• Cleantech energy investments projected at $670 billion, outpacing upstream oil and gas spending.
• Solar PV expected to account for half of cleantech investments and two-thirds of installed capacity.
• AI and energy storage innovations are reshaping project economics and renewable grid integration.

S&P Global Commodity Insights reports a significant milestone in clean energy: cleantech investments, including renewable power, green hydrogen, and carbon capture, will surpass upstream oil and gas spending in 2025, totaling $670 billion.

Driving the Shift

“The new year 2025 is bringing significant transformations to energy production and consumption,” said Eduard Sala de Vedruna, Head of Research, Energy Transition, Sustainability & Services at S&P Global Commodity Insights. Solar PV alone is set to represent half of all cleantech investments and two-thirds of installed megawatts.

Despite this progress, funding levels remain insufficient to meet climate targets, including the goal to triple renewable capacity by 2030. Notably, China’s capital efficiency in renewables surpasses the U.S., adding nearly twice the gigawatts per dollar spent.

Supply Chain Dynamics

Chinese manufacturers dominate the supply of solar, wind, and battery equipment, affecting global pricing. While price declines may stabilize in 2025, competition from China is expected to keep costs low. However, China’s domestic economic slowdown has prompted efforts to regulate manufacturing growth. Projections indicate China’s market share in PV module production will decline to 65% and battery cell manufacturing to 61% by 2030.

Storage and AI Transformations

Battery energy storage is becoming critical for addressing market challenges, such as low power prices during peak renewable output. “Despite lower solar costs, robust project development remains hindered by low power purchase agreement expectations,” the report notes. Integrating battery solutions enhances economic viability and mitigates midday price drops.

AI is reshaping renewable generation and grid planning. AI-powered trading tools are mitigating forecast discrepancies that can reach up to 700%. However, these innovations come with risks, including cybersecurity concerns and potential unethical practices.

Corporate Clean Energy Growth

Datacenters are amplifying corporate clean energy procurement. By 2030, they are expected to source 300 TWh annually, up from the current 200 TWh. North American datacenters will drive 60% of this growth.

Decarbonization Trends

Ammonia is playing a key role in low-carbon hydrogen projects, supporting both electrolytic and carbon capture-based initiatives. In 2025, carbon capture, utilization, and storage (CCUS) capacity is projected to reach 70 million metric tons per year, supported by new corporate and government strategies.

The surge in carbon dioxide removal agreements over the past three years signals rising corporate interest and stronger policy backing, despite high costs.

Related Article: China Invests Over $100 Billion Overseas in Cleantech Since 2023, Driven by Trade Barriers

“2025 will mark a pivotal year for the cleantech sector, with advancements in procurement and energy management,” said Edurne Zoco, Executive Director of Clean Energy Technology at S&P Global Commodity Insights.

S&P Global Commodity Insights’ report underscores the transformative changes underway, positioning cleantech as a dominant force in the global energy landscape.

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