In 2025, the global energy sector is undergoing a monumental transformation, with renewable energy sources (RES) and hydrogen technologies becoming the cornerstone of strategies for both nations and corporations.
According to Bloomberg, RES now account for 38% of global electricity generation, surpassing coal for the first time, with projections indicating a rise to 40% by 2027 . This shift is driven not only by climate goals but also by economic challenges, including energy security and fossil fuel price volatility.
Rising Investments in RES and Hydrogen
The European Union, despite ongoing expenditures to refill gas storage (€26 billion in 2025 ), is doubling investments in solar and wind energy. A key driver is “green” hydrogen, produced using RES. For instance, Germany aims to become a global leader in this field by 2030, allocating €9 billion to build electrolysis capacities. Meanwhile, China has launched 12 new hydrogen clusters, expected to reduce industrial CO₂ emissions by 15% by 2026 .
Breakthroughs in energy storage, such as high-capacity batteries and pumped hydro, are addressing RES intermittency. Tesla, as reported by the Financial Times, has begun mass production of its Megapack 3.0 stationary storage units, offering 5 MWh capacity—30% more efficient than previous models .
Digitalization of Energy Systems
Artificial intelligence and cloud platforms have become integral to grid management. In the U.S., startup GridX uses machine learning to optimize real-time demand, particularly in regions with high solar generation . In Europe, the adoption of digital twins for power grids has reduced transmission losses by 12%, while predictive analytics systems prevent 80% of potential outages .
Challenges and Geopolitical Factors
Sanctions and trade conflicts have accelerated the search for alternatives to fossil fuels. However, the RES transition faces hurdles:
1. High Infrastructure Costs. Offshore wind farms in the North Sea require €4.5 million per MW of capacity.
2. Shortage of Rare Earth Metals. Demand for lithium and cobalt exceeded supply by 18% in 2025, driving prices up by 25% .
3. Lobbying by Traditional Energy Firms. Shell and BP, despite emission reduction plans, increased investments in oil and gas projects by $10 billion and $5 billion, respectively .
2025 has been a pivotal year for the energy sector. RES and hydrogen technologies are not only gaining market share but also setting new sustainability standards.
However, the success of this transition hinges on balancing innovation, regulatory support, and global cooperation. As The Times notes, “The energy transition is a marathon, not a sprint, requiring patience and strategic planning” .