Energy Outlook 2025
Written By
Partner
Germany
Offering extensive entrepreneurial knowledge and long-standing expertise in regulatory matters around infrastructure and energy, I am a partner in our international Energy and Utilities Sector Group and a member of our Regulatory and Administrative Practice Group.
We’re delighted to introduce the third edition of our Energy Outlook report, where our global Energy & Utilities team anticipate the important developments across key areas of the sector and give an invaluable oversight of what to expect in 2025.
The Energy & Utilities sector continues to change rapidly, with governments and the private sector dealing with increasing energy demand worldwide and continuing geopolitical tensions.
The transformative potential of AI is starting to be realised in driving progress in the energy transition. There continues to be a need for large-scale investment to develop clean energy solutions and supplies of critical resources.
Global clean energy investment doubled in 2024, exceeding USD3 trillion for the first time. With energy demand increasing worldwide, we expect to see even more investment in 2025 to meet that need.
Renewables are poised for significant growth in 2025, driven by increased demand, government support, and corporate commitments. The energy storage market, in particular battery electric storage systems, is also set to boom. This is driven by improved project economics as a result of lower costs, increased renewable energy supply and strong government support. Furthermore, low-carbon hydrogen is gaining traction, with increasing investment indicating a strong 2025 ahead.
Whilst interest rates have meant the era of cheap borrowing has come to an end, the impact on clean energy projects has been offset by fewer supply chain issues and lower prices for components. With solar panel costs 30% lower now than 2 years ago and crucial battery minerals also much lower, the trend on project economics going into 2025 is positive.
However, the clean energy landscape faces significant political uncertainties going into 2025. Shifts in US energy policy could disrupt clean energy investments and trade, not only with China. Meanwhile, political challenges in Europe, including new and changing governments in Germany and France and a new European Commission, may lead to adjustments in energy transition policies, potentially slowing the pace of change and increasing scrutiny on costs.
This year’s Energy Outlook brings together significant themes across the energy system, covering:
- Renewable Energy
- Energy Storage
- Energy Digitalisation
- Energy Networks & Grids
- Energy Management
- Mining & Minerals
- Electric Vehicles
- Hydrogen
- Oil & Gas
- Nuclear Energy
The following pages highlight and assess how these market trends will shape the energy sector’s agenda in 2025. I hope you’ll find it an enjoyable read, with anticipation for the developments we’ll see in the transformative year ahead across the energy sector.
