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17
Apr
The IEA says the global energy innovation landscape is entering a new phase shaped by energy security, industrial competitiveness and infrastructure resilience.
The agency’s latest State of Energy Innovation report finds that energy technologies now represent multi-trillion-dollar markets, with around one in ten patents worldwide relating to energy.
The 2026 edition identifies more than 150 major innovation highlights spanning solid-state air conditioning, perovskite solar cells, fusion energy, sodium-ion batteries and next-generation geothermal systems.
The report notes that energy security was the leading driver of innovation in 2025 ahead of affordability and emissions reduction.
IEA executive director Fatih Birol said energy innovation has become a strategic priority for governments worldwide.
“Energy innovation has become a strategic priority for governments around the world,” said Birol. “With energy security and industrial competitiveness at the top of the agenda, countries that sustain investment in research, demonstration and early deployment will be best positioned to lead the next generation of energy technologies.”
The report highlights the impact of public support in enabling technologies such as floating liquefied natural gas, lithium-ion batteries and next-generation geothermal.
Energy storage has moved to the forefront of global innovation activity, with batteries accounting for 40% of all energy patenting in 2023 and the share set to rise further.
China, Korea and Japan remain major sources of lithium-ion battery patents, while perovskite solar cells now account for more than 70% of solar cell patents by material.
The IEA says comprehensive evaluations of public R&D programmes show economic benefits several times greater than their costs.
However, funding trends are shifting, with public energy R&D spending down 2% in 2025 to $55bn and corporate R&D growth slowing to 1% in 2024.
Venture capital investment in energy technology start-ups also declined for the third consecutive year to $27bn in 2025, with increased competition from artificial intelligence ventures weighing on flows.
New growth areas are emerging across fusion, nuclear fission, critical minerals, geothermal, carbon dioxide removal and low-emissions industry.
The report finds regional innovation pathways diverging, with China expanding its footprint in storage and industrial efficiency, Europe approaching record levels of public R&D intensity and the United States remaining a global VC leader.
Japan continues to specialise in batteries while advancing in perovskite solar, hydrogen-based fuels and fusion.
The IEA stresses that sustained and well-targeted public support will be essential to align innovation strategies with broader competitiveness and resilience goals.
According to the report, strategic support for energy innovation can deliver transformative economic and security benefits over decades.
The findings will be presented at the 2026 IEA Energy Innovation Forum on 18 February, held on the margins of the IEA Ministerial Meeting.
Source: reNews
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