Uche Cecil Izuora
The renewable energy sector is set to maintain its robust growth in 2025. According to the International Energy Agency (IEA) renewables are projected to account for over one-third of global electricity generation by early 2025, surpassing coal.
In 2024, 28 per cent of nations, including Nigeria, Kuwait, Bangladesh, Mozambique and Tanzania, actively advanced toward balanced energy systems.
Alongside top-ranking European nations, emerging countries like Brazil showed notable progress in the global energy transition index.
These developments highlight the substantial strides made in energy transition worldwide, despite challenges such as increasing macroeconomic complexities and escalating geopolitical tensions, showcasing resilience across both developed and emerging economies.
The 2025 impressive projection is driven by significant declines in coal-fired power generation in the United States and Europe, alongside rapid renewable energy expansion in China, which continues to prioritize growing its nuclear and hydropower generation and commissioning new clean energy plants.
Additionally, industrialized nations like Japan and South Korea are expected to advance their decarbonization efforts.
Meanwhile, India, projected to have the fastest-growing energy demand globally over the next three decades, is likely to achieve substantial renewable energy installations in 2025, further bolstering the sector’s global momentum.
The global renewable energy sector achieved new heights in 2024 overcoming critical challenges like financing gaps in developing and emerging nations and a lack of international collaborations.
With global renewable energy having attracted new investments worth $313 billion in the first half of 2024 (as stated by the World Economic Forum in its September 2024 report), a significant enhancement in the adoption of clean energy sources has been witnessed so far this year.
In line with this, the Zack’s Alternative Energy industry surged a solid 53.1 per cent in the year-to-date period.
The rapid adoption of electric vehicles in transportation, expanding electricity demand from increasing data center growth, declining cost of installation, strong economic activities worldwide, supportive government policies and growing corporate investments, will push for a solid growth trajectory for the renewable energy sector in 2025.