IEA: Renewables Expected to Cover 90% of Global Electricity Demand Growth in 2025
Renewable energy, especially solar, is forecast to supply 90% of the increase in global electricity demand for 2025, with solar generation projected to grow 27% year-on-year in 2026. The global share of coal in electricity generation will fall below one-third for the first time in a century, while Europe is expected to reach 402GW of installed solar capacity by year-end, despite a slight slowdown in new additions and regulatory changes affecting wind and solar project permitting[1][4].
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 financing fell 13% compared to 2024, with notable declines in China, Spain, Greece, and Brazil due to rising curtailment and negative power prices, pushing investors towards markets with favorable policies and auctions[2].
U.S. Energy Storage Capacity to Grow 68% in 2025, Offsetting Slower Solar and Wind Growth
U.S. electric battery storage capacity is projected to surge by 68% in 2025, helping to mitigate a slowdown in solar and wind installations caused by regulatory uncertainty and changing federal incentives. Extreme weather events and record high electricity consumption in July have prompted grid operators to accelerate energy storage deployments for system reliability[5].
Germany Approves Laws to Accelerate Renewable Expansion and Launches Carbon Storage Framework
Germany’s federal government has approved draft legislation to accelerate renewable energy permitting and streamline project approvals, targeting 80% renewables for domestic power by 2030. In parallel, a new Carbon Dioxide Storage Act establishes a legal framework for carbon capture, utilization, transport, and storage, supporting emissions reductions in hard-to-abate sectors like cement and chemicals[7].
IRS Notice 2025-42 Restricts 5% Safe Harbor for Wind and Solar Facilities
The IRS has limited the use of the 5% Safe Harbor for construction start rules to low-output solar projects (≤1.5 MW) beginning September 2, 2025, with other clean energy sectors like nuclear and battery storage unaffected. Wind and solar projects that started construction before this cutoff or are placed in service by December 2027 will not be impacted, though many developers already rely on alternative compliance methods