Energy, Renewables and BESS

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The global energy industry is entering a structurally different phase in 2026: energy security, electrification, affordability, resilience and decarbonisation are converging into a single strategic agenda. Global energy investment is expected to reach approximately US$3.4 trillion in 2026, up around 5% year-on-year, with roughly US$2.2 trillion directed towards clean-energy and electricity-related systems—including renewables, grids, storage, nuclear, efficiency and electrification—compared with approximately US$1.2 trillion for oil, gas and coal. Renewable power investment alone is expected to reach about US$665 billion, including approximately US$365 billion in solar, while grid investment approaches US$550 billion and battery-storage investment exceeds US$100 billion. The fundamental market signal is therefore not the disappearance of hydrocarbons, but a reallocation of capital towards electricity, flexible generation, infrastructure and diversified energy systems.

At the same time, the transition is becoming more complex rather than linear. Global electricity demand is forecast to increase 3.6% in 2026 and 3.8% in 2027, driven by industrialisation, electrification, cooling, EVs, heat pumps and rapidly expanding data-centre capacity. Renewables are expected to overtake coal in global electricity generation in 2026, while solar PV becomes the second-largest renewable source after hydropower. Yet geopolitical disruption, including the 2026 Middle East energy crisis and disruption to LNG flows through the Strait of Hormuz, has reinforced the strategic importance of natural gas, LNG, nuclear, domestic resources and emergency energy infrastructure. The resulting market is increasingly multi-speed and multi-technology: capital is flowing simultaneously into renewables, grids, batteries and nuclear while also supporting LNG, gas-fired generation, pipelines and energy-security infrastructure.

The global energy industry is entering an Age of Electricity, but this should not be interpreted as an immediate end to hydrocarbons. Instead, the energy system is likely to become more diversified, interconnected and technology-intensive. Electricity demand will continue to outperform overall energy demand as AI, data centres, EVs, industrial electrification, cooling, heat pumps and digital infrastructure expand. Renewables and nuclear will gain share, batteries and flexible resources will become increasingly important, and grids will emerge as one of the most strategically valuable infrastructure classes.

The 2026–2035 competitive landscape will ultimately be defined by reliability + affordability + sustainability + intelligence. Companies that can secure energy resources, build resilient supply chains, obtain grid access, deploy capital efficiently, integrate AI and digital technologies, navigate complex regulation and demonstrate credible ESG performance will outperform less adaptable competitors. The market is moving from a simple “energy transition” narrative towards a broader “energy-system transformation” agenda in which power, fuels, infrastructure, technology, finance, minerals and data converge. For investors, governments and corporate leaders, the strategic imperative is clear: build resilient energy platforms today that can capture both the growth of electrification and the continuing value of diversified energy security.