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World Energy Investment 2025 Southeast Asia
…energy investment reached USD 47 billion, up from 30 billion in 2015. Given the challenges of accessing international capital markets, Southeast Asia’s capital markets have relied on domestic commercial lending. Commercial finance in clean energy sits above 75%, reaching over 85% in clean power, clean fuels and battery storage. Meanwhile, grid storage and transmission and distribution depends heavily on public finance, which contributes around 40% of funding. Despite wide disparities in economic development, resource endowments and market maturity, energy security is a common priority for the region. Concurrently, coal-fired power has remained a significant component of Southeast Asia’s energy…
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World Energy Investment 2025 India
…However, foreign portfolio investment in energy has declined in the past two years due to a range of macroeconomic and sectoral factors, even as the longer-term trend has been one of steady growth.India’s cost of capital for grid-scale renewable energy is one of the lowest among its emerging market and developing economy counterparts. However, it is still 80% higher than in advanced economies. Higher financing costs affect the financial viability of projects, leading to higher energy prices. Furthermore, real and perceived risks affect the attractiveness of projects to investors. One such risk is off-taker risk…
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Energy Efficiency Policy Toolkit
…case studies, offering practical insights into the successful implementation of energy efficiency policies across diverse national and sectoral contexts.The Toolkit builds on earlier IEA work to advance energy efficiency policy. In 2022, the IEA introduced Policy Packages for Energy Efficiency to help governments deploy coordinated policy approaches across these three pillars. The Energy Efficiency Policy Toolkit was subsequently developed to also integrate concrete, sector-specific guidance, along with best practices from around the world.Ten strategic principlesBased on the IEA’s analysis of best practices and the work of the Global Commission for Urgent Action on Energy Efficiency, the following…
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Buildings
…best-in-class products
Financing and market mechanisms are needed to accelerate the clean energy transition. Governments can enact policy interventions to improve access to financing and de-risk clean energy investment to enhance the attractiveness of buildings sector investment. They can also broaden the availability of market-based instruments that reduce barriers to the transition, for example via means-tested subsidies for household to retrofits or weatherisation, or installation of lower-carbon and more efficient appliances and equipment. Public competitions to stimulate innovation, such as the Buildings Upgrade Prize developed by the US Department of Energy Building Technologies Office…
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Electricity 2026 Flexibility
…spectacular growth of battery storage systems amid declining costs in various markets.Finally, markets with high shares of solar and wind are challenged by periods of overabundance, when supply has the potential to exceed demand for grid electricity, necessitating operators to implement measures to balance the system. Different options are addressed, from increasing control of output from small solar installations, to higher battery deployment, to refining price signals, including offering free electricity to customers. Demand response offers breakthrough benefits, yet its potential is largely untapped With the share of variable renewable energy (VRE) sources in electricity supply rising rapidly in…
- Executive summary
- Demand
- Supply
- Grids
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+ 4 pages
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What Next for the Global Car Industry
…car manufacturers, who are forced navigate a vehicle technology transition that is moving at different speeds in different markets.At the same time, growth in car sales has shifted to emerging economies including China since the turn of the century, with around half of global sales now in these regions. Production has also grown unevenly in different regions, especially since the pandemic. China’s car output reached a record 27 million in 2024, when it also became the world’s largest car exporter.This IEA Special Report, released as part of the IEA’s Energy Technology Perspectives (ETP) series, aims…
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Energy Technology Perspectives 2026 Energy technology manufacturing and trade
…offset around half of the estimated increase in average costs across imports and domestic production. In other major importing regions, average costs of batteries are estimated to have fallen due to lower global commodity prices. The manufacturing project pipeline has contracted across most clean energy technologies since 2024. The capacity of announced projects that have been completed or cancelled since the last review exceeds that of newly announced projects. This reflects well-supplied markets for several clean energy technologies, notably for solar PV and batteries, and uncertainty about the pace of future deployment. Industry margins have tightened across the board…
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Heat Pumps
…the central technology in the global transition to secure and sustainable heating. The Future of Heat Pumps, a special report in the IEA’s World Energy Outlook series, provides an outlook for heat pumps, identifying key opportunities to accelerate their deployment. It also highlights the major barriers and policy solutions, and explores the implications of an accelerated uptake of heat pumps for energy security, consumers’ energy bills, employment and efforts to tackle climate change.
Around 10% of space heating needs globally were met by heat pumps in 2021, but the pace of installation is growing rapidly with sales at record…
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Policy Toolbox for Industrial Decarbonisation
The Policy Toolbox for Industrial Decarbonisation is a repository of policy instruments available to assist governments as they design, develop and implement their strategies for industrial decarbonisation. This work, undertaken as part of the Climate Club's Work Programme, builds on the policy toolbox outlined in IEA’s 2022 Achieving Net Zero Heavy Industry Sectors in G7 Members report, with the addition of further details on the instruments and considerations for implementation.A robust industrial decarbonisation policy strategy is likely to include multiple different instruments, as governments choose the instruments that are most suited to their individual circumstances and objectives…
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Gaining an Edge Unlocking the potential of energy efficiency
…such wide disparities highlight the potential for many firms to reduce energy expenditures through improved energy efficiency. In IEA countries, if all firms matched the energy consumption of the best performers in their subsectors, energy costs could be reduced by up to an estimated USD 600 billion The potential for energy savings varies by sector, subsector and facility. From process optimisation to capital upgrades, industrial facilities can achieve significant energy savings across a range of investments. Firms that implement a culture of energy management (an approach explored in section 2.2) can uncover average savings of between 5% and 11…
