As the global energy landscape evolves, financial investors and corporates are navigating the complexities of the energy transition. This transformation offers significant investment opportunities, driven by the need to enhance energy efficiency, expand renewable energy capacity, and modernize infrastructure.
The financial sustainability and investment strategies of SOEs, including national oil companies and publicly-owned utilities, are therefore crucial for the future of energy investments in emerging and developing economies and for the speed and security of energy transitions.
Over 4,000 miles away and with a population one hundred times larger, another country is making great strides in energy storage. Thanks to $250 million in concessional finance from CIF, South Africa is soon to see 100 MW of new storage capacity come online.
Energy storage technologies are also the key to lowering energy costs and integrating more renewable power into our grids, fast. If we can get this right, we can hold on to ever-rising quantities of renewable energy we are already harnessing – from our skies, our seas, and the earth itself.
Public stakeholders also tend to be more involved in financing certain power assets that are crucial for energy security strategies, especially in the case of nuclear power. End-use sectors see much higher shares of commercial financing: 75% for industry, 80% for buildings, and 85% for transport.
The growing role of households is evident in recent data. In 2023, the share of investment by households relative to total energy spending reached 29% in Japan and Korea and 27% in Europe, followed by 11% in North America.