In 2025, a significant milestone is set to occur in the global energy landscape: investments in clean energy technologies are projected to outpace those in fossil fuels for the first time. According to a report by S&P Global Commodity Insights, cleantech investments are expected to reach $670 billion, with solar photovoltaic systems accounting for half of these investments and two-thirds of all new installed capacity. press.spglobal.com This surge is driven by rapid cost reductions and supportive industrial policies worldwide. For instance, the cost of lithium-ion batteries has dropped more than 90% over the last decade, making energy storage solutions more accessible and efficient. weforum.org
This shift is not just a financial trend but also a response to the escalating demand for clean energy solutions. The rise of electric vehicles and the electrification of various sectors have increased the need for sustainable power sources. In response, countries like China are leading the charge, constructing 74% of all solar and wind projects currently underway worldwide. ft.com However, challenges remain, such as the need for advanced energy storage solutions to manage the intermittent nature of renewable sources. Innovations in battery technology and the development of virtual power plants are emerging to address these issues, ensuring a stable and reliable energy supply. globenewswire.com