Along with the growth of renewable energy, global infrastructure investment continues to grow. According to the International Energy Agency (IEA), as of 2024, the world invests almost twice as much in clean energy as it does in fossil fuels.
Global energy investment is set to exceed USD 3 trillion for the first time in 2024, with USD 2 trillion going to clean energy technologies and infrastructure. Since 2020, investment in clean energy has accelerated, and spending on renewable power, grid resiliency and energy storage is higher than total spending on oil, gas and coal. This global infrastructure investment supports research and development, which in turn drives more efficient and cost-effective technologies.
Digitalization has played a key role in the growth of renewable energy. The implementation of digital technologies has helped power systems become more efficient and flexible. Digitalization enables grid operators to manage data and efficiently coordinate among all components in the systems.
While infrastructure investments are helping renewable energy grow at a rapid pace, more funding may be needed to support the growth of renewables. There is a significant funding gap between the investment and actual funds available. The world is facing a $15 trillion infrastructure gap by 2040. The infrastructure spending gap varies widely among countries around the world with China and India at the top. Along with this funding gap, grid operators face challenges protecting the infrastructure from extreme weather environments. The infrastructure must be resilient enough to handle climate change and extreme weather, often adding to the cost and complexity of the projects.
To support more renewable energy, utility companies and grid authorities are investing in upgrading and maintaining their infrastructure. While the grid still functions well, much of the equipment deployed in grid applications is decades old. These new investments in grid infrastructure set the foundation for a sustainable, adaptable grid that can meet future energy demands and challenges.
Grid modernization is the process of enhancing the electricity grid, making it more resilient and efficient. As technology continues to advance, grid modernization is crucial to minimizing power outages and restoring services rapidly in the event of an outage. Grid modernization also supports a low-carbon energy system. As renewable sources of energy grow more prevalent, grids must adapt to carry electricity longer distances from remote renewable power installations to homes and businesses.
At nVent, we support our renewable energy customers with products that connect and protect their most critical applications – even installations in the most remote areas and facing the harshest weather elements. The shifts towards wind, solar and other renewable energy sources are changing our power generation infrastructure—with that shift come new systems that need to be connected and protected. nVent solutions include durable enclosures for sensitive equipment and controls, power connections and surge protectors for electrical equipment, heat tracing technology for energy efficient freeze protection and more. Our solutions are energy efficient, help generate power with smaller footprints, lead to cost-savings, and can be implemented safely and quickly. nVent's comprehensive portfolio makes us a key player in the growth of renewables with global infrastructure investments.