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Clean Energy Boom: Driving the Renewables Race in 2025
Published 1 year, 3 months ago
Description
The clean energy industry is poised for significant growth and transformation in 2025, driven by increasing demand, technological advancements, and supportive policies. Here's a current state analysis of the industry:
Recent market movements indicate a strong momentum for clean energy. The International Energy Agency (IEA) predicts that more than a third of the world's electricity will come from renewables by 2025[3]. In 2023, over 500 gigawatts (GW) of renewables generation capacity were added, a new record[2]. The Deloitte 2025 Renewable Energy Industry Outlook notes that the demand for clean energy is outpacing supply, creating a "renewables race" to fill the resource gap[1].
The industry is also witnessing significant deals and partnerships. For instance, SLB is developing an integrated direct lithium-extraction solution, and cross-sector partnerships are being leveraged to develop advanced technologies for producing clean hydrogen[4]. Chevron and Marathon Petroleum Corporation have formed partnerships with agricultural firms to secure a consistent feedstock supply and strengthen their biofuel supply chains[4].
Emerging competitors are also making their mark. China, a clean energy powerhouse, accounted for around half of wind and solar additions and well over half of global EV sales in 2022[2]. The country's economy is reaching an inflection point, with lower future demand expected in energy-intensive sectors like cement and steel[2].
New product launches and technological advancements are driving growth in the industry. Solar PV installations were up 35% year-on-year in 2024, wind was up 5%, energy storage installations rose 76%, and EV sales gained 26%[5]. BloombergNEF estimates that 16 million metric tons of annual clean hydrogen production capacity will come online by 2030, and around 200 million metric tons per annum of CCS capacity will be installed by then[5].
Regulatory changes are also playing a crucial role in shaping the industry. The Inflation Reduction Act in the United States has accelerated innovation in renewable technologies, and state and local policy drivers may become more prominent in 2025[1]. The European Union has implemented a 2% sustainable aviation fuel mandate from 2025 onwards[4].
In terms of consumer behavior, there is a growing demand for clean energy, driven by concerns about climate change and energy security. Residential solar attachment rates are expected to rise from 14% in 2023 to a record 25% in 2024[1]. The electric vehicle market is also growing, with BloombergNEF forecasting that EVs will account for one-third of new vehicles sold in the US by 2030[5].
Industry leaders are responding to current challenges by investing in new technologies, diversifying into renewable energy, and forming partnerships to accelerate the commercialization of advanced technologies. For instance, utilities are seeking to introduce new clean transition tariffs for commercial and industrial customers to help finance the deployment of these technologies[1].
Compared to the previous reporting period, the clean energy industry is showing significant growth and momentum. The industry is expected to continue to drive innovation and deployment in 2025, despite policy uncertainty and supply chain challenges. As the world transitions to a low-carbon economy, the clean energy industry is poised to play a critical role in shaping the future of energy.
This content was created in partnership and with the help of Artificial Intelligence AI
Recent market movements indicate a strong momentum for clean energy. The International Energy Agency (IEA) predicts that more than a third of the world's electricity will come from renewables by 2025[3]. In 2023, over 500 gigawatts (GW) of renewables generation capacity were added, a new record[2]. The Deloitte 2025 Renewable Energy Industry Outlook notes that the demand for clean energy is outpacing supply, creating a "renewables race" to fill the resource gap[1].
The industry is also witnessing significant deals and partnerships. For instance, SLB is developing an integrated direct lithium-extraction solution, and cross-sector partnerships are being leveraged to develop advanced technologies for producing clean hydrogen[4]. Chevron and Marathon Petroleum Corporation have formed partnerships with agricultural firms to secure a consistent feedstock supply and strengthen their biofuel supply chains[4].
Emerging competitors are also making their mark. China, a clean energy powerhouse, accounted for around half of wind and solar additions and well over half of global EV sales in 2022[2]. The country's economy is reaching an inflection point, with lower future demand expected in energy-intensive sectors like cement and steel[2].
New product launches and technological advancements are driving growth in the industry. Solar PV installations were up 35% year-on-year in 2024, wind was up 5%, energy storage installations rose 76%, and EV sales gained 26%[5]. BloombergNEF estimates that 16 million metric tons of annual clean hydrogen production capacity will come online by 2030, and around 200 million metric tons per annum of CCS capacity will be installed by then[5].
Regulatory changes are also playing a crucial role in shaping the industry. The Inflation Reduction Act in the United States has accelerated innovation in renewable technologies, and state and local policy drivers may become more prominent in 2025[1]. The European Union has implemented a 2% sustainable aviation fuel mandate from 2025 onwards[4].
In terms of consumer behavior, there is a growing demand for clean energy, driven by concerns about climate change and energy security. Residential solar attachment rates are expected to rise from 14% in 2023 to a record 25% in 2024[1]. The electric vehicle market is also growing, with BloombergNEF forecasting that EVs will account for one-third of new vehicles sold in the US by 2030[5].
Industry leaders are responding to current challenges by investing in new technologies, diversifying into renewable energy, and forming partnerships to accelerate the commercialization of advanced technologies. For instance, utilities are seeking to introduce new clean transition tariffs for commercial and industrial customers to help finance the deployment of these technologies[1].
Compared to the previous reporting period, the clean energy industry is showing significant growth and momentum. The industry is expected to continue to drive innovation and deployment in 2025, despite policy uncertainty and supply chain challenges. As the world transitions to a low-carbon economy, the clean energy industry is poised to play a critical role in shaping the future of energy.
This content was created in partnership and with the help of Artificial Intelligence AI