The global cleantech energy supply market is on a strong upward trajectory, with spending expected to reach $670 billion in 2025. This would mark a significant shift as it surpasses fossil fuel investments for the first time.
According to a report by S&P Global Commodity Insights, solar photovoltaic (PV) energy is predicted to account for half of these investments, reflecting the growing global focus on clean energy solutions.
India stands out as a key player in this global shift, with its ambitious clean energy goals and increasing investments in solar and other renewable sources.
The report highlights how government initiatives, such as the US Inflation Reduction Act and India's production-linked incentive, are driving local clean energy technology production.
These initiatives not only create jobs but also enhance supply chain resilience, positioning countries like India to be significant contributors to the global clean energy transition.
The political climate, particularly the ongoing anti-dumping investigation in the US into cell exports from Southeast Asia, has further spurred India's efforts to ramp up its photovoltaic manufacturing capacity.
This shift presents an opportunity for India to target exports, especially to the US market, capitalising on the trade tensions between the US and China.
India's renewable energy sector has made substantial progress in recent years. By December 2024, India's total renewable energy installed capacity had grown by 15.84%, reaching 209.44 GW, compared to 180.80 GW in December 2023.
This significant growth is indicative of India's strong commitment to clean energy and its potential to become a global leader in this sector. In 2024 alone, India added 28.64 GW of renewable energy capacity, marking a remarkable year-on-year increase of 119.46% compared to the 13.05 GW added in 2023.
The solar power sector has been a key driver of this growth, contributing 24.54 GW to the total, with its cumulative installed capacity rising by 33.47% from 73.32 GW in 2023 to 97.86 GW in 2024.
As the global renewable energy market expands, the role of energy storage solutions is becoming increasingly important.
The report mentions that battery energy storage systems are essential for improving the economics of renewable energy projects, especially in regions with high renewable energy penetration.
Long-duration energy storage systems are expected to double in installations by 2025, helping to stabilise grids and optimise energy usage. Additionally, artificial intelligence (AI) applications are gaining momentum, helping to forecast renewable energy generation and improve grid planning.
These technological advancements are crucial for the efficient integration of renewable sources into the grid and for maximising the potential of clean energy worldwide.
The report also notes that data centres, which are major consumers of energy, are increasingly turning to clean power sources.
By 2030, data centres are projected to source approximately 300 terawatt hours (TWh) of clean power annually, significantly boosting the corporate sector's clean energy procurement efforts.
This growing demand for clean energy is expected to be met through a combination of renewable energy sources and energy-efficient technologies, further accelerating the shift towards a greener economy.
Follow us
