International Energy Agency (IEA)’s Post

Last month, the energy sector saw the release of two significant reports that have shed new light on the investment landscape. The International Energy Agency [1] published a comprehensive overview of global energy investments, while CIC energiGUNE [2] offered an in-depth analysis of the battery industry's investment trends. These reports, released in close succession, provide invaluable insights for investors, policymakers, and industry professionals. I've taken the time to analyze both reports and synthesize their key findings, which I'll share below. However, it's worth noting that the landscape could shift dramatically in the near future due to potential oversupply issues and the current low price environment. Here are the main takeaways from these two insightful reports: ▪ Growing role of strategic investors: Automakers are becoming key investors in battery technologies. This aligns with the overall trend of increasing corporate investments in energy. ▪ Importance of financial investors: Private equity and venture capital play a significant role in financing battery technologies. This complements IEA data on the prevalence of commercial funding sources (over 75%) in global energy investments. ▪ Rising role of households: The share of household investments in energy has doubled since 2015, reaching 18%. This may contribute to increased demand for batteries in home energy storage systems. ▪ Government support: Public institutions are important investors in battery technologies. This corresponds with IEA data showing a stable share of government investments at around 37% in the global energy sector. ▪ Regional differences: In developing countries, more than half of investments come from governments and state-owned companies. ▪ Financing structure: Clean energy has a higher share of debt financing (about 50%) compared to traditional energy sectors. ▪ Investment barriers: High cost of capital remains a significant obstacle for clean energy investments in developing countries.

📊 💡 Insightful information on energy investments from the International Energy Agency (IEA). Check out their commentary via their post below. 👇 #energy #energyindustry #energylandscape #energytransition

Understanding energy investment is crucial for the future of sustainable development. In the ever-evolving energy landscape, knowing who's investing and financing is key to driving more capital towards clean energy transitions. Similar insights are vital in mining and metals. Investing in new green technologies at every stage of the value chain, be it in the energy or mining sector, is how we envision a sustainable future. #EnergyTransition #SustainableInvesting #MiningInnovation

What risks are you taking in renewable #energy⚡? As #renewableenergy has matured as an asset class investment strategies have split into two distinct approaches. These can broadly be bucketed into shorter term “build and sell” or the longer term ”buy and hold” approach where returns are delivered through income. Schroders. 🔗 Read the full article on Investment IQ: https://lnkd.in/eDVNYnFU #financialadviser #investment #investmentmanagement #finance

What risks are you taking in renewable #energy⚡? As #renewableenergy has matured as an asset class investment strategies have split into two distinct approaches. These can broadly be bucketed into shorter term “build and sell” or the longer term ”buy and hold” approach where returns are delivered through income. Schroders. 🔗 Read the full article on Investment IQ: https://lnkd.in/eDVNYnFU #financialadviser #investment #investmentmanagement #finance

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More than ever, investors are looking towards renewable energy and resources as the industrial economy continues to shift away from fossil fuels. Join Darko Kuzmanovic, Portfolio Manager for the Global Natural Resources Fund, as he gives an update on the portfolio and shares his investment outlook on what 2024 has in store for the resources sector. Register for the webinar here: https://ow.ly/PJve50QxIXQ #JHIA #JanusHenderson #GlobalNaturalResources #AUS For investment professionals only

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Solar PV Myths & Facts !!! Solar Photovoltaic (PV) technology is widely regarded as a viable and sustainable energy source. However, several myths persist that can create misconceptions about its effectiveness, cost, and overall impact. Here are some common myths & facts about Solar PV : Myth 1 : Solar Panels Don’t Work on Cloudy or Rainy Days ⛅ Fact : Solar panels can still generate electricity on cloudy or rainy days. While their efficiency is reduced compared to sunny days, they can still produce a significant amount of energy. Myth 2 : Solar PV Systems are too Expensive 💰 Fact : The cost of solar panels has decreased significantly over the past decade. Government subsides and financing options make Solar PV systems more affordable. Myth 3 : Solar Panels Require a Lot of Maintenance 🛠 Fact : Solar PV systems are relatively low-maintenance. They have no moving parts, which reduces the likelihood of mechanical failure. Routine maintenance typically involves cleaning the panels and checking perfromance. Myth 4 : Solar Panels Harm the Environment 🏞 Fact : While the manufacturing of solar panels does have some environmental impact, it is much less than that of fossil fuel energy sources. Over their lifetime, solar panels offset their production emissions many times over by providing clean energy. Myth 5 : Solar PV is Only for Warm, Sunny Climates 🌞 Fact : Solar PV systems are used effectively in a variety of climates, including regions with colder temperatures and less sunlight. For example, Ladakh is highest potenital for Solar PV generation in India. Myth 6 : Solar Energy Is Not Reliable 📉  Fact : Solar energy is one of the most reliable and predictable sources of energy. With advancements in grid management and energy storage, the integration of solar power into the energy mix is becoming increasingly seamless. Happy to share here my favourite financial teacher (FinFluencer) CA Rachana Ranade's interview with Nikhil Nahar of SolarSquare Energy on “Amazing Returns with Solar PV Energy Investment” addressing these myths, we can better appreciate the value and potential of Solar PV technology in contributing to a sustainable energy future for our generations to come. 🌏 #cleanenergy #sustainability #renewableenergy #solarenergy #netzero

We’re proud to have been recognized as the most prolific low-carbon investor within our industry in 2023 by Energy Intelligence. Energy Intelligence’s ‘Low-Carbon Investment Tracker’ report covers the low-carbon investments of 34 leading international and national oil companies. Our progress last year included two major carbon capture projects – taking our committed investment to almost 4 million tonnes per year. We’re keeping up the momentum in 2024, having increased our budget for low-carbon solutions to $23 billion to support the delivery of a just, orderly and equitable energy transition. #EnergyForLife