As the world shifts towards NetZero targets, renewable energy is set to overtake coal as the leading source of power in 2025. With the results of the 2025 election casting uncertainty on the future of renewables in the US, the new administration pledges to keep oil and gas at the forefront of energy policy.
However, the demand for energy driven by the growth of artificial intelligence (AI) means that sustainable energy sources—wind, solar, hydrogen and nuclear—will continue to play a significant role in the US energy mix into 2025 and beyond.
Global Offshore and Onshore Wind
Offshore and onshore wind have been the driving forces of renewable energy for the last few decades. In 2024, global wind capacity additions reached approximately 125 GW, contributing significantly to the renewable energy landscape. This growth is expected to continue in 2025, with technological advancements and policy support bolstering both offshore and onshore wind projects worldwide.
Battery Storage
The capabilities of battery storage have been front and centre in recent years. As renewable energy usage soars, there is an increasing need for energy storage to combat the intermittent nature of green energy sources. In 2024, grid storage installations nearly doubled to approximately 170GWh, enhancing grid reliability and facilitating the integration of renewables. This trend is set to continue in 2025, with further investments and technological improvements in battery storage systems.
AI Technology
The last two years have been defined by the development of AI in all areas of work and life. The dawn of what has been called the 'AI revolution' has not bypassed the renewable energy industry. AI is increasingly being utilised to optimise energy production, enhance grid management, and improve energy efficiency. In the US, the growing demand for AI-driven data centres is contributing to rising power consumption, underscoring the need for sustainable energy solutions.
Nuclear
Although technically renewable energy, the potential environmental concerns and costs of nuclear energy make it a contentious option for some. Nonetheless, nuclear power is set for a record-breaking year in 2025, with several countries investing in new reactors to provide stable, low-carbon electricity. This includes advancements in small modular reactors (SMRs), which offer the promise of safer and more flexible nuclear power generation.
Hydrogen
Hydrogen is emerging as a versatile energy carrier with the potential to decarbonise sectors that are challenging to electrify, such as heavy industry and long-haul transport. In 2025, we anticipate significant developments in green hydrogen production, driven by declining renewable energy costs and increased policy support.
What's Next?
2025 is set to be a critical year for the development of renewable energy. With global investment in clean technologies reaching unprecedented levels, the continued growth of wind and solar capacities, advancements in battery storage, and the integration of AI, the renewable energy sector is poised to make significant strides toward a sustainable future. However, challenges remain, including policy uncertainties and the need for substantial infrastructure development. Stakeholders must collaborate to navigate these challenges and capitalise on the opportunities presented by the evolving energy landscape.
