EP.270 Review of 2025: Insights from the Global Energy Transition with 12 Aurora Experts

Dec 22, 2025

2025 proved to be a pivotal year for the energy sector. The podcast highlights significant US policy changes under Trump that reshaped energy markets. It also dives into the explosive growth of AI and data centers, which now demand electricity on par with major economies. The discussion covers grid reliability concerns, notable blackouts, and regional challenges in energy transitions across countries like Australia and Japan. Insights into global renewable integration and the complexities of energy market design add to the rich tapestry of today's energy landscape.

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INSIGHT

2025: A Stress Test For The Transition

2025 was a stress test year for the energy transition driven by geopolitics, tech leaps and climate extremes.
Richard Howard frames four themes: US policy shocks, AI/data centres, reliability, and renewables integration.

INSIGHT

Tariffs Reshaped Global Energy Flows

Trump-era tariffs and trade shifts materially re‑shaped global energy flows and raised costs for clean tech inputs.
Victor Del Carpio notes LNG volumes rerouted and clean energy deployment slowed by higher component costs.

ADVICE

Reprice Projects After Policy Shifts

Reassess project economics after policy shifts like the One Big Beautiful Bill which sunsets federal tax credits.
Julia Hughes says investors pivot toward thermal where permitting eased and rely on state-level subsidies to keep renewables viable.

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2025 has been a landmark year for the global energy sector and the energy transition, marked by rapid change and significant challenges.

Aurora has brought together the key themes shaping the energy transition into a special end of year report and accompanying podcast – hosted by our Global Research Director, Richard Howard and with contributions from 12 Aurora experts from Aurora’s global network.

Key themes explored are:

US policy changes under the Trump administration
The report delves into the sweeping policy shifts enacted by President Trump’s administration, which have had significant effects on both domestic and international energy markets. Increased trade tariffs, a renewed focus on US energy independence, and the rollback of clean energy incentives have altered investment flows and market dynamics. The analysis explores how these policies have impacted global trade, LNG exports, and the competitiveness of renewables.
The AI boom and data centre expansion
A defining trend of 2025 has been the explosive growth of artificial intelligence and data centre development. Electricity demand from data centres globally now rivals that of a major economy such as Germany, creating both opportunities and challenges for utilities and grid operators. The discussion covers the need for rapid grid expansion, investment in flexible infrastructure, and the implications for renewable energy integration as data centres become increasingly central to power system planning.
Grid reliability amidst climate volatility and renewables buildout
Extreme weather events, ageing infrastructure, and the accelerated deployment of renewables have placed grid reliability at the forefront of concerns. The report and podcast examine major outages and system stress in regions such as Iberia, Australia, and the US, analysing their causes and the responses from system operators and policymakers. It underscores the importance of proactive planning, investment in grid-forming technologies, and the role of flexibility—such as batteries and demand response—in maintaining system stability.
Challenges and solutions for renewables integration
As renewables reach record levels of deployment, new challenges have emerged: negative pricing, grid congestion, and economic curtailment. The report and podcast feature case studies from Europe, Latin America, Japan, and India, illustrating how different markets are addressing these issues through technology, market design, and policy innovation. Solutions discussed include longer duration storage, portfolio optimisation, and reforms to locational signals, all aimed at ensuring the continued success of the energy transition.