Two of the primary areas where huge sums of funds are channeled by governments and international bodies are electricity and oil and gas. However, the investment devoted to the electricity sector has superseded the funds channeled towards the development of the oil and gas industry. It was found by the International Energy Agency (IEA) that the electricity investments attracted more funds than the oil and gas sector in 2017, and this has happened second time in a row. US $715 billion was the total global amount that was dedicated to the oil and gas sector, while the electricity investments funds as high as US $715 billion in 2017. The large number of projects aimed at developing electricity grids is found to be the prime reason behind the supremacy of investments in the electricity sector.
Despite the seemingly boisterous growth of the electricity sector, the overall energy sector has witnessed a drop in investment by 2%. Furthermore, the cumulative spending on energy-efficient technologies and renewable also dropped by 3% from 2016. Besides this, investments made towards generating renewable power saw a decline of 7% in the year 2017. The IEA projects that the energy spending would further descend in the current years, and this may invite debate and discussion on international platforms.
Effect of Policies
The IEA has explained that the variation in investment in the energy sector is due to changes in the policies of national and regional territories. The researchers at IEA stated that a decline in energy spending is not a good sign, and it may hamper the progress of initiatives aimed at creating a cleaner environment.