New Year, New Growth in Renewables

green energy news / 27th Jan 2025

The momentum toward renewable energy is stronger than ever. 2024 was a landmark year for global energy transition, with solar power and battery storage leading the charge.

From falling coal use to skyrocketing investments in clean energy, the shift to renewables is accelerating across the globe. Here are some of the highlights and trends that shaped the renewable energy landscape last year.

Solar and Batteries Dominate the Global Energy Shift

In 2024, solar power and batteries played a pivotal role in reshaping the global energy market. China, already a dominant player in green tech, such as solar, batteries electric vehicles and wind turbines drove down costs through strategic government subsidies. This resulted in more affordable and accessible green energy solutions worldwide.

Solar Power’s Global Expansion

Countries like Chile and India saw substantial growth in solar capacity in 2024, with Chile reporting a 231% year-over-year increase in solar installations, and India commissioning 68.2 GW of utility-scale solar capacity, with another 65.6 GW in the pipeline.*1

In addition, the International Energy Agency (IEA) noted that solar power reached new heights globally, generating about a fifth of the world’s electricity during midday peaks in the summer of 2024. 

Battery Storage: Key to a Stable Energy Future

As solar capacity expands, the need for efficient energy storage grows. With solar energy often peaking during the day, storage systems help balance supply and demand, especially when grid infrastructure can’t keep up. Battery prices have plummeted, driven by advances like lithium iron phosphate (LFP) technology, which now accounts for 80% of grid storage batteries. Sodium ion technology is also ramping up making storing energy ever more affordable and secure.

Countries like Chile, which have more solar capacity than their grid can handle, are increasingly relying on batteries to store excess power. Meanwhile, Europe has seen battery storage capacity double, and this trend is expected to continue.

Renewables on the Rise: A Global Trend

The transition to renewable energy is not limited to a few countries; it’s happening everywhere. The IEA reported that in 2024, nearly $2 trillion was invested in clean energy, almost double the amount spent on fossil fuels. 

Europe’s Renewable Energy Surge

In Europe, renewables are outpacing fossil fuels. In the first half of 2024, wind and solar generated a record 30% of the EU’s electricity, surpassing fossil fuels’ 27% share for the first time. The UK, too, is witnessing a notable shift, with renewable energy accounting for 47% of its power generation in Q2 2024.

The US: A Turning Point for Solar and Wind

The US also experienced significant growth in renewable energy. Wind and solar power together provided a record 17% of US electricity in 2024, overtaking coal’s 15% share for the first time. 

Challenges to Overcome: Grid Integration, Energy Storage and Short- termism

While the progress in renewable energy is encouraging, there are still challenges to address. The intermittent nature of solar and wind energy can lead to periods of excess generation, which drives down prices. To address this, energy storage, enhanced grid management, and demand-side flexibility are becoming more critical than ever. 

There is a trend among some of the biggest oil companies to draw back from investment in renewable energy, the reason being generally, their short-term view on profitability (the median return on capital for oil companies was 11%, compared to just 2% for renewable energy firms, according to S&P Global). Investors want returns on their money and the desireability of renewable stocks is reflected in share prices. 

Despite oil giants, like BP and Shell moving out of, or pausing, their renewable projects, there are others in the renewable energy sector. Companies like Iberdrola, Orsted, and NextEra Energy that, according to the International Energy Agency, remain focused entirely on clean energy supported by nearly double the global investment in renewables compared to fossil fuels.  The confidence of multi-nationals to transition will depend on more financial incentives, governmental climate change penalties and awareness of how the climate is changing and the recognition of the imperative need to act now.

Looking Ahead: A Bright Future for Renewables in 2025

Overall, the progress made in 2024 sets the stage for more advancements in 2025. The global shift to clean energy is no longer a distant goal—it’s happening now. With continued investments in solar, storage, and grid infrastructure, and governments increasingly prioritizing renewable energy, we can expect 2025 to be another year of rapid growth and innovation in the renewable energy sector.

As we continue our journey toward net-zero, the energy transition will only gain momentum. The age of fossil fuels is fading, and the Age of Electricity is upon us.

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