Renewables to Cover 90% of Global Electricity Demand Growth in 2025
A new IEA report projects that renewables, especially solar and wind, will supply 90% of electricity demand growth in 2025, with solar generation expected to increase by 27% year-on-year in 2026. The contribution of coal in the world’s electricity generation is forecast to fall below one-third for the first time in a century, as Europe and the US continue to ramp up solar deployments and low-emission sources approach 75% of Europe’s energy mix by 2026[1].
Global Renewable Energy Investment Hits Record $386 Billion in First Half of 2025
Global investment in new renewable energy projects reached a record $386 billion in the first half of 2025, up 10% from the previous year, driven by offshore wind and small-scale solar. However, utility-scale solar and onshore wind asset finance declined by 13% compared to the first half of 2024, especially in markets facing curtailment and negative power prices[2].
States Accelerate Renewable Permitting to Beat Expiring Federal Tax Credits
US states are fast-tracking permits for wind and solar projects as federal clean energy tax credits near expiration, with some governors directing agencies to prioritize approvals and utilities to connect projects to the grid quickly. The rush is driven by concerns that the loss of tax credits could undermine the financial viability of new renewable projects and stall clean energy transitions[3].
IRS Narrows 5% Safe Harbor for Wind and Solar Projects
The IRS issued Notice 2025-42 on August 15, restricting the use of the 5% Safe Harbor for wind and solar projects to only low-output solar facilities (≤1.5 MW) for projects starting after September 2, 2025. Projects that began construction earlier or are operational by the end of 2027 are not affected, and the change is not as stringent as some in the industry feared[6].
Battery Storage Expands Rapidly to Support Renewable Integration
Grid-scale battery deployment is accelerating globally, providing critical flexibility for power systems dominated by variable renewables like solar and wind. Competitive auctions, such as India’s recent Solar and Battery Energy Storage System tenders at $3.6 cents/kWh, highlight falling costs and increasing integration of storage with renewables across Asia, the Middle East, and North Africa[4].
Renewable Power Price Advantage Diminishes Amid Market Shifts
Industry experts note that while renewables remain essential for new capacity, the narrative that renewable power is universally cheaper than conventional sources has shifted, with some subsidized solar contracts in the US priced at $50–$70 per MWh