Energy Transition in Motion (Week of March 28, 2025)

About 700 gigawatts (GW) of renewable power capacity was added in 2024 to set another annual record as the world’s appetite for energy continued to swell, according to the global energy review released this week by the International Energy Agency (IEA).

In all, the IEA reported global energy demand grew “faster than the average rate over the past decade” at 2.2% last year. The growth was driven by electrification, digitalization, data center expansions and rising temperatures.

All forms of energy saw greater demand. However, renewables—led by solar—accounted for the largest share of growth at 38%. Following renewables were natural gas, 28%; coal, 15%; oil at 11% and nuclear at 8%, according to the report.

“Generation from solar PV and wind increased by a record 670 TWh, while generation from natural gas rose by 170 TWh and coal by 90 TWh,” the IEA said. “In the European Union, the share of generation provided by solar PV and wind surpassed the combined share of coal and gas for the first time. In the United States, solar PV and wind’s share rose to 16%, overtaking that of coal. In China, solar PV and wind reached nearly 20% of total generation.”

Energy demand is expected to continue increasing as the world’s population grows and economies strengthen amid a push toward electrification and lower-carbon energies in parts of the world. The report showed that more than 80% of global energy demand growth came from emerging and developing economies led by China, where demand slowed but still grew, and India. Both countries, however, saw coal use rise due to “intense heatwaves.”

“There are many uncertainties in the world today and different narratives about energy—but this new data-driven IEA report puts some clear facts on the table about what is happening globally,” said IEA Executive Director Fatih Birol. “What is certain is that electricity use is growing rapidly, pulling overall energy demand along with it to such an extent that it is enough to reverse years of declining energy consumption in advanced economies.

The U.S. and EU also returned to growth mode.

Of the fossil fuels, natural gas demand grew the most worldwide, rising by 115 Bcm in 2024 compared with an average of about 75 Bcm annually over the past decade.

“The result is that demand for all major fuels and energy technologies increased in 2024, with renewables covering the largest share of the growth, followed by natural gas,” Birol said. “And the strong expansion of solar, wind, nuclear power and EVs is increasingly loosening the links between economic growth and emissions.”

Here’s a roundup of some other renewable energy news.

Biofuels

Eni, Saipem Extend Biorefining Collaboration Agreement

Eni and Saipem agreed to continue collaborating on efforts to advance biorefining projects on March 27 with the extension of a November 2023 agreement between the two companies.

As part of the extended agreement, Eni said it plans to further develop its biorefining capacity with new initiatives focused on biofuels for aviation, including sustainable aviation fuel (SAF), and for land and sea mobility.

Eni recently awarded Saipem a contract to start detailed engineering and procurement services as well as purchase of critical equipment to upgrade the Enilive biorefinery in Porto Marghera, near Venice, Italy, according to the release. The project aims to boost the facility’s capacity to 600,000 tons per year, up from 400,000 tons per year, beginning in 2027. The companies also plan to add SAF production in 2027.

Energy storage

TotalEnergies to Invest in Six German Battery Energy Storage Projects

TotalEnergies said on March 26 it would invest $172.7 million for six new battery energy storage systems with a total capacity of 221 megawatts (MW) in Germany.

Most of the batteries, the company said, will be supplied by Saft and developed by TotalEnergies affiliate Kyon Energy. The projects are scheduled for commissioning in early 2026.

“The implementation and integration of all these battery projects will allow us to supply our customers with clean firm power, contributing directly to our targeted 12% profitability in this activity,” TotalEnergies CEO Patrick Pouyanné said.

The projects are being pursued as Total takes step to help strengthen the German power market by boosting renewables backed by battery energy storage systems.

Poland’s PGE to Invest About $4.7B in Battery Storage Projects

(Reuters) Polish utility PGE plans to invest about $4.7 billion in battery storage projects, CEO Dariusz Marzec said March 24.

With a growing share of intermittent renewable capacity in the system replacing stable electricity generation from coal, Poland urgently needs to develop battery storage to continue its energy transformation.

“The total value of investment in large-scale energy storage facilities is about 6 billion zlotys,” Marzec told reports, adding that this was for six large projects, with plans to invest a further 12 billion zlotys in smaller facilities across the country.

The company said it plans to build a total of 85 energy storage projects to increase its storage capacity to more than 17,000 megawatt hours, which it says will provide energy for about 2.5 million households.

Hydrogen

Calgary Region Hydrogen Hub Opens in Canada

A hydrogen hub managed by the Transition Accelerator has opened in the Calgary area of Alberta, Canada, bringing together established hydrogen producers and consumers, Calgary Economic Development Ltd. said March 21 in a news release.

The Calgary Region Hydrogen Hub (CRH2) takes shape amid global efforts to establish competitive low and non-emitting industries. The hub will initially focus on airports, heat and power, hydrogen corridors, trains and industrial and municipal fleets, according to the release. “The hub will bring together experts across industries with early potential to anchor a self-sustaining hydrogen economy, working closely with industry partners to coordinate research and initiatives, facilitate application of hydrogen solutions and overcome barriers to hydrogen development,” the release states. “The CRH2 will also serve as a point of connection for Calgary’s hydrogen ecosystem, sharing insights, analytics and inspiration to provide the region with a competitive edge.”

Calgary Economic Development, the Transition Accelerator, Wheatland County, the City of Calgary and Prairies Economic Development Canada are among the hub’s initial members.

US Weighs Funding Cuts to Four Hydrogen Hubs

(Reuters) The U.S. Department of Energy (DOE) is weighing funding cuts to four of seven hydrogen hubs selected under a $7 billion federal program, according to a source briefed on the matter.

The hubs, part of former President Joe Biden’s effort to decarbonize the U.S. economy, are intended to jumpstart the production of “clean hydrogen” and the infrastructure needed to get it to industrial users like steelmakers and cement plants.

Washington has slashed funding for clean energy projects since Trump took office in January. His administration is prioritizing fossil fuel production as part of its “energy dominance” agenda.

The four hubs targeted for cuts include those in the Midwest, Pacific Northwest, California and the Mid-Atlantic, according to a list circulated by the agency. They represent about $4 billion in pledged funding.

Funding would be preserved for hubs in Appalachia, the Gulf Coast and the upper Midwest.

“The Department of Energy is conducting a department-wide review,” a DOE spokesperson said when asked about the list, which was first reported by Politico. “The review is ongoing, and speculation by anonymous sources about the results of the review are just that—speculation.”

The hubs that could have their funding cut would largely serve Democratic states, while the three hubs that would be kept are located in Republican states.

A California hydrogen trade group said the DOE should reconsider pulling funding from the Golden State hub, which is known as ARCHES.

“The many benefits of hydrogen energy—American energy independence, cleaner air for all of us to breathe, and good paying, blue-collar jobs—are not partisan issues,” Teresa Cooke, executive director of the California Hydrogen Coalition, said in a statement. “Projects like ARCHES are already benefiting the U.S. economy and removing funding will only hurt the people of our state, including more than 6 million who supported President Trump in the 2024 election.”

In an emailed statement, ARCHES said it was committed to establishing a hydrogen ecosystem, creating jobs and delivering economic benefits to California residents.

Officials from the other hydrogen hubs did not immediately respond to requests for comment.

RELATED

Aramco Secures 50% Stake in Blue Hydrogen Industrial Gases

Solar

Lightsource BP Brings 180-MW Solar Farm Online in Louisiana

Lightsource BP has begun commercial operations at its 180-MW solar project in St. Landry Parish, Louisiana, the company said March 26.

Called Prairie Ronde, the $170 million solar farm is capable of generating enough electricity to power 31,000 homes, the company said, while abating 231,800 metric tons of carbon emissions annually.

“The Prairie Ronde solar project is a powerful example of domestic energy investment in action,” said Emilie Wangerman, COO of Lightsource BP USA. “Working together with our partners, we are building a more resilient grid with US-made products, supporting underserved communities, creating jobs, introducing homegrown energy solutions and reducing our nation’s dependence on foreign imports.”

The solar farm includes equipment sourced from U.S. manufacturers, such as solar panels from Arizona-based First Solar and smart solar trackers from New Mexico-based Array Technologies, BP said.

ENGIE Adds 900 MW Solar, Storage to Portfolio from Ares Management

ENGIE North America said March 24 it added 900 MW of solar and storage assets from Ares Management Infrastructure to its portfolio, deepening the companies’ partnership.

The assets consist of three solar projects in operation across the Electric Reliability Council of Texas (ERCOT) and Midcontinent Independent System Operator and one co-located battery storage project connected to ERCOT, ENGIE said in a press release.

The addition brings the partnership’s portfolio to 3.7 GW of investment in U.S. generation, the company said.

ENGIE will retain a controlling share in the portfolio and will continue to operate and manage the assets.

ENGIE currently has over 11 GW of renewable production in operation or construction across the U.S. and Canada. Globally, the company has 51 GW of renewables and storage in operation and is targeting 95 GW by 2030.

“The expansion of our relationship with Ares reflects the strength of ENGIE's portfolio of assets and our track record of delivering, operating and financing growth in the U.S.,” said. Dave Carroll, chief renewables officer and senior vice president, ENGIE North America. “The addition of another almost 1 GW of generation and storage to our existing relationship reflects the commitment both ENGIE and Ares have to meeting growing demand for power in the U.S. and continuing to deploy clean energy.”

Wind

Vattenfall to Build Germany’s Largest Offshore Wind Farm

(Reuters) Swedish power utility Vattenfall said on March 25 it has made a final investment decision for two wind farm projects in the German North Sea, Nordlicht 1 and 2, the first of which is expected to become Germany’s biggest offshore wind farm.

Vattenfall said in a statement it had agreed to buy back the 49% stake in the Nordlicht cluster sold to BASF in 2024, while the German chemicals group will receive access to long-term supply of renewable electricity.

Construction for Nordlicht 1 and 2, which will have a total capacity of 1.6 GW, is planned to begin in 2026, Vattenfall said.

Expected to be fully operational in 2028, the two wind farms will be able to produce around 6 terawatt hours (TWh) of electricity per year, equivalent to the electricity consumption of 1.6 million German households.

In related news, BASF on March 25 flagged a non-cash effective disposal loss of around 300 million euros (US$324 million) for its first quarter earnings following the sale of its 49% stake in the Nordlicht cluster to Vattenfall.

Siemens Energy Sells Most of Indian Wind Unit in Latest Revamp

(Reuters) Siemens Energy will sell 90% of its wind turbine business in India and Sri Lanka to an investor group led by the climate investment arm of buyout group TPG, in the latest move aimed at fixing its struggling renewables division.

Siemens Gamesa, Siemens Energy’s loss-making wind turbine division, holds a 30% market share in India but had said it was considering strategic options for the business, citing cut-throat competition.

“It’s a very fragmented and competitive landscape,” Vinod Philip, Siemens Energy’s board member in charge of Siemens Gamesa, told Reuters. “This deal allows us as Siemens Gamesa to tackle the other markets in a more focused manner.”

Philip said the new company could also become a cost-effective Indian supplier to Siemens Gamesa, helping to diversify its global supply chain.

No financial details of the transaction were disclosed.

As part of the deal, Siemens Energy will transfer about 1,000 employees and two manufacturing plants in India to the new entity. About 1,200 of its local staff will not be part of the deal and will remain with Siemens Energy, the company said.

Siemens Gamesa has an installation base of nearly 10 GW in India and provides service to more than 7 GW worth of turbines under long-term agreements, it said, adding the market was expected to add 57 GW of capacity by 2032.

Philip said the focus remained on fixing Siemens Gamesa’s onshore business, which has suffered from a quality crisis around its newer generation 4.X and 5.X turbine models. An updated version of the 4.X turbine has been brought back into the market and Philip said there were “good conversations” with customers in Europe about it.

Hart Energy Staff and Reuters contributed to this report.