The Energy Transition in 2025: Key Trends to Watch
Source: The Energy Transition in 2025: What to Watch For
Following a tumultuous 2024, characterised by record-high temperatures and the threat of crossing critical thresholds, the year nonetheless saw substantial progress in the adoption of renewable energy and electric vehicles. As we step into 2025, the urgency to achieve 2030 climate targets has never been greater. While the global shift toward clean technology accelerates, challenges in energy efficiency persist. A dramatic increase in clean energy investment and the rapid implementation of national climate plans will be essential this coming year.
UK-China Relations, Energy Shifts and EU Tensions
Source: Carbon Brief
UK Chancellor Rachel Reeves’ recent visit to China secured deals worth up to £1bn in trade, climate and financial deals, signalling a new era of cooperation. On the energy front, China's oil demand may peak earlier than anticipated, while coal power is experiencing an unexpected resurgence. However, China has experienced a promising growth in renewable energy, with record-breaking solar and wind capacity, fuelled by a massive energy grid upgrade and investment in cutting-edge power infrastructure.
AI’s Power Surge: Can the UK’s Energy System Handle It and still go net-zero?
Source: Loughborough University
The UK aims to stay competitive in the global AI race, proactively investing in the management and utilisation of AI systems as well as increasing the computing power available for AI research and development. However, these are energy intensive processes due to the required computing power, raising concerns about whether renewable energy can meet this need while also decarbonising various sectors. This goes against the very direction we need to take in addressing the climate crisis.
Overcoming Key Challenges to Unlock a Sustainable Future
Source: IEA Report
The Netherlands has made great strides in its clean energy transition, halving power sector emissions since 2018 and positioning itself as a potential frontrunner in the field. However, challenges remain, including the need to upgrade electricity grids and reduce reliance on natural gas. Despite these hurdles, the country has seen promising growth in solar and wind power, steadily advancing towards its long-term energy and climate goals. Looking ahead, the Netherlands plans to quadruple its electricity supply by 2050, with a strong emphasis on expanding offshore wind and hydrogen production.
United States Trails Europe in Wind Energy Development
Source: reNews
The US finds itself falling behind Europe and other major economies in terms of wind power, producing only 10% of its electricity through this method of energy generation in 2023. The EU outpaced this, generating 17% of its electricity from wind in 2024, with Denmark and Ireland at the forefront. While states like Kansas and Iowa show strong progress, concerns are growing that the US risks falling behind in the global clean energy transition. China dominates global wind growth, and countries such as Saudi Arabia and Indonesia are accelerating their shift to renewables, highlighting the urgency for the US to ramp up its efforts.
Clean Energy 2030 Shaping the Future of the Industry
Source: NESO Clean Power 2030 Report
NESO's Clean Energy 2030 strategy aims to transform the UK's energy system to meet ambitious renewable energy targets by 2030. The initiative supports government objectives to accelerate renewable energy adoption, enhance energy efficiency, and integrate advanced technologies such as battery energy storage systems (BESS). Achieving these goals, however, depends on swift grid upgrades, efficient planning processes and the successful deployment of a diverse range of low-carbon technologies.