Key Trends in Renewable Energy Solutions: 2024-2025 Overview

Market Growth and Current State

Overall Market Performance

• Global renewable energy capacity saw unprecedented growth in 2024, with a 15.1% increase and addition of 585 GW of new capacity 12
• Solar and wind energy dominated new additions, accounting for 96.6% of all net renewable capacity additions in 2024 1
• Renewable energy supplied 30% of global electricity, 10% of heat, and 3.5% of fuel in 2023 18
• Global investment in clean energy reached $2.1 trillion in 2024, representing an 11% increase from the previous year 79

Regional Developments

• The United States demonstrated remarkable growth:
  • Added 38.3 GW of solar capacity in 2024, a 54% increase 13
  • Solar accounted for 81.5% of new electricity sources added to the US grid 16
  • Wind capacity reached 153.8 GW by end of 2024, up 6.5 GW from previous year 17

Technology Innovations by Sector

Solar Energy

• Perovskite solar cells represent a significant breakthrough:
  • Silicon-perovskite tandem cells achieved efficiency up to 34% 25
  • Being commercialized as a more cost-effective alternative to traditional silicon cells 26
• Bifacial solar panels gaining prominence:
  • Generate up to 30% more energy than traditional panels 22
  • Increasingly replacing conventional polycrystalline options 27

Wind Energy

• Floating offshore wind technology advancing rapidly:
  • The Floating Offshore Wind Shot initiative aims to reduce costs significantly 31
  • New semi-submersible platforms like WindFloat addressing anchoring challenges 34
• Innovation in turbine design:
  • Development of bladeless turbines expanding deployment possibilities 32
  • Integration of vertical axis wind turbines for offshore applications 36

Hydropower

• Focus on pumped storage solutions:
  • Global pumped storage hydropower capacity grew by 6.5 GW in 2023 35
  • Small-scale pumped storage projects gaining traction, particularly in northern regions 33
• Innovations in small-scale hydropower:
  • New designs including gravity hydraulic machines and Archimedes screws
  • Enhanced focus on mini-grid and rural electrification strategies

Geothermal Energy

• Enhanced Geothermal Systems (EGS) leading innovation:
  • More accessible deployment through advanced drilling techniques 39
  • US DOE launched second-round funding for EGS demonstrations 44
• Closed-loop systems gaining attention:
  • Eliminate need for fracking and reduce water loss 47
  • Potential for broader geographical deployment 39

Emerging Technologies and Trends

Energy Storage

• Battery storage sector showing strong growth:
  • Storage additions increased 55% year-over-year 71
  • LCOE for battery storage expected to fall 11% from $104/MWh to $93/MWh between 2024-2025 76

Green Hydrogen

• Significant expansion in production capacity:
  • Exponential growth driven by renewable energy integration 57
  • Electrolyzer technologies becoming more efficient and cost-effective 51

Challenges and Considerations

Infrastructure and Integration

• Grid integration lagging behind deployment speed:
  • Risk of increasing curtailment in areas with inadequate infrastructure 62
  • Need for substantial investment in transmission upgrades 86

Supply Chain Issues

• Critical material constraints:
  • Limited availability of lithium affecting battery production 65
  • Supply chain risks impacting procurement strategies 63

Policy and Regulatory Environment

• Need for sustained policy support:
  • Current growth rate of 15.1% must increase to 16.6% to meet global targets 12
  • Regulatory uncertainty affecting investment decisions 63

Future Outlook

• Projections indicate continued strong growth:
  • Almost 1 terawatt of new solar and wind capacity expected to connect to US grid between 2024-2035 72
  • Investment in renewable technologies expected to double to $2.4 trillion by 2030 81
• Technology costs expected to continue declining:
  • Grid-scale solar LCOE projected to drop 2% globally in 2025 76
  • Continued innovation driving efficiency improvements across all sectors