BAKU, Azerbaijan, December 18. The COP29 summit has generated a wave of ambitious climate commitments, with nations like Indonesia, Mexico, and the EU pledging net-zero targets and coal phase-outs, supported by 25 countries, says a research by Rystad Energy, TurkicWorld reports.
According to Artem Abramov, Head of Clean Tech Research at Rystad Energy, these pledges keep exponential growth in low-carbon energy firmly on the global agenda. Yet, 2025 is shaping up to be a critical test for renewables and cleantech, as shifting policies, funding uncertainties, and market pressures challenge the sector.
Abramov notes that the global battery and solar PV markets are likely to remain oversupplied in 2025, pushing prices downward. Despite this, regional biofuel markets may see a rebound as blending obligations come into force, creating pockets of growth in the clean energy sector.
The EU is also poised for significant changes in its carbon market, including the accelerated phaseout of free allowances and the implementation of the Carbon Border Adjustment Mechanism (CBAM). These developments, Rystad Energy predicts, will pave the way for final investment decisions in projects involving low-carbon hydrogen and carbon capture, utilization, and storage (CCUS).
Despite these challenges, the solar PV sector is on track to grow by approximately 600 TWh in 2025, marking a milestone as its annual energy contribution matches that of oil for the first time. Given solar's superior energy efficiency compared to crude oil, this growth equates to two-to-three times more useful energy delivered.
However, headwinds persist. Falling capture prices remain a key concern for the solar sector, though record-low battery storage costs are offering timely solutions that may alleviate some pressures.
