INVESTMENT BARRIERS AND TECHNOLOGICAL INNOVATIONS IN MODERN ENERGY INFRASTRUCTURE

Objective: This literature review aims to explore the connection between investment barriers and technological innovations within modern energy infrastructure. Method: Peer-reviewed literature as well as credible reports from 2005 to 2026 was selected in Scopus, Web of Science, and Google Scholar databases on such topics as investment barriers, grid infrastructure, renewable energy, energy storage, smart grids, digitization, and predictive technologies. Results: The results show that technological innovation significantly enhances economic competitiveness, flexibility, and reliability of energy systems. Notable in this regard is the reduction in the installed cost of utility-scale battery energy storage by 93% from 2010 to 2024. In addition, 91% of new utility-scale renewable power generation added in 2024 produced electricity at a lower cost than any new fossil fuel-based technology. However, technological advancements are not enough to promote the installation of such infrastructure since high cost of financing, policy risks, grid constraints, supply chain risks, insufficient institutional capacity, and uneven access to capital are still major barriers. Novelty: Moreover, advances in digital technologies are now opening up new opportunities through the use of smart meters, predictive maintenance, digital twin, and intelligent forecasts.