Where $3.4 Trillion in Global Energy Investment Is Going in 2026

The International Energy Agency published its World Energy Investment 2026 report last week, highlighting the growing investments in electrification around the world.

Global energy investment is on track to reach $3.4 trillion in 2026, up roughly 5% year-over-year. Electricity-related spending will make up nearly 60% of all investments, including end-use. 

The world is electrifying: Spending related to electricity now accounts for ~60% of global energy spending, with $1.6 trillion projected for electricity supply and infrastructure in 2026. Grid spending is set to increase by 20%, hitting roughly $550 billion, with an additional $100 billion on battery energy storage.

Within the $665 billion renewables’ envelope, over half goes is going to solar PV, equivalent to ~$1 billion per day.

Oil is down, but gas and coal are up: Despite elevated oil prices, investment in oil is expected to fall for a third consecutive year in 2026, dropping below $500 billion. Uncertainty about the how long prices will be elevated from the Iran war, extended project lead times and supply chain issues are limiting spending outside the Middle East.

Investments into natural gas are projected to increase to $330 billion, the highest level in a decade, driven by a wave of new LNG export projects, particularly in the US and Qatar. Meanwhile, coal investment is set to rise to $180 billion in 2026, the highest level since 2012, with China accounting for nearly 70% of global coal spending.

A new energy security

Grid investment is nearly equal to all renewables spending.

Why that matters: Fatih Birol, Executive Director of the International Energy Agency expects spending changes as a result of the Iran war. “We are experiencing the greatest energy security crisis the world has ever faced, and I believe this will change investment strategies worldwide, much like the significant changes the energy sector underwent following the oil shocks of the 1970s,” said Birol.

Read the full report: World Energy Investment 2026