Three Trends for 2025

Energy demand continues to set records

Driven by population growth, economic development, electrification, digitalization and AI, global electricity demand is projected to grow significantly. The International Energy Agency forecasts an increase of 4% in global electricity demand this year alone. This surge in demand requires a considerable amount of new energy infrastructure, presenting immense opportunities for investors in this space.

It 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.

Renewable generation surpasses coal globally

With renewable technologies expected to generate more electricity than coal-fired power plants for the first time, 2025 is set to be a landmark year in the energy transition. Despite potential political headwinds, the outlook for renewable investments remains robust. The key for investors is to maintain a disciplined approach, focusing on long-term fundamentals rather than short-term trends or political impulses.

In a volatile world, energy security is national security

Energy and energy security have become top priorities for leaders worldwide. Many countries are investing in renewables as a key pathway towards energy independence: More countries have sun and wind than hydrocarbon resources. Others will invest in optionality and capillarity in their energy supplies, adding new import options and strengthening grids for both electricity and molecules.