As we enter 2025, the global energy sector stands at the edge of complete transformation. This is being made possible through developments in technology, continuously ambitious climate policies, and changing global markets converging to define the global future of energy.
To begin the year, we’ll examine key trends and developments that are expected to influence the energy landscape in 2025.
Growth in Renewables
Renewable energy will continue to be a core focus in 2025. The International Energy Agency (IEA) projects that renewables will overtake coal to become the largest source of global electricity generation, with wind and solar power supplying 35% of global electricity by 2025. Additionally, solar energy is expected to experience significant growth, and global capacities could double.
This growth will also be driven by new developments in solar photovoltaic (PV) technology, cost reductions, and policy support from governments around the world. Many countries are making considerable investments in large-scale renewable energy projects to reduce fossil fuel consumption and advance sustainability goals. For businesses, this presents a valuable opportunity to integrate renewable energy into their strategies, which can help cut emissions and operating costs.
Net Zero Roadmaps
2025 will be a pivotal year for the Net Zero transition, as more companies commit to detailed, actionable plans to slash greenhouse gas emissions. These roadmaps will focus on decarbonising supply chains and achieving ambitious climate goals by 2030 and beyond. As businesses align with these objectives, they will play a critical role in advancing global efforts to tackle climate change and drive sustainable growth.
Key steps involve renewable energy integration, electrification of industrial operations, and enhancing energy efficiency through advanced technologies. Digital tools are also being embraced by businesses that allow real-time monitoring of performance while maintaining a line of visibility to meet stakeholder expectations.
Nuclear Expansion
Nuclear power is once again on the agenda, driven by the urgent requirement for sources of secure low-carbon energy. In 2025, nuclear energy will generate more energy than ever before, with new capacity being implemented worldwide, especially in Europe, Asia, and North America. The International Energy Agency (IEA) estimates that global nuclear power generation will grow by nearly 3% annually through 2026, reaching a new all-time high this year.
Through the development and advancement of small modular reactors (SMRs), nuclear energy is fast becoming a more scalable and cost-effective solution. For regions around the world with limited access to renewable resources, nuclear power offers a reliable alternative to fossil fuels, ensuring energy security while reducing emissions. SMRs provide an efficient and flexible option, making it easier for countries to transition to low-carbon energy sources while meeting their growing energy demands.
Increased Adoption of EVs
Electric vehicles and their popularity continue to gain momentum and are set to revolutionise the transport sector. By 2025, EVs are expected to account for a substantial share of new vehicle sales, in part due to decreasing battery costs, expanded charging infrastructure, and government incentives.
This surging trend not only reduces emissions but also drives an increase in demand for electricity, further emphasising the need for a stronger and more flexible energy grid. As the shift to electric vehicles accelerates, businesses will have to consider energy storage and other management solutions in order to meet these changes effectively.
Carbon Capture Market
Carbon Capture, Utilization, and Storage (CCUS) technologies are becoming increasingly vital for industries that have historically been challenging to decarbonise (like the oil and gas sector). By 2025, the CCUS market is expected to grow significantly due to new policies and increases in investment. Approximately 200 projects are expected to reach a Final Investment Decision (FID) in 2025, collectively adding over 500 million tonnes per annum (Mtpa) of capacity (Wood Mackenzie).
CCUS captures CO2 emissions directly at the source and can either store them underground or repurpose them for industrial applications. This technology will be crucial in helping energy-intensive industries balance operational demands with their ever-increasing environmental responsibilities.
Energy Storage and Grid Stability
As renewable energy production continues to soar, so will the demand for high-value energy storage systems for grid reliability throughout 2025. We will also see solid-state batteries with higher energy density and quicker charging times gaining more traction. According to Bloomberg NEF, global energy storage installations are expected to grow by 76% in 2025, reaching 69 GW/169 GWh.
Energy storage solutions are businesses’ ticket to bank excess renewable energy for when demand spikes are high, reducing strain on the grid. At the same time, smart technologies provide greater grid flexibility and optimised energy distribution through dynamic management, improving efficiency and responsiveness.
Energy Efficiency Technology
Energy efficiency will undoubtedly be at the core of sustainability strategies in 2025. Predictive maintenance, real-time monitoring, and smart building systems are just a few of the advanced solutions being adopted by organisations to reduce waste, minimise emissions, and drive optimal energy efficiency.
These technologies not only lower costs but also enhance overall energy performance, making them crucial for companies that want to survive in a world where minimising carbon emissions is paramount.
How Powerstar Supports the Transition
Powerstar has been leading the way in sustainable energy technology, providing solutions like Voltage Optimisation and Battery Energy Storage to help businesses prevent energy waste and maximise their efficient usage of power.
These energy storage systems facilitate seamless integration of renewable energy into the grid, improving resilience and helping organisations meet their sustainability goals.
By enabling businesses to embrace innovation, they can navigate the changing energy landscape we anticipate throughout 2025. Our comprehensive approach ensures optimised energy usage, lower emissions, and cost savings for commercial clients, enabling them to navigate energy challenges with confidence.
Conclusion
While 2025 is set to be a year of innovation and sustainability across various sectors, the energy sector–encompassing renewables, nuclear energy and the development of storage and efficient technology–will continue to progress at a rapid pace.
Enterprises that can adapt accordingly to these evolving trends will be better equipped to navigate many of the dynamic infrastructure and environmental changes we expect to be talking about throughout this year.
