World Energy Outlook 2025 Flags Accelerating Clean-Tech Shift
Solar Panels being installed in Pakistan (Image credit X @AmbXieFeng)
New analysis shows global energy demand rising 65% by 2050, while renewables already account for over 90% of new power capacity.
By S JHA
Mumbai, November 15, 2025 — Global energy systems face a decade of sharp demand growth, volatile markets, and rapid technological transition, according to the World Energy Outlook 2025, which outlines long-term and near-term projections for the global energy landscape. The report notes that global energy demand is on track to rise by 65% by 2050—even as policy pressure and market economics pull the world further toward clean energy sources.
A central conclusion is the accelerating pace of renewable-power deployment. More than 90% of new electricity-generation capacity added worldwide is already from renewables, with solar photovoltaics projected to expand most rapidly through 2030. Analysts say this surge is driven by dramatic cost reductions, technological improvements, and maturing supply chains.
At the same time, the report anticipates a period of turbulence in global commodity markets. The energy system has entered a “period of elevated volatility”, reflecting new geopolitical alignments, supply disruptions, and the uneven pace of the clean-tech rollout. The shift toward low-carbon technologies is strengthening energy security in many regions, but it is also altering traditional dependencies, particularly in oil and gas markets.
One of the strongest signals in the 2025 outlook is the scale of investment expected in the coming years. Global energy investment is projected to double by 2030, with clean-energy sectors capturing the bulk of new capital flows. Analysts warn that without sustained policy clarity—especially in developing economies—the investment gap could widen, slowing the transition.
Another notable trend is the forecast for electricity consumption. The report projects that electricity demand will rise 150% by 2050, driven by data centres, digitalisation, electrified transport, and industrial decarbonisation efforts. The expansion of electric-vehicle fleets, heat pumps, and AI-driven technologies will reshape power-system planning across continents.
Despite rapid decarbonisation in the power sector, fossil fuels will continue to play a role. The report highlights that some economies—particularly in Asia—are still expanding gas and coal capacity to meet immediate demand. However, renewables’ falling costs and rising scalability are expected to erode fossil-fuel competitiveness before 2040.
Ultimately, World Energy Outlook 2025 frames the next decade as a defining window for global energy transformation: one shaped by record-breaking renewable investments, region-specific vulnerabilities, and a geopolitical landscape in flux. The world is simultaneously moving toward cleaner technologies and grappling with the instability that accompanies a system in transition.
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