Big changes are coming to the global energy market in 2025. As AI continues to improve and more economies emerge, the electricity demand is set to rise. This is an important issue that needs attention, especially for anyone in the energy sector trying to understand these quickly changing dynamics.
To solve these problems, companies are changing how they do business. They are using new technologies, buying other enterprises, looking for growth opportunities, and coming up with new ideas. Read on to learn how the utility sector will become more sustainable in the future by examining some massive trends appearing on the horizon.
Energy and Utility Trends to Watch
Explore the leading energy and utility trends anticipated for 2025 below.
Renewable:
Solar
Wind
Hydropower
Other
Energy-Efficiency Trends
Smart Grids
Appliances
Buildings
Energy Storage Trends
Grid-Scale
Residential
Accumulation Technologies
Electric Vehicle Trends
EV Adoption
EV Cell Technology
The Four Pillars of Renewable Energy
The renewable sector’s share is expanding rapidly, so let’s distinguish its four primary subfields to understand it better.
Solar Power
Solar panel technology is improving constantly, and price decreases of more than 40% in the last ten years have increased its adoption. In 2023, 407 GWDC of solar PV capacity came online, totaling about 1.6TW worldwide. This growth indicates a high corporate interest in renewable resources and sustainable plans.
Wind Turbines
The cost of electrical energy from onshore wind has dropped significantly. It was previously estimated at about 80 USD per megawatt-hour (MWh) in 2022, but the current estimate is about 39 USD per MWh. The cost of offshore wind varied between 52 USD and 184 USD per MWh. These costs are expected to decline further with technological innovation.
Hydropower
Hydropower remains the most used type of renewable supply, contributing almost 60% of the sustainable electricity. Scientists are working on different instruments, such as stabilizer fins and air-water injection, to increase performance and combine hydro with wind and solar generators. There is potential to add between 33TWh and 42TWh to industrial processes, reducing costs and emissions. It is also possible to use digital twins for the management and decision-making in this type of plant.
Other Renewable Sources
Renewable energy has a bright future in geothermal, biomass, and wave/tidal sources. Drilling will extend production, biomass conversion will improve density, and tidal and wave designs will address prior costs and environmental problems. To fully realize these advancements, utility leaders have their work cut out with expensive, lengthy research that should ensure that the government and industries cooperate for the best possible outcomes.
Energy-Efficient Trends
Here are the main trends making electricity cheaper and helping avoid adverse environmental impacts:
Smart grid technology
Innovative grid technology is vital in ensuring a reliable supply. Additionally, vendors and consumers benefit from lower supply prices and new renewable sources. From smart meters and other sensors to other automated technologies, this is one of the most promising fields for moving cities to a fully integrated future.
One such advancement is the IEEE 2030.5 communication protocol, which facilitates the connection to and utilization of distributed energy resources (DERs), whether large, small, or aggregated.
However, for smart grids to fully benefit, several barriers, such as the high initial cost, issues related to regulations, and cyber threats, also needed to be solved.
Energy-Efficient Appliances
Most new appliances in the market are electricity-saving models. Today’s fridges use only one-third of the power their counterparts used in 1973, despite the fact they can also hold more items. Other accomplishments include energy-efficient lighting and smart features that adjust consumption.
Appliance replacement programs encourage people to trade their old, inefficient gadgets for new, “greener” ones. These programs often provide rebates and tax credits as incentives and are vital in promoting the described trend and lowering greenhouse gas emissions.
Eco-conscious Buildings
Today’s buildings are getting smarter and greener. Trends like LEED and BREEAM certifications, plus using eco-friendly materials and high-tech systems, are all about cutting down energy use. For example, better insulation helps keep the heat in or out, so users don’t waste energy trying to get their space to the right temperature.
Energy Storage Trends
Here’s what modifications in battery technologies are improving depot capacity, efficiency, and cost, both for the utility-scale and residential end-use.
Grid-Scale Accumulation
Battery storage facilities are essential for renewable resources, grid stability, and energy markets. Production costs remain a significant challenge for utility companies, but they are expected to decrease as technology improves. New technologies like solid-state and lithium-sulfur batteries should make energy storage more effective and affordable. In fact, installations are expected to grow to 1,095 GWh by 2030 globally, mainly in North America, Europe, and China.
Residential Repositories
Solar panels help homeowners conserve power harnessed from photovoltaic rooftops and lightning setups. As production costs go down, these systems will become more common. They connect to smart home appliances and other devices to help manage assets better while providing a backup supply during outages.
Battery Storage Technologies
Besides lithium-ion cells, there are also sand batteries that involve heat reservoirs using sand, and the technology can expand comparatively quickly. Compared with the other products on the market, the aluminum-air accumulators are lighter, and their electric density/capacity is high. Copper-ion solutions consume less material and are being researched as alternatives to conventional lithium-ion units. Graphene ones are characterized by high conductivity and cyclic stability. The future of energy depots will only get better through these new technologies as they focus on sustainability.
Electric Vehicle Trends
The electric vehicle (EV) market is growing quickly. More people are using EVs, battery technology is improving, and charging networks are expanding. The following changes are making mobility better for everyone.
EV Adoption
Electric vehicles are becoming a must-have on the road if the industry is going to hit those 2050 emissions targets. In 2023, global sales jumped 35%, reaching 14 million EVs. By the end of 2024, experts think that number could climb even higher, hitting 17 million EVs, making 20% of total car sales.
According to IEA’s Global EV Outlook 2024, the global market for EVs was worth approximately 618.9 billion USD in 2023 and is projected to reach around 786 billion USD in the current year. Due to increasing environmental awareness, enhanced batteries, and supportive government policies, it might reach 3,877.2 billion USD by the year 2032.
EV Battery Technology
Solid-state, Sodium Ion, and Aluminum Air chargeable units are available now, increasing the market offering and accelerating charging time. As more people drive EVs, recycling old batteries becomes a prominent issue. Companies like Tesla and Redwood Materials are leading the way in figuring out how to recycle and reuse these batteries for other purposes.
Mergers and Acquisitions Help Navigate This Shift
New possibilities for redesign are also formulated around on-site generation, battery storage, and efficiency projects to change and reemerge from the energy shift. Some may sell or acquire various elements of their organizations to match short-term results with long-term environmentalism.
Despite the returns in oil and gas, private equity firms are interested in renewable resources as well. Some of the recent mergers and acquisitions seen in the upstream sector focus on customer and supplier interactions. Subsidies such as IRA law are expected to make the funding of cleaner power sources accessible in the subsequent ten years.
Leveraging Data and Cloud Solutions for Growth
The energy and utilities industry identifies the efficiency and growth agenda with renewable potential and carbon capture technologies that seek to improve customers’ experience through data.
This welcome progress requires new technologies, especially cloud solutions. Respondents in sectors such as utilities, communication services, and IT revealed that 48% of executives are aware of the cloud’s ability to create stakeholder value, according to the PwC 2023 Cloud Business Survey.
To accomplish change management, leaders should discuss possible benefits, such as enhanced control of distributed generation, use of data for better asset performance, and development of new businesses.
Rethinking Business Models to Drive Innovation and Productivity
In today’s fast-moving world, companies rethinking their operational or sales models to stay competitive is just sound business advice. Technology has been the key to boosting productivity and staying innovative for quite some time, but it’s becoming harder and more expensive to keep integrating new tech. According to PwC’s 2023 Emerging Technology Survey, only 7% of businesses feel they’re getting real value from their tech investments, including generative AI.
Many companies rush into innovations without considering implementation or workforce upskilling. Collaborating with tech vendors can help manage costs and provide expertise.
Resilience is essential in the sector to withstand severe weather and cyber threats. PwC’s August 2023 Pulse Survey found that 83% of risk leaders consider large-scale cyber attacks a primary risk.
2025 Focus: Sustainability and Climate Risk Integration
It seems as though utility firms are setting big goals to reduce their carbon footprint or even hit net zero, but getting there takes time. In 2025, leaders in the industry should double down on sustainability and focus on ESG (Environmental, Social, and Governance) practices. This means tracking data, using new technologies to cut emissions, and ensuring climate risks are staples to their business strategies. Clear goals will help them stay on track and meet new SEC reporting rules, all while working on minimizing supply chain impacts.
