Three Trends for 2025: The year ahead in Energy Infrastructure

Three Trends for 2025

From the US and Mexico to Japan and UK, last year brought major elections in many of the largest economies and seismic changes to our world. To end the year, the last molecules of Russian gas flowed through some pipelines to Europe.

The stage is set for 2025 to be an interesting year. To take a look at what lies ahead, you are invited to join our senior experts of our team to discuss Three Trends for 2025: The year ahead in Energy Infrastructure. Watch the full broadcast below.

1. Energy demand continues to set records

Driven by population growth, economic development, electrification, digitalization – and of course AI – global electricity demand is projected to grow significantly over the coming years.

Just to prepare the grids for the energy transition, Europe will need to invest nearly €800 billion in transmission and distribution over the coming decade, as well as nearly €850 billion in solar, onshore wind and offshore wind energy, according to industry research.

Additional demand also creates immense opportunities to optimize energy systems and reduce volatility. New power plants can be built close to data centers and vice versa in order to help match supply and demand. Data centers can also be built in areas of low power prices, increasing demand and reducing volatility in these markets.

2. Amid political headwind, renewable generation surpasses coal globally

This year is to be something of a landmark moment in the energy transition. In 2025 renewable technologies will generate more electricity than coal-fired power plants for the first time, according to many projections.

And yet, in an ever more politically polarized world, with a Trump administration ripping up USD 300bn of support for infrastructure projects in its first days, and elections that could be pivotal for the European project just around the corner, the outlook for renewable investments can seem under threat. Anyone watching the sector for a longer time knows that political winds come and go and investment trends emerge over decades.

Investors like EIP have to take a very disciplined approach: With respect to regulatory risk, our approach involves staying actively and where possible, pre-emptively informed, having the expert internal insight to interpret this information, and exerting influence to effect outcomes.

3. In a volatile world, energy security is national security

Energy and energy security are top of mind for leaders around the world. One recent and colorful example: President Trump declared an energy emergency on his very first day back in the White House. Countries simply have to provide their national industry with affordable and reliable energy that, in many cases, also fits within their decarbonization commitments.

As investors, we are looking for options to play the security theme in a way that creates natural diversification in our portfolios. We do it by finding players building system-critical assets in multiple jurisdictions or grids that connect them.

To learn more about these three trends and their impacts, watch the full broadcast on the topic below or explore more here.

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