Cleantech investments to reach $670 billion.
LONDON, NEW
YORK, and SINGAPORE,
Jan. 13,
2025 /PRNewswire/ -- S&P Global Commodity
Insights, the leading independent provider of information,
analysis, data, and benchmark prices for the commodities, energy,
and energy transition markets, has released its latest report on
the pivotal trends in clean energy technology for 2025.
"S&P Global Commodity Insights forecasts that cleantech
energy supply investments, including renewable power generation,
green hydrogen production, and carbon capture and storage (CCS),
will reach $670 billion in 2025,
marking the first time these investments will outpace projected
upstream oil and gas spending. Solar PV is expected to represent
half of all cleantech investments and two-thirds of installed
megawatts," said Edurne Zoco,
Executive Director, Clean Energy Technology, S&P Global
Commodity Insights.
"The new year 2025 is not only bringing to the clean energy
sector significant transformations that are reshaping energy
production and consumption, but it promises to be pivotal for the
clean energy sector, with significant advancements in corporate
clean energy procurement and the integration of AI in energy
management," said Eduard Sala de
Vedruna, Head of Research, Energy Transition, Sustainability
& Services, S&P Global Commodity Insights.
The S&P Global Commodity Insights report: Top Cleantech
Trends for 2025, underscores the growing dominance of renewable
technologies like solar PV, but also addresses the challenges and
opportunities within the evolving clean energy sector.
The top trends identified in the report include:
Clean Energy Investment Takes Center Stage
In 2025, cleantech energy supply spending is projected to reach
$670 billion, surpassing upstream oil
and gas investments for the first time. This shift underscores the
growing dominance of renewable technologies, with solar PV expected
to represent half of all cleantech investments and two-thirds of
installed megawatts. However, despite this significant financial
commitment, the overall investment levels remain insufficient to
meet urgent climate goals, particularly the target of tripling
renewable capacity by 2030. Capital efficiency varies by region,
with China projected to add nearly
twice as many gigawatts per dollar spent compared to the United States.
Tensions in Cleantech Supply Chains
The global cleantech landscape is shaped by an oversupply of
equipment from China, particularly
affecting the solar, wind, and battery sectors. Price declines may
stabilize in 2025, but competition from Chinese manufacturers is
expected to keep prices low, fundamentally altering industry
pricing dynamics. A slowing domestic economy in China complicates the maintenance of its
expansive supply chain, prompting efforts to control manufacturing
growth and raise barriers for new entrants. Projections indicate
that China's market share in PV
module production will decline to 65% and battery cell
manufacturing to 61% by 2030.
Storage Transforms the Power Markets
Battery energy storage is becoming essential for enhancing project
economics and mitigating low wholesale electricity prices in
regions with high renewable energy penetration. Despite reductions
in solar PV costs, the decrease in capital expenditures has not
translated into robust project development, largely due to low
power purchase agreement expectations. The phenomenon of
cannibalization, where excessive midday energy production drives
prices down to negligible levels, further discourages project
development in mature markets. To remain competitive, solar
projects must integrate battery energy storage solutions, enabling
developers to navigate price fluctuations and improve the economic
viability of renewable investments.
AI Revolutionizes Clean Energy Technology
A recent report from S&P Global Commodity Insights highlights
the growing influence of artificial intelligence (AI) in the
cleantech sector, particularly in renewable generation forecasting
and grid planning. As intermittent renewable energy sources become
more prevalent, the need for accurate forecasts has intensified.
AI-powered trading applications are emerging as critical tools to
mitigate risks associated with discrepancies—potentially up to
700%—between forecasted and actual energy generation, thereby
enhancing energy management and facilitating the integration of
renewables into the grid. While AI has great potential to transform
the clean energy sector, it also presents a range of risks that
will require careful management like cybersecurity breaches,
network compromises, anomalous behaviors, and unlawful or unethical
practices, among others.
Datacenters Drive Clean Energy Procurement
Datacenters are expected to significantly increase their role in
corporate clean energy procurement, with expectations to source
approximately 300 TWh of clean power annually by 2030. Currently,
datacenters account for around 200 TWh, or 35%, of the global
corporate clean energy procurement, a figure projected to rise
dramatically over the next five years. North American datacenters
are leading this transition, anticipated to represent approximately
60% of the global increase in clean energy procurement by 2030.
The Quest for Deeper Decarbonization
Ammonia is emerging as a key player in low-carbon hydrogen
production, contributing significantly to both electrolytic and
fossil fuel projects with CCS. In 2025, the CCUS sector is expected
to secure approximately 70 million metric tons per year of CO2
capture capacity, bolstered by recent announcements of carbon
management strategies that enhance clarity for CCUS projects.
Despite the high costs associated with engineered carbon dioxide
removal (CDR) technologies, the last three years have witnessed a
surge in CDR offtake removal agreements, demonstrating increasing
corporate interest and enhanced government policy support.
To access charts, please click here: Investment Trends in
Clean Energy Technology
For more information on energy transition topics,
visit: Energy Transition Service | S&P Global Commodity
Insights (spglobal.com)
Media Contacts:
Americas: Kathleen Tanzy + 1
917-331-4607, kathleen.tanzy@spglobal.com
EMEA: Paul Sandell + 44 (0)7816 180039, paul.sandell@spglobal.com
Asia: Melissa Tan
+ 65-6597-6241, melissa.tan@spglobal.com
About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of global
energy and commodity markets enables our customers to make
decisions with conviction and create long-term, sustainable
value.
We're a trusted connector that brings together thought leaders,
market participants, governments, and regulators and we create
solutions that lead to progress. Vital to navigating commodity
markets, our coverage includes oil and gas, power, chemicals,
metals, agriculture, shipping and energy transition.
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Global (NYSE: SPGI). S&P Global is the world's foremost
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solutions in the global capital, commodity and automotive markets.
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