Global Energy Crisis Drives Solar Investment Surge to Rp 6.514 Trillion

Global solar energy is increasingly solidifying its position as the most aggressive sector in global energy investment amid geopolitical uncertainty and the world energy crisis.

The International Energy Agency’s (IEA) World Energy Investment 2026 report, released on Thursday (28 May 2026), projects global solar power project investments in 2026 to reach $365 billion, approximately Rp 6.514 trillion (assuming an exchange rate of Rp 17,847 per US dollar).

This equates to over Rp 17.8 trillion per day.

Wind energy investments are forecast at $200 billion (around Rp 3.569 trillion), while hydropower is expected to reach $75 billion (approximately Rp 1.338 trillion).

The IEA states that around $665 billion, or Rp 11.868 trillion annually, is currently flowing into global renewable energy projects.

Although total renewable energy investment has declined compared to previous years, green energy still dominates about 70% of global power generation spending.

The IEA notes that the cost of investing in solar power plant capacity has plummeted over the past decade.

In 2015, constructing 1 gigawatt (GW) of solar capacity required around $3 billion (Rp 53.5 trillion). By 2025, average investment needs have dropped to approximately $700 million (Rp 12.49 trillion) per GW.

This cost reduction is driven by falling solar module prices and increased global production scale.

According to the IEA, without these technological cost reductions, global energy investments projected for 2026 would nearly double in cost compared to current levels.

‘Through the cost reductions of the past decade, energy investments anticipated for 2026 would have been almost twice as expensive,’ the IEA stated in its report.

The lower investment costs have caused global solar capacity to surge dramatically. The report shows annual solar capacity additions have increased almost tenfold since 2015.