hormuz have been felt most acutely.

Despite higher oil prices, oil investment is expected to decline for a third consecutive year in 2026, falling below $500bn. The report finds that uncertainty over the duration of the price spike, long project lead times, supply chain constraints and tighter offshore rig markets are limiting near-term spending responses outside the Middle East. At the same time, natural gas investment is projected to rise to $330bn, the highest level in a decade, supported by a wave of new LNG export projects, particularly in the US and Qatar.

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