Markets and investment

Global energy investment totalled more than USD 1.9 trillion in 2021, with the power and end-user sectors attracting more investment than traditional fuel production

Energy markets focus on the trade and supply of electricity, gas and liquid fuels. They consist of three main elements: generation or production, transmission and distribution, and supply. Once electricity is generated or gas and oil is produced, it is sold on the wholesale market to suppliers, who sell it on to consumers and arrange for its delivery. It is distributed to homes and businesses through transmission and distribution systems. Depending on a country’s government policy, these elements of energy markets may be nationalised or privatised. Energy markets are closely regulated to ensure secure access to energy at fair prices, since energy is a necessity for sustained economic output and human welfare. Energy markets in the UK are privatised and regulated by the Office of Gas and Electricity Markets (Ofgem), which is responsible for protecting the interest of consumers by promoting fair competition. UK energy markets have recently experienced significant changes due to diversification of electricity generation through the rise of renewable energy sources, as well as the addition of many new suppliers.

Around the world, investments in the energy system are shifting, with increasing funds flowing into renewables, grid flexibility mechanisms, and low carbon transport. An appropriate policy and regulatory environment is required for continued investment towards a low carbon economy while maintaining energy security. The low carbon transition often requires the government to drive and guide private spending since investments in low carbon energy infrastructure are often capital-intensive and require long-term returns. There is growing need for new market structures to be defined and existing ones to play different roles in order to encourage low carbon investments across all sectors of energy, while also keeping the energy system stable and conventional sources flowing. Increased interconnection is also an option for moving towards more sustainable and cost-effective energy systems; integration of national energy systems through cross-border infrastructure can redefine investment agendas.

Learn more about markets and investment by reading our Energy Insights.

For the latest news and articles on energy pricing read New Energy World.

View upcoming finanace and investment consultations and policies on our Policy Milestones Calendar.

What's new?

UK budget extends energy subsidies and supports carbon capture and mini-nuclear reactors – but overlooks energy efficiency and renewables

As anticipated, the Energy Price Guarantee (EPG) has been extended for another three months, so the average household will pay no more than £2,500 a y...

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European Commission proposes EU electricity market reform

The EU has had an efficient, well-integrated electricity market for over 20 years, allowing consumers to reap the economic benefits of a single energy...

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Decarbonised power system by 2035 ‘not possible’ at current pace of delivery

A decarbonised power system is the ‘central requirement’ for achieving net zero in the UK and the prize for all modern economies, according to the lat...

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Nuclear-powered clean hydrogen facility begins production in US

Hydrogen production has begun at a 1 MW demonstration-scale, nuclear-powered clean hydrogen production facility at Constellation’s Nine Mile Point nuc...

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European gas demand sees steepest drop in recorded history

Natural gas markets worldwide continued to tighten last year despite global consumption declining by an estimated 1.6% in 2022, says the report. Deman...

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Events and training

Economics of the Oil and Gas Industry - Nigeria


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Technical guidance publications

Proceedings of the 20th World Petroleum Congress. Energy Solutions for All: Promoting Cooperation, Innovation and Investment. 4-8 December, 2011, Doha, Qatar

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Financial investment in energy efficiency

Taken from Croner's Energy Management loose-leaf manual, this 30-page module identifies a number of accountancy techniques to help energy managers qua...

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