The world’s energy innovation landscape is entering a new phase shaped by energy security, industrial competitiveness and infrastructure resilience, according to the latest state of energy innovation report published by the International Energy Agency (IEA).
Around one in 10 patents worldwide now relate to energy, reflecting the growing importance of electrification and power system technologies. The report identifies more than 150 innovation highlights during the year including solid-state air conditioning, perovskite solar cells, sodium-ion batteries and next-generation geothermal systems. These advances contributed to 50 upgrades in technology readiness levels among emerging energy technologies tracked by the IEA.
“Countries that sustain investment in research, demonstration and early deployment will be best positioned to lead the next generation of energy technologies,” said Fatih Birol, IEA Executive Director.
The report also underscores the long-term impact of early public investment in innovation. According to the agency, initial government funding played a key role 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, highlighting its expanding role in electricity systems and national energy security. Data in the report indicates that batteries accounted for 40% of all energy patenting in 2023 – a share expected to increase further based on preliminary data for 2024 and 2025.
In solar innovation, the IEA noted that patenting activity has shifted towards perovskite solar cells, which now account for more than 70% of solar cell patents by material.
The report also points to changing investment dynamics. Higher interest rates, macroeconomic uncertainty and strong competition from artificial intelligence (AI) ventures have weighed on energy capital flows. Venture capital funding directed to AI rose to almost 30% of global investment in 2025 while energy’s share declined.
Despite these pressures, new growth areas are emerging. The IEA said funding for fusion, nuclear fission, critical minerals and low-emissions industry has expanded sharply since 2021, offsetting much of the decline in electric mobility investment.
While priorities continue to shift, the agency maintains that sustained and strategic support for energy innovation remains essential. As electricity systems expand and become more complex, the report concludes that innovation will remain central to improving system flexibility, resilience and long-term energy security.
