Looking ahead: Key themes to watch in the energy transition in 2025
Jan 14, 2025
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As 2025 approaches, renewable technologies and hydrogen's role in decarbonization take center stage. The return of a former president may shift climate policies, impacting global talks and regulations. AI's growing influence raises concerns about increased electricity demand amidst geopolitical tensions. Key themes also spotlight electric vehicles, sustainable aviation fuel, and innovative carbon removal technologies, while addressing energy justice across regions. The landscape is evolving rapidly, making the next couple of years critical for the energy transition.
The return of Donald Trump to the presidency may reshape U.S. energy policies, potentially undermining global climate efforts and favoring fossil fuel companies.
Technological advancements, especially in artificial intelligence, are expected to significantly increase electricity demand, complicating the balance between traditional and renewable energy sources.
Deep dives
The Impact of Political Changes on Energy Policy
The year 2025 is anticipated to be significantly influenced by political changes, particularly with Donald Trump's return to the presidency. His potential policies are expected to shift U.S. energy and climate strategies, including possible exits from international agreements like the Paris Agreement. This shift may embolden fossil fuel companies to revert to traditional practices while scaling back on renewable investments, which might negatively impact global climate efforts. The ramifications of these changes will likely resonate throughout the energy markets and international relations, showcasing the interconnectedness of energy policy and geopolitical dynamics.
Technological Factors Driving Energy Demand
Advancements in technology, particularly artificial intelligence and the growth of data centers, are projected to significantly elevate electricity demand in the coming years. Forecasts suggest that power demand from data centers could increase by 10 to 15% annually until 2030, potentially accounting for up to 5% of global power demand. This increase may reinforce the necessity of keeping traditional energy sources operational while companies simultaneously strive for renewable energy solutions. The conflicting pressures from technological growth and environmental expectations present a complex landscape for energy providers.
Future Industry Events and Energy Discussions
Upcoming industry events are expected to be pivotal in shaping the discussion around energy transition and policy in 2025. Notable gatherings like the International Energy Week in London and the International Summit on the Future of Energy Security will focus on energy security and sustainability amidst rising geopolitical tensions. These events will feature dialogue on renewable energy adoption in developed countries versus continued fossil fuel reliance in emerging economies. The continued monitoring of these discussions will be crucial, as they offer insights into the evolving dynamics of the energy sector.
Energy Evolution is merging with Platts Future Energy, and in this inaugural episode of the new series, hosts Taylor Kuykendall and Eklavya Gupte set the stage for 2025, which looks to be another pivotal year for the energy landscape.
We highlight key topics such as advances in renewable technologies, the critical role of hydrogen in decarbonization, and the evolving policies that will shape global energy markets. We delve into the implications of Donald Trump's return to the presidency, including how policy shifts could affect global climate talks and emission regulations. Importantly, these changes are coming against a backdrop of geopolitical tensions and the ongoing energy transition. We also preview future episodes on the intersection of energy, technology, policy, and market trends, including the rising influence of artificial intelligence and its environmental implications.
The new Energy Evolution will publish on Tuesdays.
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