A report from S&P Global Commodity Insights looks at clean energy technology trends for 2025.

It predicts a transformative year for the cleantech sector with investments outpacing fossil fuels for the first time.

Edurne Zoco, Executive Director of Clean Energy Technology at S&P Global Commodity Insights, says: “S&P Global Commodity Insights forecasts that cleantech energy supply investments, including renewable power generation, green hydrogen production and carbon capture and storage (CCS), will reach US$670bn in 2025, marking the first time these investments will outpace projected upstream oil and gas spending.

“Solar PV is expected to represent half of all cleantech investments and two-thirds of installed megawatts.”

Supply chain tensions and rebalancing

The cleantech sector is experiencing a saturation of Chinese-manufactured equipment, affecting the global pricing structure within the solar, wind and battery domains.

Despite potential price stabilisation by 2025, Chinese competition is slated to maintain low market prices.

Nonetheless, a rebalancing act is anticipated, with projections suggesting a decline in China’s market share in PV module production to 65% and battery cell manufacturing to 61% by 2030.

This evolution presents both challenges and opportunities, demanding strategic foresight from supply chain professionals.

The importance of battery energy storage is becoming increasingly significant in enhancing the economics of projects within regions with substantial penetration of renewable energy.

Effective integration of battery storage solutions is essential for managing both viability and price volatility in renewable projects.

AI’s impact on clean energy supply chains

Clearly, AI is transforming the cleantech sector, particularly in forecasting and grid planning. 

Eduard Sala de Vedruna, Head of Research, Energy Transition, Sustainability & Services at S&P Global Commodity Insights, explains: “The new year is not only bringing to the clean energy sector significant transformations that are reshaping energy production and consumption, but it promises to be pivotal for the clean energy sector, with significant advancements in corporate clean energy procurement and the integration of AI in energy management.”

AI-powered applications are emerging as critical tools for risk mitigation in energy supply chains, addressing discrepancies between forecast and actual energy generation.

Data centres are also expected to play a more significant role.

Expected to source approximately 300 TWh of clean power annually by 2030, they are becoming pivotal in driving demand for renewable energy, especially in North America.

Decarbonisation and supply chain innovation

The pursuit of deep decarbonisation is requiring innovation across the supply chains.

With ammonia increasingly becoming fundamental to low-carbon hydrogen production and the CCS sector on track to secure significant CO₂ capture capacity by 2025, the cleantech sector is poised for considerable advancements.

For supply chain managers, staying abreast of these developments is crucial for navigating the complexities of the ongoing energy transition effectively.

By Jasmin Jessen, Energy Digital / February 17, 2025