While no single innovation is guaranteed to match the historic rise of solar panels and batteries, several emerging fields are currently attracting the massive financial backing needed to reshape energy markets. According to the authors of the newly released report, investors are increasingly betting on a mix of technologies—including hydrogen electrolysers, small nuclear reactors, and geothermal energy—that show the same early growth patterns seen during previous clean energy breakthroughs.
The report states that “the past couple of years have seen a steep increase of venture capital flows into six sectors: electrolysers for hydrogen production, geothermal, advanced heating and cooling, small modular nuclear reactors, hydrogen-based fuels and grid technologies.” It further notes that “the pattern is strikingly familiar: the same ramp-up in venture capital preceded the solar and battery booms.”
Essentially, the next wave of energy transformation is likely to be driven by a group of diverse technologies rather than a single breakthrough. These sectors are becoming more attractive because they often involve components that can be mass-produced in factories, allowing them to drop in price through competition and repetition. By following the path of modular design and standardized parts, these innovations aim to move from expensive niche products to affordable, mainstream solutions for heating buildings, powering heavy industry, and making electricity grids more reliable.
The report “Energy Technology Perspectives 2026” was published by the International Energy Agency (IEA) in Paris, France. It was prepared by the IEA’s Energy Technology Policy Division under the direction of Chief Energy Technology Officer Timur Gül.
