Global Cleantech Energy Investment Expected to Hit $670 Billion by 2025, India Shines Bright
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Synopsis
A recent report predicts that global cleantech energy supply spending will reach $670 billion in 2025, overtaking fossil fuel investments for the first time, with India poised to play a major role in this sector's growth.
Key Takeaways
- Global cleantech spending: $670 billion by 2025.
- Solar PV investments: Expected to account for half of cleantech investments.
- India's growth: 15.84% increase in renewable capacity in 2024.
- AI in energy management: Gaining traction for grid integration.
- Data centers: To source 300 TWh of clean power by 2030.
New Delhi, Jan 14 (NationPress) Global spending on cleantech energy supply is anticipated to reach $670 billion by 2025, marking a historic shift as it overtakes fossil fuel investments for the first time. India emerges as a significant player in this growth, as highlighted in a Tuesday report.
The solar photovoltaic (PV) sector is projected to represent half of the total cleantech investments, according to insights from S&P Global Commodity Insights.
The report states, "In recent years, government initiatives such as the US Inflation Reduction Act and India's production-linked incentive have fostered the domestic production of clean energy technologies, leading to job creation and enhanced supply chain resilience."
A current antidumping investigation in the US regarding cell exports from four Southeast Asian nations, which proposed high preliminary tariffs on exports from these countries on November 29, 2024, could drastically alter the global landscape for PV manufacturing.
Furthermore, the report indicates that India is rapidly increasing its PV manufacturing capacity, with plans to export to the US market, capitalizing on the ongoing trade tensions between the US and China.
India's total renewable energy installed capacity has seen remarkable growth, achieving a 15.84 percent increase to reach 209.44 GW by December 2024, up from 180.80 GW in December 2023.
During 2024, a total of 28.64 GW was added, marking a significant year-on-year jump of 119.46 percent compared to the 13.05 GW added in 2023, as per the latest government statistics.
Further analysis revealed that the solar power sector led this expansion with the addition of 24.54 GW, which reflects a 33.47 percent increase in cumulative installed capacity from 73.32 GW in 2023 to 97.86 GW in 2024.
Additionally, the report emphasizes the growing importance of battery energy storage for improving project economics, particularly in regions with significant renewable energy integration.
"Long-duration energy storage systems are expected to see a doubling in installations by 2025. Applications of AI in renewable generation forecasting and grid planning are gaining momentum, enhancing energy management and the integration of renewable sources into the grid," it stated.
Data centers are predicted to source around 300 Terawatt hours (TWh) of clean power each year by 2030, significantly boosting their role in corporate clean energy procurement.
