Robert Rapier
Robert Rapier is a chemical engineer in the energy industry. He has 25 years of international engineering experience in the chemical, oil and gas, and…
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By Robert Rapier – Jan 20, 2025, 4:00 PM CST
- Decarbonization is driving energy policy and investment, but fossil fuels will remain a major part of the energy mix for the foreseeable future.
- Energy storage and grid innovation are essential to support the growth of renewable energy.
- Emerging markets will drive global energy demand, and technology will be a key catalyst for change in the energy sector.
The global energy landscape is in the midst of a transformation, driven by accelerating climate goals, technological innovation, and shifting geopolitical dynamics. Energy Intelligence’s 2025 Energy Outlook sheds light on the trends shaping the industry’s near-term future, offering key insights into how governments, businesses, and consumers are adapting to a rapidly evolving energy paradigm.
Here are some major themes and insights from the report, along with an analysis of their broader implications.
1. Decarbonization Drives Policy and Investment
As nations double down on commitments to net-zero emissions, the push for decarbonization has become the dominant force influencing energy policies. Energy Intelligence notes that a significant wave of investment is pouring into renewable energy, electrification, and energy efficiency. Governments are setting ambitious targets, with more than 80 countries now committed to net-zero goals. These policies are reshaping traditional energy markets and intensifying competition for green technology leadership.
For businesses, the opportunity lies in aligning with government incentives and expanding portfolios in renewable power, green hydrogen, and carbon capture technologies. Companies that adapt quickly to this new environment stand to gain a first-mover advantage.
2. Renewables Surge, but Fossil Fuels Hold Ground
Renewable energy sources like solar and wind are expected to grow at record rates through 2025, with global solar capacity projected to double by then. Yet, fossil fuels remain deeply entrenched in the global energy mix, accounting for over 75% of primary energy consumption today. Despite declining market shares, Energy Intelligence forecasts that oil and natural gas will still meet the lion’s share of global energy demand in 2025, largely due to their critical roles in transportation and industrial sectors.
The path to decarbonization is not a simple replacement of fossil fuels but a rebalancing act. For the foreseeable future, the industry will have to juggle the dual challenge of expanding low-carbon energy while ensuring energy security and affordability through traditional fuels.
3. The Rise of Energy Storage and Grid Innovation
As renewable penetration rises, energy storage solutions and grid modernization have become essential. The report highlights the growing importance of battery storage systems in balancing supply and demand, particularly as solar and wind generation fluctuate.