Solar, Wind, and Beyond - The Trends in Clean Energy in 2025
Read the latest trends on renewable energy, breakthrough technologies, and global policies shaping a sustainable future in 2025.
2024 has been a remarkable year for clean energy. Solar tech is breaking new ground with perovskite-silicon cells and quantum dots. India is ramping up its solar manufacturing.
Hydropower and offshore wind are growing fast. Electric vehicles and energy storage are making huge strides. Bioenergy is powering economies, and green hydrogen is picking up pace globally. AI is helping optimize energy systems like never before.
Looking ahead to 2025, we’re in for even bigger advances—from faster EV charging to smarter grids and more efficient renewables.
But, is the future for sustainable clean energy bright? Let's take a look.
Solar Power
Solar tech looks promising in 2025. SolarPower Europe predicts global solar to more than double to 2.3 TW in 2025.
Technologies like Multi-junction perovskite-silicon tandem cells could hit 31.6% efficiency. Their market is set to hit £2.78 billion by 2025.
Quantum dot technology comes out as a new frontier in solar technology. Theoretically, this can convert 40% of sunlight into energy contrasting the current real-life result of 18.1%. These breakthroughs will make solar panels more efficient and versatile.
Scientists at Oxford University created a one-micron-thin material with traditional solar panel efficiency at 27%. This initiative will lead to solar panels seamlessly built into windows or walls. Adding to them, Floating Solar PV and agrivoltaics could also be the game changers in 2025.
Scientists have created advanced light-harvesting systems that mimic photosynthesis, boosting energy capture. One standout is the ultra-rapid photon transport system (URPB), which hits an impressive 38% efficiency. This is a huge leap compared to traditional organic dyes, which usually only manage 1-3% efficiency.
India is expanding its solar manufacturing. Reliance is all set to commission its first solar PV tranche by Financial Year 2025. They aim to scale this up to 20GW by calendar year 2026. Catching up with it is the Adani Group. Their objective is to expand their manufacturing solar capacity to 10 GW by 2027.
Waaree Energies has also announced trial production at its 5.4 GW solar manufacturing facility in Chikhli, Gujarat.
“The commencement of trial production at our solar cell manufacturing facility is indeed an achievement for us and a testament to Indiarsquos renewable energy aspirations Our drive for backward integration is aligned with the nation's goal of reducing dependence on imports thereby creating a robust self-reliant solar supply chain”, Waaree Energies Director and CEO Amit Paithankar said.
With tax rebates, reimposition of ALMM; there is expected price increase but only time will tell how it goes for Indian solar manufacturers.
With the Indian govt. hoping to take solar energy to households with the implementation of PM Surya Ghar Muft Bijli Yojana. The objective is to touch 20 lakhs solar rooftop installations in Indian households by October 2025 and 1 crore by 2027. The scheme also comes with subsidies based on average monthly electricity consumption. Solar energy will become more viable and sustainable by 2025.
EVs
The EV industry grew exponentially in India with 1.8 million units in sales by Nov. 2024. This accounted for a 45% year on year growth. 2025 will also see a major advancement in terms of technology and implementation. Government initiatives like Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) and the Production Linked Incentive ( PLI) scheme are driving EV adoption. These programs are boosting domestic battery production.
“Segments like Vehicle-as-a-Service (VaaS) and Battery-as-a-Service (BaaS) made significant progress in 2024. Emerging markets for EV resale and battery recycling will gain traction in 2025. Traditional investors are showing increased interest, focusing on proven models with larger investments.”, said Ashish Bagadia, Corporate Finance Partner, BDO India.
Solid-state batteries that offer 2- times the energy density of lithium-ion batteries will be seen as the driving force in scaling up EVs. They provide longer ranges, up to 800 km per charge. These batteries also improve safety.
Toyota’s solid-state battery prototypes should be in production by 2026. They will cut charging time by 50%.
By 2025, 60% of new EV models are predicted to have ultra-fast charging. These systems will offer a 300 km range in just 10 minutes. This is going to address one of EVs' biggest challenges—long charging times.
Hydropower
The global Hydropower market is supposed to hit 290.38 Billion USD. According to IEA’s Net Zero by 2050, A Roadmap for the Global Energy Sector estimates that by 2025 hydropower generation will grow by at least 9.5%.
Asia leads with expansions in Nigeria, Colombia, and Laos when it comes to energy generation from water. Combining wind, solar, and hydropower looks like a good trend. This mix will offer sustainable and cost-effective energy.
India is backing hydropower with supportive policies. The Indian government is prioritizing hydropower by including projects over 25 MW as renewable energy under the Hydropower Purchase Obligation (HPO). Measures like extending project lifespans, easing debt repayment, and providing budgetary support for infrastructure aim to boost viability and growth.
New 2023 guidelines for pumped storage projects (PSPs) offer incentives like tax reimbursements, relaxed land rules, and Inter State Transmission System (ISTS) charge waivers to support grid stability and peak power needs. These steps underline India’s commitment to expanding hydropower’s role in its renewable energy goals.
OffShore Wind
Global Offshore wind capacity is expected to double from 25 gigawatts in 2020 to 61 gigawatts by 2025. This will power around 6.7 billion LEDs globally. By 2040, capacity could increase 15-fold. This growth will attract an estimated $1 trillion in investment. Lower costs, supportive policies, and innovations like larger turbines and floating foundations are key factors in driving this change.
In terms of technology, Next-gen turbines, like GE’s 13MW Haliade-X and Mingyang Power's 18-22MW models, will help improve efficiency. Smart grid tech and AI will optimize wind farm operations. They will also improve efficiency and help in lowering costs.
Offshore wind progress in India has been slow. Prices continue to remain high. Offshore wind faces competition from cheaper solar and onshore wind. The initial 5 GW target for 2025 seems unlikely. India now aims for 30 GW by 2030.
“When we talk about offshore wind power it means installing windmills in the sea which requires development and upgradation of ports and transmission infrastructure Along with this work on geothermal power is also underway though it is at the primary stage Joshi said A revolution is taking place in the field of solar energy and India is becoming the world leader in renewable energy”, said Union Minister of New and Renewable Energy Prahlad Joshi.
Despite this, progress is picking up. Viability Gap Funding has been introduced. SECI has approved a 500 MW offshore wind project tender in Gujarat. This signals movement in the sector. But will any of these come to fruition, it can only be hoped.
LNG
India's LNG import bill rose 17% to $8.9 billion in the first seven months of 2024. This was driven by higher consumption in power and city gas sectors.
India's LNG imports will rise by 4%-10% in 2025. This is driven by strong domestic consumption, economic growth, and policy support. Despite volatile international fuel prices, imports were 22.6 million mt/year in 2023. India aims for a 15% share of natural gas in its energy mix by 2030 with a current share of 6%-7%.
Offshore gas production and expanding pipeline infrastructure are going to support this growth.
Global LNG supply is also expected to grow significantly. The projected supply is 248 million tonnes per annum (mtpa) by 2028. The U.S. and Qatar are going to lead this growth.
Bio Energy
Modern bioenergy is the largest source of renewable energy, making up 55% of it. It contributes over 6% of the world's total energy supply. To reach Net Zero Emissions by 2050, bioenergy use must grow 8% annually from 2023 to 2030. This is double the growth rate of 4% from 2010 to 2023.
The growth must be sustainable, with minimal negative social and environmental impacts.
India is advancing in bioenergy. Compressed biogas blending will start at 1% in 2025-2026, rising to 5% by 2028-2029. This policy is expected to increase biogas use by 90% by 2030. Second-generation biofuels, made from non-food crops and waste, will make up 27% of the biofuels market by 2025.
The Indian government aims to achieve 20% ethanol blending by 2025. Ethanol production must reach 1,700 crore liters in order to achieve the goal by 2030. In order to achieve, we need to look beyond solar or hydropower, and focus on other factors as well.
Energy Storage Solutions
Energy storage solutions are evolving quickly and will see a lot of changes in 2025. Technological advancements like Silicon Carbide (SiC) inverters offer faster switching speeds. They reduce switching losses and improve efficiency. DC/AC inverters will exceed 99% efficiency. This enhances the performance of battery energy storage systems (BESS).
High energy density remains a challenge as battery cells advance. Innovations in thermal management are key for safety. New safety measures, like UL-9540A standards, ensure longevity and reliability. Non-lithium technologies like flow batteries, solid-state batteries, and zinc-based solutions are emerging. These offer long-duration storage to improve grid resiliency.
AI and software optimization are transforming energy storage management. By 2025, deep learning and AI will improve system efficiency. They will enhance predictive maintenance and grid management. These advancements will help systems anticipate grid demands and adjust performance.
The renewable energy industry faces price pressures, with costs dropping by 2-3%. The Inflation Reduction Act (IRA) has spurred investment. However, concerns about tariffs remain. Developers must adopt cost-cutting strategies and secure funding to manage risks.
Notable players like Nissan, Renault, and Mitsubishi are investing €23 billion in electric vehicles. They are going to focus on solid-state batteries (SSB) that charge faster than lithium-ion batteries.
The Viability Gap Funding (VGF) Scheme aims to add a capacity of 13,000 MWh for the development of Battery Energy Storage Systems (BESS).
Gentari Renewables India is expanding with a $1.5 billion investment in green ammonia. It has a joint venture with ReNew Energy Global Plc to develop 5 GW capacity in energy storage.
Jindal India Renewable Energy is entering the BESS sector. It plans to set up a 1 GWh assembly line by 2025. The company will use Lithium Iron Phosphate (LFP) technology. With the goal to support grid stability and renewable integration. This move will contribute to India's growing renewable energy market.
Punit Gupta, Director of Jindal India Renewable Energy, said, “We are proud to step in and meet the growing demand for India’s energy storage solutions. By investing in BESS, we are not only expanding our portfolio but also contributing to grid stability and renewable integration.”
Energy storage solutions are improving. In 2025, they will become more efficient and safer. Technological advances will drive this progress. These improvements will allow greater integration of renewable energy into global grids.
AI
In 2025, AI applications in the energy sector are expected to expand significantly. Hitachi Energy has launched Nostradamus AI, a forecasting tool for the energy sector. It provides accurate energy forecasts to help utilities, operators, and producers. As data from power grids grows, AI and machine learning are key to improving operations and forecasting.
AI is also transforming logistics and procurement. AI leverages predictive analytics for demand forecasting, inventory management, and logistics planning. It helps businesses adjust operations in real-time based on market trends.
AI will also automate procurement processes. Further, it optimizes supply chains by analyzing supplier performance and market conditions. IoT integration is going to boost AI’s capabilities. It will further enable monitoring of environmental factors, such as emissions. This is going to help companies meet ESG requirements.
Green Hydrogen
India’s Green Hydrogen Mission reached a key milestone in 2024. Ten companies were awarded tenders worth 4.12 lakh tonnes per annum (LTPA) capacity for green hydrogen production. This was backed by a subsidy of Rs 3055 crore.
In 2025, the government plans to award tenders worth 7.8 LTPA more. They will also introduce standards for hydrogen production and storage. It will be applicable in sectors like aviation and railways.
“India is ahead in the field of green hydrogen compared to other countries We have floated a tender for green ammonia which is the worlds biggest project.” added Union Minister of New and Renewable Energy Prahlad Joshi
Meanwhile, the Solar Energy Corporation of India (SECI) aims to establish green hydrogen hubs. At least two hubs will produce 100,000 metric tonnes per annum by 2025-26. These hubs will be supported by INR 200 crore.
Globally, green hydrogen is poised for significant growth. By 2025, McKinsey predicts most new hydrogen production will be clean. Green hydrogen projects like Saudi Arabia’s Neom Helios and India’s Kakinada project are advancing. This shift is crucial for climate goals and the global energy market.
Internationally, the aviation and distillery industries are also embracing green hydrogen. American Airlines plans to integrate hydrogen-powered aircraft by 2032. Marubeni Europower is working with Suntory Global Spirits. They aim to decarbonize whisky production in Scotland using a hydrogen plant. India is developing green hydrogen infrastructure. These initiatives are key to accelerating the global hydrogen economy. They support the transition to sustainability.
Conclusion
As we look ahead to 2025, the progress in clean energy is undeniable. From innovations in solar tech and energy storage to the rise of electric vehicles and green hydrogen, the future is promising.
However, challenges remain—rising costs, energy storage limitations, and the need for continued investment in infrastructure.
As these sectors evolve, it’s crucial that we address these hurdles to fully unlock the potential of sustainable energy.
How do you see clean energy evolving in 2025?
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