Anticipations for energy in 2025 reveal transformative shifts ahead. Political changes in Washington could alter fossil fuel policies, while California stands as a clean energy leader facing federal challenges. New technologies are emerging, including innovations in energy storage like iron-air batteries and quantum computing. The solar sector may experience slowdown amidst past rapid growth, influenced by global policies. Concerns about extreme weather and pandemic threats highlight the urgent need for resilience and preparedness in energy infrastructure.
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Quick takeaways
The U.S. energy landscape is set to undergo significant policy shifts under the new administration, impacting renewable energy deployment and fossil fuel production.
California is positioned to lead in clean energy initiatives, demonstrating resilience against federal rollbacks and ambitious climate goals through innovative policies.
Global geopolitical concerns and extreme weather events are anticipated to challenge energy supply chains, emphasizing the need for resilient infrastructure and international cooperation.
Deep dives
Significant Policy Changes on the Horizon
2025 is expected to bring crucial policy changes in the U.S. energy landscape, particularly following the inauguration of a new administration. The shift in focus from climate policy to increasing fossil fuel production could impact various energy projects. The implementation of the Inflation Reduction Act and its associated regulations will be critical in determining how energy infrastructure unfolds. Key decisions regarding streamlining permitting processes for renewable energy projects will also be vital to achieving faster deployment.
Hydrogen's Future Amid Regulatory Changes
The recent finalization of regulations surrounding the 45V tax credit for low-carbon hydrogen has raised questions about the industry's trajectory. Although some regulations have become more inclusive, the complexity of lifecycle analysis for hydrogen could create slowdowns in project development. As attention turns to hydrogen's role in energy security and applications beyond just emissions reduction, the impact of these regulatory developments will be significant. Observing public and private sector responses to these changes will be crucial for the hydrogen market's growth in 2025.
California's Resilience Against Federal Changes
California is positioned to be a significant player in the energy space as it continues to push for clean energy initiatives despite potential federal rollbacks. Governor Gavin Newsom's recent actions to bolster the state's legal team for climate policy defense highlight California's commitment to its sustainability goals. The state aims to lead in deploying renewable energy technologies like hydrogen, while also maintaining aggressive emissions reduction targets. With an ambitious plan to ban new gasoline-powered vehicles by 2035, California is set to stand firm against conflicting federal policies.
Evaluating Renewable Technologies and Trends
There is a growing concern among experts that the rapid growth of solar power may face challenges in 2025, particularly in the U.S. and China. The potential slowdown in installed solar capacity is linked to regulatory shifts, supply chain issues, and evolving manufacturing standards in China. Additionally, the wind industry faces hurdles related to regulation and infrastructure challenges, prompting a reevaluation of investment in wind projects. However, long-duration energy storage technologies are capturing attention, as they are vital for enhancing grid resilience and accommodating fluctuations in renewable generation.
Geopolitical Risks and Climate Response
Geopolitical concerns, including the potential impact of extreme weather events and global stability, are poised to affect energy strategies in 2025. Events such as natural disasters could disrupt energy supply chains and amplify calls for resilient infrastructure. The growing awareness surrounding climate risks is likely to influence international cooperation on climate measures and funding mechanisms for recovery. Monitoring global responses to these crises will highlight the interdependence of energy systems and climate action strategies in dealing with unexpected challenges.
The people, places and technologies to watch this year.
Host Ed Crooks is joined by regulars Amy Myers Jaffe and Melissa Lott to share their predictions for energy in 2025. They discuss the policy changes expected from Washington under the Trump administration, the crucial role for California as a leader in clean energy, the exciting new technologies that may be launched or ramped up this year, and the political and business leaders who will be shaping our future.
The team also discuss some of the threats and challenges the energy industry could face this year. Amy warns that the wind sector is in trouble; is it really? And what about the wild cards: the unexpected events that could force everyone to reassess their plans? Melissa has concerns about the impacts of extreme weather: how will a warming world affect our lives? As the latest news on bird flu shows, the threat of another deadly pandemic is real; Ed analyses the risks.
It’s going to be another tumultuous year in energy. To help make sense of it, get all the insights and analysis from us here.