In the landscape of 2025, the renewable energy sector is experiencing a dynamic interplay of factors such as advanced technologies, progressive policies, and rushing global demand for cleaner, sustainable energy sources, more rapidly spreading with climate action and sustainability goals. India has aspired to smoothly transition into a renewable-energy-based future with the installation of 500 GW of renewable energy by 2030 and development of up to 1 TW by 2035. The transition away from fossil fuels will be vital to meet the increasingly steep energy demands of a fast-growing population, and thus 2025 will take a major leap towards green energy production. Let’s look at what all this means for renewables in 2025 and beyond.
The government has provided a clear and comprehensive roadmap to support the sustainable future of India with a directed focus on expanding solar energy capacity. Solar is likely to become the topmost renewable source, with consistent improvements in solar photovoltaic technology significantly reducing costs and improving efficiency over time. By the year 2025 end, solar energy by itself could very well provide for close to half of the rise in global electricity demand and will be reconstructing itself as the preeminent renewable source.
The International Energy Agency (IEA) predicts solar energy will be critical for expanding electricity generation capacity due to improvements in photovoltaic technology and lower costs. As solar energy becomes increasingly available to both households and businesses, this trend represents a transition towards greener energy solutions.
The rise of microgrids and peer-to-peer energy trading
India faces the challenge of ill-timed power outages, which is important to control to sustain critical operations such as hospitals and data centres. This problem can be tackled with the introduction of microgrids and decentralised energy systems. These distributed generation and distribution models harness local energy sources, improving energy resiliency and reducing dependence on centralized grids, especially in remote or fragile areas.
Another emerging trend is peer-to-peer energy trading, whereby homeowners with surplus solar energy would trade it directly with their neighbours through blockchain and smart contract technologies. In this way, the energy market is decentralising and making energy access equitable.
The critical role of energy storage
Energy storage is necessary for wide acceptance and use of renewable energy sources based on solar and wind power. Due to renewables’ intermittent nature and corresponding variable output with the changing weather conditions, reliable and efficient energy storage solutions become imperative for a reliable and consistent electricity supply to the grid.
The utmost R&D focus shall be on improving battery chemistry, optimizing energy density, and extending the lifespan of the batteries. This will contribute greatly to grid stability and pave the way for decentralized energy systems, such as residential solar panels combined with battery systems. This trend towards decentralized energy production makes consumers more independent and robust in their energy consumption.
Surge in private investments
There is a growing trend of private investment in the renewable energy sector, driven by both economic prospects and environmental concerns. Governments worldwide are enacting policies that encourage investment in green technologies. As businesses recognise the long-term benefits of transitioning to renewable sources, private capital is increasingly flowing into innovative projects that promise sustainable returns.
Opportunities ahead
There are numerous opportunities in the renewable energy market for companies and innovators. One notable development is the significant reduction in solar photovoltaic (PV) costs. Over the past decade, solar PV costs have fallen by approximately 90%, making solar energy one of the most cost-effective sources globally.
In India, this trend is reflected in the substantial decrease in utility-scale solar tariffs, which have fallen from INR 10.95/kWh in 2010 to as low as INR 2.5/kWh in 2023, highlighting the economic viability of solar projects.
This cost reduction has been accompanied by a surge in employment within the renewable energy sector. As of 2023, India’s renewable energy sector has created approximately 1.02 million jobs, highlighting the sector’s role in driving economic growth and sustainable livelihoods.
Projections indicate that achieving India’s solar and wind energy targets for 2030 could generate about 3.4 million new jobs, significantly contributing to the nation’s green economy. The global landscape mirrors this growth, with the wind energy capacity expected to double between 2024 and 2030, nearly tripling the expansion observed between 2017 and 2023.
At the given pace, by the end of 2025, the renewable energy industry will have redefined energy production, storage, and consumption in addition to satisfying energy demands. With solar power at the forefront, storage technology advancements, and an increase in collaborations, the way to a sustainable future is becoming more apparent. Now is the moment for industry stakeholders to take advantage of the opportunities and help create a more resilient and greener planet.
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