On one front at least, it is hard to look ahead to 2025 with optimism. Hopes that climate change can be solved by global political horse-trading were further reined in by a dismal COP29 summit in Baku in November. Donald Trump’s re-election in the US has raised fears about what his return to the White House will mean for green technologies. With carbon emissions continuing to rise, what hope is there for the energy transition?
Amid the gloom, it is easy to lose sight of the fact that some green technologies are now cheaper than fossil fuel alternatives. In Europe, the levelised cost of solar — calculated by spreading required investments over the total energy produced over the equipment’s lifespan — is $64/MWh, thinks WoodMackenzie. The cost of electricity made by burning natural gas is more than twice that. Declining interest rates will benefit capex-heavy renewables more than fossil fuel rivals.