In 2025, renewable energy continues to redefine the global energy landscape. This is due to rapid technological advances, falling costs, and international climate commitments. Governments, corporations, and investors are prioritizing sustainable power generation. The world needs to achieve the goal of net-zero carbon emissions by 2050.

Let’s look at the top renewable energy trends, emerging technologies, and policy developments to shape the energy transition: –

According to the International Energy Agency(IEA), by the end of 2025, renewables are expected to contribute 38% to global electricity generation. This marks a significant upturn. This is an increase from 30% in 2022.

The growth in the surge is fueled by record investments in solar, wind, and green hydrogen projects across the world.

Year	Global Renewable Capacity (GW)	Share of Global Power (%)	Annual Investment (USD Trillions)
2020	2,799	28%	$0.51
2023	3,865	34%	$0.78
2025 (proj.)	4,900+	38%	$1.05

Source: IEA, BloombergNEF, REN21 Global Status Report 2025

1. Solar Energy Dominance: –

Solar PV (Photovoltaic) is one of the leading renewable energy sources in the market. It accounts for over 60% of new capacity additions. The costs have plummeted by nearly 90% since 2010. This decrease is making solar energy the most affordable source of electricity in many regions.

The innovations, like Perovskite-silicon tandem cells achieving efficiencies above 30%.  Floating solar farms on reservoirs and coastal areas are reducing land use. Solar integration into infrastructure, such as, building-integrated photovoltaics (BIPV) and solar windows.

China, India, and the U.S. stay top investors, while African nations like Kenya and Morocco are rapidly expanding solar mini-grids for rural electrification.

2. Offshore and Onshore Wind Expansion: –

One of the crucial components of the global renewable mix is Wind energy. Offshore wind, in particular, enters a new growth phase. This is due to floating wind platforms and larger turbine designs. These designs exceed 18 MW capacity.

Some of the innovations are: –

• The North Sea Wind Power Hub expands into a multinational grid connecting the UK, Denmark, and the Netherlands.
• The U.S. East Coast sees rapid offshore deployment under the Inflation Reduction Act (IRA) incentives.
• Asia-Pacific markets (notably Japan and South Korea) adopt floating wind systems for deep-water installations.

3. Rise of Green Hydrogen:-

One of the most transformative trends in renewable energy in 2025 is green hydrogen, produced via electrolysis. Global electrolyser capacity tripled since 2022, reaching 45 GW, with large-scale projects in Australia, Saudi Arabia, and Chile.

Some of the applications are: –

• Decarbonising steel and ammonia production.
• Powering hydrogen fuel-cell vehicles.
• Balancing grids through seasonal energy storage.

Siemens Energy and Plug Power are the main corporations to lead in hydrogen technology commercialisation.

4.Energy Storage and Grid Modernisation:-

Energy storage is the most essential storage unit part in 2025. Solid-state batteries offer higher density and greater safety than lithium-ion. Flow batteries for large-scale, long-duration storage and AI-driven smart grids for optimising the demand response and power distribution.

5.Corporate Renewable Energy Procurement:-

One of the leading roles is played by Private corporations in renewable adoptions. In 2025, over 400 companies signed the RE100 commitment to source 100% renewable power. Tech giants like Google, Amazon, and Microsoft are investing heavily in solar and wind PPAs (Power Purchase Agreements). They are also exploring renewable-powered data centers with on-site microgrids.

6. Bioenergy and Waste-to-Energy:-

Bio-energy expanded its horizon in areas, like, bio-gas, bio-fuels, and waste-to-energy (WtE) plants.

Some of the notable projects in the Bio-energy sector are: –

• Sweden and Finland are leading in district heating via biomass.
• India’s GOBAR dhan scheme converts animal waste into clean energy.
• Advanced biofuels are powering the aviation and maritime industries.

Sources:- World Bank Energy Transition Framework, IEA Renewables 2025 Report, BloombergNEF Clean Energy Outlook 2025, REN21 Global Status Report

FAQs

1. What percentage of global energy will come from renewables in 2025?
Approximately 38% of global electricity generation will come from renewable sources in 2025.

2. Which renewable energy source is growing the fastest?
Solar PV is the fastest-growing energy source due to declining costs and rapid deployment.

3. What is green hydrogen, and why is it important?
Green hydrogen is hydrogen produced using renewable electricity. It’s crucial for decarbonizing industries like steel, cement, and transport.

4. How is AI helping renewable energy systems?
AI optimizes grid management, improves energy forecasting, and enhances battery efficiency.

5. What countries lead in renewable energy investment?
China, the United States, India, and members of the European Union are global leaders in renewable investment.

6. How does the Inflation Reduction Act support renewables?
It provides tax credits, funding, and incentives for renewable projects, energy storage, and electric vehicles.

7. What role does battery storage play in renewables?
Battery storage stabilizes grids, stores excess power, and balances supply and demand for intermittent sources like wind and solar.

8. Are renewables now cheaper than fossil fuels?
Yes, in most regions, solar and wind are cheaper than new fossil-fuel-based power plants.