S&P: Energy Transformation Driven by Cleantech Supply Chains

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S&P Global Commodity Insights has released its latest report on the pivotal trends in clean energy technology for 2025
S&P Global highlights surging cleantech energy supply investments, including renewable power generation, green hydrogen production and CCS

A report from S&P Global Commodity Insights shows transformative shifts are anticipated within the clean energy technology scene in 2025, particularly significant developments reshaping the global energy supply chain.

These changes reflect a decisive 2024 for sustainability where clean energy outpaced fossil fuels in markets around the world.

Record-breaking investments in clean technology

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.

Edurne Zoco, Executive Director of Clean Energy Technology at S&P Global Commodity Insights

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

The unprecedented surge in cleantech investments signals a significant shift in global supply chains, with renewable technologies taking centre stage.

Tensions within supply chains

The cleantech supply chain, particularly in sectors like solar, wind and battery production, has seen a significant impact from an equipment oversupply from China, influencing the market extensively.

Despite this, prices are anticipated to stabilise by 2025, although ongoing competition from Chinese manufacturers will continue to exert downward pressure on prices, forging new industry price dynamics.

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However, the report projects a gradual rebalancing of the market: "China's market share in PV module production will decline to 65% and battery cell manufacturing to 61% by 2030."

Energy storage technology is evolving into a vital component for managing the economics of projects in areas heavily reliant on renewable energy sources.

Effective integration of battery storage solutions within the supply chain is essential for enhancing project feasibility and managing price volatilities.

How could AI reshape energy supply chains?

Artificial intelligence (AI) is significantly transforming the clean energy sector, particularly in its applications to forecasting and grid management.

Eduard Sala de Vedruna, Head of Research, Energy Transition, Sustainability & Services at S&P Global Commodity Insights

Eduard Sala de Vedruna, Head of Research, Energy Transition, Sustainability & Services at S&P Global Commodity Insights, notes: "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 technologies are emerging as vital tools for risk management in clean energy supply chains, bridging gaps between forecasted and actual energy generation.

The impact of data centres

Data centres are set to enhance their role in company clean energy procurement, expected to source around 300 TWh of clean power yearly by 2030.

Such an increase will significantly affect clean energy supply chains, especially in regions like North America.

Meanwhile, the pursuit of deeper decarbonisation fuels innovation across supply chains, with ammonia emerging as a significant element in low-carbon hydrogen production and the CCS sector projected to secure substantial CO2 capture capacities by 2025.

Executives navigating the cleantech sector will need to stay apprised of these evolving trends to adeptly manage the complexities of the energy transition.

With cleantech investments leading, 2025 is pegged as a linchpin moment in the renewal of global energy supply chains.


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