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Global Energy Transition: Milestones, Innovations, and Policy Pathways in 2025

General Report April 30, 2025
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TABLE OF CONTENTS

  1. Summary
  2. Renewable Capacity Milestones in China and India
  3. Infrastructure Innovations Driving the Transition
  4. Policy Measures Fueling an Equitable Transition
  5. Emerging Market Projects and Regulatory Challenges
  6. Sustainability and Cost Challenges in Clean Energy
  7. Setting Industry Standards: Low-Carbon Ratings for Materials
  8. Conclusion

1. Summary

  • As of April 30, 2025, significant strides have been made across global economies and industries in the transition from fossil fuel dependency to sustainable energy systems. Notably, China and India achieved unprecedented renewable energy capacity milestones, indicating a vigorous commitment to renewable technologies. Specifically, China’s wind and solar capacity has surpassed that of coal power for the first time, while India’s solar installations have exceeded 105 GW—both achievements reflecting a shift toward low-carbon energy solutions. These developments are complemented by vigorous infrastructure innovations in hydrogen transport and undersea cable manufacturing, which have received substantial investments signaling a proactive approach to energy demands in these regions.

  • At the same time, policy measures are evolving to accommodate equitable transitions. Local councils in England are advocating for mandatory solar panel installations on new homes, addressing climate goals while aiming to reduce energy costs for households. Indonesia is exploring wealth taxes as a potential funding mechanism for its energy transition, signifying a robust approach to mobilizing resources for renewable investments. However, the landscape is not without its challenges; emerging markets like Nigeria are facing scrutiny over project governance, and South Africa’s Highveld communities are confronting the dire consequences of coal pollution, indicating the need for inclusive and responsive energy policies.

  • Further complicating the scenario, the energy industry navigates sustainability challenges, particularly regarding biomass energy’s self-reporting practices and the impact of U.S. EV tariffs. Recent findings demonstrate a growing concern about the credibility of biomass as a renewable source, while the tariffs threaten the competitive landscape for electric vehicles. Nevertheless, the introduction of the world’s first Low Carbon Ratings system for cement and concrete sets an essential precedent within the construction sector, fostering transparency and accountability in material sustainability while driving a fundamental shift towards decarbonization. Collectively, these advancements and challenges underline the intricate dynamics at play in the global energy transition as of April 2025.

2. Renewable Capacity Milestones in China and India

  • 2-1. China’s wind and solar capacity surpasses coal power for the first time in Q1 2025

  • In a landmark achievement, China’s combined installed capacity of wind and solar power surpassed that of coal power for the first time by the end of March 2025. This milestone was reported by the National Energy Administration and marks a significant advancement in China’s ongoing energy transition toward renewables.

  • Data released showed that as of the end of Q1 2025, China’s installed wind power capacity grew by 17.2% and solar power capacity saw even greater growth at 43.4% year-on-year. With a sharp increase in renewable generation, the share of coal power in China’s total energy landscape decreased, falling below 50%, which indicates a critical shift towards non-fossil energy solutions. Experts predict that as this trend continues, surpassing coal power capacity could become a norm rather than an exception.

  • Investment in the power grid also saw remarkable growth, with an investment of 95.6 billion yuan (approximately $13.19 billion) in Q1 2025, a year-on-year increase of 24.8%. Additionally, investments in grid equipment surged by 59.5%, reflecting the push towards increased digitalization and stability in grid management essential for supporting growing renewable energy inputs.

  • 2-2. India’s installed solar capacity exceeds 105 GW by March 2025

  • As of March 2025, India has made significant strides in its renewable energy sector, achieving a solar photovoltaic capacity of over 105.6 GW. This development accounts for approximately 22.23% of India’s overall installed power capacity and represents a considerable 29.13% increase from the previous year.

  • Despite coal continuing to dominate the energy mix—contributing to approximately 45.28% of total installed capacity—renewable sources now account for 36.27% of the total power supply. This balance indicates India’s commitment to a more sustainable energy future. In total, India’s installed power capacity reached 475 GW, with renewables, particularly solar, playing a pivotal role in diversifying the energy portfolio.

  • The deployment of solar and wind projects is also fostering economic benefits, creating jobs especially in rural regions and enhancing energy security by reducing dependence on imported fossil fuels, thereby insulating the nation from volatile global energy prices. Innovative government programs are facilitating quality control in manufacturing, promoting domestic solar product manufacturing, and supporting a trajectory towards becoming a global leader in clean energy.

  • 2-3. Economic and grid implications of renewable generation milestones

  • The achievements in renewable energy capacity in both China and India have profound implications for economic stability and grid management in these nations. As the share of renewables increases, the necessity for robust energy management systems becomes imperative to ensure consistent and reliable electricity supply.

  • In China, with the projected significant growth in total electricity consumption—expected to reach 10.4 trillion kilowatt-hours (kWh) by the end of 2025—strategies to integrate large-scale renewable generation into the grid are essential. The country is anticipated to enhance its grid capabilities, including upgrades for ultra-high voltage transmission lines and digital technologies, to manage such high energy demand and ensure efficient energy distribution.

  • Similarly, in India, though the transition is underway, managing the integration of renewable sources while maintaining grid stability poses challenges, especially considering the lag in coal's dominance. As renewable technologies improve and deployment expands, there is a pressing need for enhancements in energy storage and grid technology to support ongoing growth and reliability in power supply. Therefore, both nations, despite facing their unique challenges, demonstrate a forward momentum in transitioning towards sustainable energy systems.

3. Infrastructure Innovations Driving the Transition

  • 3-1. RINA-CSM certification for Hyundai Steel’s hydrogen transport plates

  • On April 29, 2025, Hyundai Steel announced a significant achievement in the hydrogen transport sector by obtaining certification from the international organization RINA-CSM for its high-functionality plates. These plates, developed for large-diameter steel pipes used in hydrogen transport, successfully passed rigorous testing to meet ASME B31.12 standards. This certification indicates that Hyundai Steel's offerings have met critical performance and safety benchmarks, making them suitable for high-pressure hydrogen environments. The global recognition of these plates not only enhances Hyundai Steel's competitiveness in the hydrogen infrastructure market but also positions the company favorably as nations transition towards hydrogen as a key energy carrier. With plans to apply these advanced materials to hydrogen piping networks and storage facilities, Hyundai aims to significantly contribute to the global hydrogen economy.

  • 3-2. Groundbreaking of LS GreenLink’s $680 million undersea cable plant in the U.S.

  • On April 28, 2025, LS Cable & System held a groundbreaking ceremony for its new undersea cable manufacturing facility, LS GreenLink, in Chesapeake, Virginia, marking a $680 million investment. This facility will be the largest of its kind in the U.S. and aims to support the increasing demand for high-voltage direct current (HVDC) undersea cables necessary for modern energy grids. The construction encompasses an area of 396,700 square meters, with plans to be fully operational by the first quarter of 2028. LS Cable’s strategy positions this plant as a critical node in the global energy supply chain, catering not only to domestic needs but also extending capabilities to Europe and the Middle East. The initiative is expected to create over 330 jobs in the local community, signalling a boost to the regional economy while addressing pressing energy infrastructure needs.

  • 3-3. Doosan Enerbility’s $100 million fuel conversion project in Saudi Arabia

  • Doosan Enerbility secured a $100 million contract for a significant fuel conversion project at the Yanbu 2 power plant in Saudi Arabia, announced on April 29, 2025. This initiative, targeted for completion by 2028, focuses on transitioning the existing oil-fired power plant to a more sustainable gas-fired system. Key components, including advanced combustion systems and control systems, are to be implemented as part of this conversion. The project is expected to retain the plant's generation capacity of 1,375 MW while reducing carbon emissions by about 25%. This effort not only represents a step towards more sustainable energy generation in Saudi Arabia, but also illustrates Doosan Enerbility's commitment to enhancing its global competitiveness in the sustainable energy sector, with similar projects in the pipeline for countries like Chile and Vietnam.

  • 3-4. AES Corporation’s renewable expansion and growing LNG footprint

  • As of April 30, 2025, AES Corporation continues to reinforce its position in the clean energy sector by expanding its renewable energy generation capabilities and increasing its footprint in the liquefied natural gas (LNG) market. The company completed the construction of 3 GW worth of renewable energy projects, including wind, solar, and energy storage facilities, in 2024. By the end of 2025, AES anticipates adding an additional 3.2 GW to its portfolio. This ongoing expansion is complemented by the retirement of coal-fired units, aiming to lower overall carbon emissions and contribute to a cleaner energy supply. AES’s proactive approach exemplifies its strategic commitment to meeting the rising demand for sustainable electricity, all while navigating challenges posed by fluctuating wholesale electricity prices.

4. Policy Measures Fueling an Equitable Transition

  • 4-1. Local councils’ call to mandate solar panels on all new homes in England

  • As of April 30, 2025, there is a strong movement among local councils in England advocating for the mandatory installation of solar panels on all new homes. The Local Government Association (LGA) has underscored this necessity as part of broader climate action efforts. Currently, only 40% of new homes in England are equipped with solar power systems, a figure that reflects a significant increase over the past year but still falls short of the targets needed for effective climate mitigation.

  • The LGA's reports suggest that mandatory solar panel installations could save households an average of £440 annually on energy bills. They propose not only binding regulations for solar panel installations but also long-term funding to facilitate energy upgrades across the housing stock. Local authorities are being called upon to impose higher energy and climate standards through their planning processes, reflecting a proactive stance to meet national renewable energy targets.

  • 4-2. UK government urged to end building of solar-free new homes

  • In parallel with local council initiatives, there is growing criticism of the UK government's continued allowance of new homes being built without solar panels. The urgency of making solar installations mandatory has been labeled an 'absolute scandal' by various stakeholders, including environmental advocacy groups. While the government plans to advance regulations under the Future Homes Standard, no definitive timeline has been established for these regulations, prompting calls for quicker action on this pressing issue.

  • The LGA has emphasized that integrating solar power into new builds would significantly enhance the UK's ability to meet its climate goals. The current regulatory approach is seen as sluggish, especially in light of the legislative energy initiatives adopted by other EU nations, where policies mandate such installations in new residential constructions.

  • 4-3. Using wealth taxes to fund Indonesia’s energy transition under the Prabowo regime

  • As proposed on April 28, 2025, Indonesia might pivot towards implementing wealth taxes as a strategic funding mechanism for its energy transition under President Prabowo's administration. The recent cuts in budget for the Ministry of Energy and Mineral Resources have sparked discussions about alternative funding sources to sustain Indonesia’s climate commitments and accelerate its transition to renewable energy.

  • A wealth tax targeting the super-rich is suggested as a feasible solution. Reports indicate that such a tax could generate substantial revenue—potentially increasing state income by trillions of IDR annually, which could contribute significantly to Indonesia’s energy transition goals. Studies show that taxing wealth effectively would help alleviate the burdens placed on poorer communities usually impacted by carbon-intensive industries. By instituting a wealth tax, the government could also expedite the early retirement of coal-fired power plants, thus aligning better with the 1.5°C target of the Paris Agreement.

5. Emerging Market Projects and Regulatory Challenges

  • 5-1. Criticism of Nigeria’s ₦10 billion Aso Villa solar project by civic group CHRICED

  • On April 25, 2025, the civil society organization CHRICED vocalized significant concerns regarding the Nigerian federal government's approval of a ₦10 billion solar project at Aso Villa. This initiative, aimed at generating 40 MW of solar power, has faced skepticism in the context of Nigeria's broader energy crisis. CHRICED's Executive Director, Dr. Zikirullahi Ibrahim, highlighted a troubling dissonance between this high-profile investment and the persistent struggles of millions of Nigerians who lack reliable electricity. Despite electoral pledges made during the 2023 campaigns to enhance rural electrification and promote off-grid renewable solutions, progress on these fronts remains lackluster. The juxtaposition of substantial funding directed towards the Aso Villa solar project, while many communities still rely on expensive alternatives and suffer from inadequate energy access, raises questions about governmental priorities amidst widespread energy insecurity.

  • Furthermore, CHRICED noted that the 2025 budget allocates significant funds for operating costs tied to traditional energy sources, including ₦311.09 million for electricity bills and ₦1.99 billion for diesel to power generators at Aso Villa. This pattern of spending indicates a struggle to reconcile clean energy initiatives with ongoing reliance on non-renewable energy, underscoring the urgent need for a more inclusive and responsive energy policy that truly addresses the needs of underserved communities across Nigeria.

  • 5-2. South Africa’s Highveld communities confronting coal pollution impacts

  • A recent report published by groundWork on April 15, 2025, illuminates the severe environmental and health consequences faced by communities in the Highveld region of South Africa due to coal mining pollution. The report details how residents in areas like Phola and Carolina are grappling with significant health issues, including contaminated water supplies and respiratory problems, directly attributable to nearby coal mining operations. The ecological devastation caused by coal mining, as described in the report, includes widespread water contamination and soil degradation, raising alarms about the ongoing legacy of pollution in these communities.

  • The report highlights that a decade after contamination warnings, residents in Carolina continue to struggle with unsafe drinking water and contribute to the rising prevalence of health conditions such as high blood pressure, asthma, and other chronic respiratory diseases. Local residents, including those from the Amandla Community Development, have expressed frustration over the slow pace of remedial action and insufficient governmental response to the ongoing pollution. The situation emphasizes a pressing need for a 'just transition' toward clean energy solutions that not only mitigate environmental harm but also prioritize the health and welfare of affected communities. Advocates emphasize greater involvement of civil society in shaping sustainable energy policies that account for local realities and promote community resilience against the backdrop of industrial pollution.

6. Sustainability and Cost Challenges in Clean Energy

  • 6-1. Concerns over biomass power generators and self-reporting on sustainability

  • The sustainability of biomass power generation has come under heightened scrutiny, particularly regarding the self-reporting mechanisms employed by companies that utilize wood pellets for energy production. A report by the Public Accounts Committee in April 2025 raised significant concerns about whether existing certification schemes adequately ensure that biomass sources are sustainable. Given that biomass energy is categorized as renewable, it is essential for achieving net-zero targets under the UK’s climate goals. The government has invested £22 billion in public subsidies for biomass usage, with a substantial portion allocated to Drax, the country's largest biomass generator. However, the reliance on self-reporting for sustainability verification has been labeled as insufficient, positioning the current framework as potentially ineffective. Questions have arisen regarding the ecological impacts of sourcing biomass from diverse geographical locations, many of which include ecologically sensitive areas. Despite government commitments to strengthen sustainability regulations, there is skepticism on whether these improvements will be realized without a significant overhaul of the monitoring processes.

  • 6-2. Impact of U.S. auto tariffs on cost competitiveness of electric vehicles

  • The introduction of tariffs on electric vehicle (EV) components within the United States has posed critical challenges for the automotive sector, particularly for manufacturers aiming to remain competitive. A report from April 2025 discussed how the current tariff regime, initiated under previous administration policies, could lead to inflated prices across the board, complicating efforts to market EVs effectively. Vehicles like the Tesla Model Y, which utilizes a substantial proportion of locally sourced components, may temporarily benefit by narrowing the cost differential with conventional vehicles. However, this advantage is overshadowed by the rising costs associated with battery production dependency on imported materials, primarily from China. The anticipated rise in prices due to these tariffs could result not only in increased consumer costs but also in significant supply chain disruption, potentially hampering the broader transition to EVs at a critical juncture in their adoption.

  • 6-3. Cost comparison: underground vs. overhead electricity transmission lines in Britain

  • The comparative costs of electricity transmission technologies have been a focal point in the UK's push for an upgraded and decarbonized energy infrastructure. An independent report published in April 2025 revealed that underground electricity cables are, on average, 4.5 times more expensive than traditional overhead lines. This disparity has significant implications given the urgent need to expand transmission networks to accommodate growing energy demands and facilitate the transition to more sustainable energy sources. While the visual and environmental advantages of underground cables may appeal to communities wary of the aesthetic impact of overhead lines, the prohibitive costs and potential supply chain bottlenecks suggest that public preferences might need to be balanced against economic realities. Despite the engineering challenges and increased expenses associated with underground projects, analysts emphasize the necessity of weighing both cost and non-cost factors to arrive at informed decisions regarding infrastructure investments, particularly as Britain moves forward in its climate commitments.

7. Setting Industry Standards: Low-Carbon Ratings for Materials

  • 7-1. Launch of the world’s first Low Carbon Ratings system for cement and concrete

  • On April 25, 2025, the Global Cement and Concrete Association (GCCA) unveiled the world’s first Low Carbon Ratings (LCR) system specifically designed for cement and concrete. This innovative rating system establishes a global standard aimed at evaluating and transparently communicating the carbon footprints of these essential building materials. By utilizing a recognizable grading scale from AA to G, the system facilitates informed decision-making for various stakeholders in the construction sector, including builders, architects, and consumers. The development of this ratings system is particularly crucial as the global demand for sustainable construction practices continues to rise. The LCR system is not only inspired by existing frameworks such as the EU’s Energy Performance Certificates but also integrates guidelines that emphasize transparency and comparability. Thomas Guillot, the Chief Executive of the GCCA, articulated the significance of this rating initiative by noting that cement and concrete are foundational to modern infrastructure—from buildings to roads, necessitating a robust framework for assessing their environmental impact. The system allows for easy adoption by various countries, accommodating local practices while maintaining alignment with global carbon measurement methodologies.

  • In essence, the launch of the LCR system marks a substantial advancement in promoting sustainability within the construction material market. The intention is to empower stakeholders to prioritize lower carbon options, which in turn will stimulate a broader industry shift towards decarbonization. Coupled with the development of Environmental Product Declarations (EPDs), which detail the environmental impacts of materials, the LCR system offers a comprehensive approach to enhancing sustainability in construction.

  • 7-2. Implications for transparency and decarbonization in the construction sector

  • The introduction of the Low Carbon Ratings system carries profound implications for enhancing transparency within the construction sector. By creating a clear and accessible metric for evaluating the carbon emissions associated with cement and concrete, the system fosters a culture of accountability among manufacturers and suppliers. As indicated by industry experts, including Marlène Dance from Bouygues Bâtiment International, a globally consistent carbon rating would be transformative. It equips teams with the knowledge required to manage and reduce their carbon footprints more effectively. Furthermore, this initiative reflects a broader trend towards decarbonization in industries reliant on high-emission materials. As global policies increasingly favor sustainable practices, the LCR system aligns well with national and local efforts to minimize carbon outputs—providing regulatory bodies and policymakers with a tool to enforce environmentally responsible procurement practices. The initial implementation examples, notably in Germany, demonstrate the potential for widespread adoption and adaptation of these ratings to different contexts, promoting a synchronized approach to environmental standards across nations. In conclusion, the Low Carbon Ratings system stands as a vital response to the urgent need for sustainable construction solutions. It not only helps demystify the purchasing process for environmentally conscious consumers but also equips stakeholders with critical data to drive more sustainable practices across the building materials lifecycle.

Conclusion

  • By April 30, 2025, the global energy landscape reflects a tapestry woven from remarkable progress and enduring challenges. The record renewable capacity achieved in China and India signals a scalable model for energy transition that can inspire other nations. Infrastructure investments in innovative areas such as hydrogen transport, undersea cables, and fuel conversion technologies underscore the critical role of innovation in this transformation. Current policy debates around solar mandates and wealth-tax financing illustrate a profound recognition of the necessity for equitable frameworks that ensure sustainability benefits all segments of society.

  • However, the situation remains complex. Emerging markets are grappling with governance issues, and the credibility of renewable energy sources like biomass has raised important questions about environmental integrity. The imposition of EV tariffs poses significant barriers, revealing that financial frameworks and cost structures are pivotal to achieving large-scale sustainability. The establishment of the low-carbon ratings standard for materials, particularly in the cement and concrete sectors, provides a crucial framework for measurement and accountability in the drive toward reduced emissions.

  • Looking forward, a call to action emerges for stakeholders to integrate resilient financing models, enforce transparent standards, and encourage cross-sector collaboration. The path to decarbonization mandates a holistic approach that harnesses technology, policy innovation, and community engagement to accelerate progress. By embracing these avenues, the next phase of the global energy transition can be characterized not only by technology adoption but also by the promotion of social equity, environmental sustainability, and economic viability.

Glossary

  • Renewable Energy: Energy derived from natural sources that are continuously replenished, such as solar, wind, hydro, and geothermal power. By April 30, 2025, significant advancements in renewable energy technologies have enabled major economies like China and India to reach unprecedented capacities, thereby driving the global transition away from fossil fuels.
  • Energy Transition: The global process of shifting from fossil fuel-dependent energy systems to low-carbon, renewable energy solutions. As of April 30, 2025, significant milestones in renewable capacity reflect this transition, indicating a broader commitment to sustainable and equitable energy practices across various nations.
  • Hydrogen Transport: The methods and infrastructure associated with the movement of hydrogen, often used as an energy carrier in the transition to low-carbon energy systems. Recent advancements, such as Hyundai Steel's certification for hydrogen transport plates, signal ongoing innovations in this sector aimed at enhancing safety and efficiency.
  • Undersea Cables: Submarine cables that transmit electricity across bodies of water, pivotal for connecting renewable energy sources to the grid, especially in regions where land-based infrastructure is limited. The groundbreaking of LS GreenLink's undersea cable plant in the U.S. represents a strategic investment in this critical infrastructure as of April 2025.
  • Solar Capacity: The total amount of solar power generation capacity installed in a given area, usually measured in gigawatts (GW). As of March 2025, India's solar capacity exceeded 105 GW, marking a significant achievement amidst its transition towards renewable energy.
  • Wealth Tax: A tax levied on the net wealth of individuals, proposed in Indonesia as a means to finance its energy transition under President Prabowo's administration. Implementing such taxes could provide essential funding to support the country's renewable energy initiatives amid budget cuts.
  • Low Carbon Ratings: A new system launched to evaluate and certify the carbon footprints of materials like cement and concrete, which are critical in construction. Introduced by the GCCA in April 2025, this rating system aims to enhance transparency and accountability in the adoption of more sustainable building practices.
  • EV Tariffs: Tariffs imposed on electric vehicle components, affecting the cost-competitiveness of EVs in the U.S. as of April 2025. These tariffs complicate the market dynamics for electric vehicle manufacturers, impacting consumer prices and the broader transition to electric mobility.
  • Biomass Sustainability: The environmental viability of biomass as a renewable energy source, which is increasingly questioned due to concerns over self-reporting practices in the industry. As of April 2025, scrutiny over the adequacy of sustainability standards highlights challenges in ensuring that biomass energy contributes positively to net-zero goals.
  • Sustainable Energy Systems: Energy systems designed to meet current energy needs without compromising the environment or future generations' ability to meet their needs. Ongoing projects, such as Doosan Enerbility's fuel conversion initiative in Saudi Arabia, showcase efforts to transition traditional energy systems towards sustainability.
  • Environmental Product Declarations (EPDs): Documents that communicate the environmental performance of products, specifically in construction. EPDs help stakeholders make informed choices about sustainable materials, closely linked to initiatives like the Low Carbon Ratings system launched in April 2025.
  • Ultra-high Voltage Transmission Lines: Electricity transmission lines designed to carry high voltages over long distances with minimal energy loss. The growth in renewable energy capacity in China by April 2025 necessitates advancements in these technologies to manage increased energy demands.

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