Global solar and wind energy capacity to reach new record in 2025

They will be critical in energising emerging sectors such as data centres.

Renewable energy capacity, particularly solar and wind, is poised for continued growth in the coming year amidst rising demand for emerging sectors, according to Rystad Energy.

“Growth in solar and wind capacity is expected to reach a new record in 2025, adding close to 1,000 TWh [terawatt-hours] of electricity that will cater to some of the increasing demand,” Rystad Energy said.

Rystad Energy said global energy demand is entering a period of accelerated growth fueled by data centres, electric vehicles, and industrial decarbonisation efforts.

Demand from data centres alone are projected to more than double by the end of the decade, reaching 860 TWh. Technology companies are also amongst the largest offtakers in the power purchase agreement market.

To ensure continuous power supply, some companies are looking into additional baseload sources, including agreements to purchase power from existing nuclear plants and growing interest in small modular reactor technologies, Rystad Energy said.