By sion932 
- Currently, five main factors are influencing energy technology trends for 2025.
- Energy security, cost and employment issues, decarbonization, and artificial intelligence are all areas that require close attention.
- The World Economic Forum’s Advanced Energy Solutions Community is working to promote collaboration in the field of energy technology and accelerate the deployment of new technologies.
Against a backdrop of heightened global geopolitical tensions, frequent policy shifts, and increasing economic uncertainty, the landscape of energy investment is being reshaped. The recent repeal of the US Inflation Reduction Act is a prime example of this rapid policy change at the national level, demonstrating how quickly circumstances can shift and potentially lead to the complete withdrawal of policy incentives across entire technology sectors.
Despite the policy shifts in the US, the global energy transition is accelerating, with countries vying for technological and manufacturing advantages. According to the World Energy Investment Report 2025, global energy investment in renewable energy, nuclear power, power grids, energy storage, low-emission fuels, energy efficiency, and electrification is projected to reach $2.2 trillion by 2025.
The following are key trends shaping the energy technology investment landscape in 2025:
- Security, Cost, and Employment as Driving Forces
Energy security, affordability, and industrial policy are driving energy technology choices and investments, particularly in energy-importing countries. Driven by these factors, global clean energy investment is growing rapidly, even though the priority of decarbonization has decreased in some cases.
For example, China’s investments in renewable energy, energy storage and batteries, electric vehicles, and nuclear power are primarily aimed at reducing reliance on oil and gas imports and establishing leadership in new technologies. Meanwhile, Europe is also heavily investing in renewable energy and energy efficiency to reduce its dependence on Russian oil and gas. Similarly, the United States is implementing new policies to bring supply chains back home.
- Decarbonization Remains a Long-Term Goal
Despite the significantly increased importance of energy security, cost, and industrial policy, decarbonization and emissions reduction remain top priorities for governments and businesses.
While corporate business plans and targets have become more pragmatic, and timelines are sometimes extended, a strong commitment to decarbonization remains, even among traditional energy giants.
There is now a greater focus on how to reduce local pollution from energy production and use through technological means to gain social acceptance. In other words, the focus is on current, realistic challenges, rather than the distant 2050 targets.
- China’s Dominance
China is the dominant force in next-generation energy technologies. It is by far the world’s largest energy investor, with investments almost equal to the combined total of the EU and the US, investing hundreds of billions of dollars in the manufacturing and deployment of renewable energy, energy storage, and nuclear power.
China’s industrial and energy policies are generally considered very effective in stimulating domestic demand and building manufacturing and supply chains. From wind and solar power to batteries and electrolyzers, China dominates almost all clean energy technology supply chains. These investments have not only transformed the Chinese economy but also given China broader influence in global politics.
- India’s Rapid Rise
India has set ambitious goals for energy transition and has achieved remarkable results. For example, it achieved its 2030 target of 40% renewable energy capacity nine years ahead of schedule. To replicate this success and advance the “Make in India” strategy, the Indian central and state governments have implemented several measures, including incentives for domestic manufacturing and mandates for clean energy deployment. These policies are propelling India to become a significant global player in energy storage, green hydrogen, and solar energy.
India’s leading businesses are also pursuing these goals with remarkable speed and scale. For example, the Dhirubhai Ambani Giga Energy Complex, scheduled for completion in 2026, will create a gigawatt-scale manufacturing ecosystem, including 10 GW of solar panels, 100 GWh of battery storage systems, and 3 GW of hydrogen electrolyzers annually. It will be the world’s largest complex of its kind, with a footprint four times the size of a Tesla Gigafactory.
- AI-Driven Energy Anxiety
According to the International Energy Agency, data center electricity consumption will more than double by 2030, reaching approximately 945 terawatt-hours, slightly more than Japan’s current total national electricity consumption. Artificial intelligence is a key driver of this growth.
However, grid connection queues are long and complex, and building new transmission lines can take 4 to 8 years. Power generation equipment supply is also tight, with delivery times for new gas-fired power plant turbines often extending into the next decade. With many grids already overloaded, approximately 20% of data center construction projects face delays.
In fact, according to Bloom Energy’s “2025 Data Center Power Report,” power availability has become the primary factor in data center site selection, even surpassing factors like fiber optic network accessibility. Indeed, it is projected that by 2030, nearly one-third of data centers will operate entirely on on-site power, bypassing existing grid systems. Interestingly, while decarbonization targets rank slightly lower, their importance remains enduring: 95% of respondents indicated that sustainability and carbon reduction remain key objectives.
Advanced Energy Solutions Community
The World Economic Forum supports the adoption of integrated energy solutions encompassing a range of technologies, including energy storage, advanced nuclear power, clean fuels, hydrogen, and carbon removal. No single technology can solve the entire energy transition problem; a combination of technologies is necessary. Different regions, industries, and companies will adopt their own strategies, but collaboration is essential.
Platforms such as the World Economic Forum’s Advanced Energy Solutions Community help accelerate this collaboration and shorten the deployment time of new technologies such as energy storage, clean fuels, hydrogen, advanced nuclear energy, and carbon removal from decades to years.
This community brings together industry leaders at the forefront of energy systems to collectively shape the industry vision and direction for advanced energy solutions, support collaboration among innovators, large energy companies, energy users, and investors, and provide informed support for policymaking.