7 Fastest-Growing Energy Technologies Shaping 2025
Global renewable energy funding will likely hit£1.6 trillion ($2 trillion) in 2024, doubling the investment in fossil fuels. This represents an unprecedented surge in energy technology investments.
New technologies continue to revolutionise the energy sector. Battery storage capacity grew 64% to reach 7.4 GW in 2024. Solar energy installations saw an even bigger jump, 88% to 18.6 GW, which now exceeds hydropower and nuclear capacity. Grid-scale energy storage shows remarkable potential and experts predict it will grow eightfold to reach 80 gigawatts by 2025.
Clean energy jobs are growing twice as fast as the overall economy, creating opportunities throughout the energy sector. As this industry evolution continues, seven emerging technologies will fundamentally change how we generate, store and distribute energy worldwide.
AI-Powered Smart Grid Technologies
AI-powered smart grids represent a radical alteration in energy management systems. AI technologies create a two-way dialogue between utilities and consumers, building an intelligent network that adapts to changes in energy supply and demand as they occur (35).
Smart Grid AI Applications and Benefits
AI algorithms analyse data from sensors across the grid to create predictive models forecasting wear and tear over time. Note that these systems have produced remarkable results. Studies show maintenance costs dropped by 43-56% while unnecessary crew visits decreased by 60-66% (35).
AI-powered smart grids offer these key benefits:
Up-to-the-minute monitoring and automated responses to grid disturbances
Better prediction of equipment failures before they occur
Better integration of renewable energy sources
Advanced cybersecurity through network attack detection
Grid Optimisation and Management Features
AI-driven optimisation has shown big improvements in grid operations. Machine learning models have cut daily energy planning calculation time from 10 minutes to just 60 seconds (36). On top of that, these systems analyse weather patterns, geography, and infrastructure conditions to predict power outages and speed up disaster response (36).
AI-powered sensor networks have improved power output optimisation. Grid operators can spot anomalies and track grid components through up-to-the-minute data analysis. This ensures a quick reaction to grid disturbances (37).
Implementation Costs and ROI Analysis
Smart grid implementation needs a high financial investment. US smart grid implementation costs range between £268.43 billion and £378.02 billion over 20 years (38). Distribution networks need the largest investment - between £183.45 to £269.22 billion. Transmission network costs fall between £65.12 to £71.47 billion (38).
Despite the upfront costs, the returns are compelling. Power outages cost American businesses £119.12 billion each year (39). AI-powered smart grids tackle this challenge through predictive maintenance and automated switching protocols. This leads to less downtime and lower costs.
The Department of Energy sees this potential and has awarded £2.38 billion in grants to various smart grid projects with AI initiatives (36). These investments will improve grid reliability, boost renewable energy integration, and build a more resilient energy infrastructure for the future.
Advanced Energy Storage Solutions
Battery storage technologies are leading energy state-of-the-art developments that reshape the power sector. The global battery market has shown remarkable growth, and storage installations nearly tripled in 2023(40).
Next-Generation Battery Technologies
Advanced lithium-ion batteries still dominate the energy storage world, while new technologies emerge to meet specific market needs. Lithium iron phosphate (LFP) batteries have captured a big share of the market by offering better safety features and longer cycle life (40). These batteries showed impressive cost reductions, and turnkey energy storage system prices dropped 43% in China as of February 2024(40).
Solid-state batteries represent another major step forward. These batteries use solid electrolytes instead of liquid ones and offer:
Grid-scale storage solutions have evolved rapidly, and battery energy storage systems (BESS) now play a crucial role. These systems help store renewable energy and release it when people need it most (42). The UK government believes battery storage technologies could save the energy system up to £40 billion by 2050 (42).
Flow batteries have emerged as a promising option for long-duration storage. These systems store energy in liquid electrolytes inside external tanks, which makes them easy to scale up and last longer (43). Compressed air energy storage and mechanical gravity systems offer alternative solutions for grid-scale applications (42).
Energy Storage Market Growth Projections
The global energy storage market looks set for massive expansion. BloombergNEF predicts a 21% annual growth rate through 2030, reaching 137GW/442GWh (40). China leads global deployment, followed by the United States (40).
Residential batteries drive storage demand in Europe, with Germany and Italy showing the way. Austria, Switzerland, Belgium, Sweden, Spain, and the UK markets are growing fast too (40). Supportive policies across Europe, Australia, Japan, South Korea, and Latin America help push market growth (40).
Lower energy storage system costs have helped fuel this growth. Chinese manufacturers have ramped up LFP battery production, while major companies outside China, including LG Energy Solution, Samsung SDI, Panasonic, and Freyr, are building new facilities for energy storage products (40).
Green Hydrogen Production Systems
Green hydrogen production technologies are changing faster than ever, and green hydrogen is a vital player in the energy sector. Right now, only 4% of global hydrogen comes from electrolysis, and renewable energy produces just 1% (2).
Green Hydrogen Technology Advancements
Electrolysis technology has reached a major milestone in green hydrogen production. Ultra-high efficiency electrolyser systems now reach 98% cell energy efficiency (7). New developments in sulphur dioxide depolarized electrolysis have cut platinum requirements by 80% (8).
Alkaline Water Electrolysis (AWE) leads the way in large-scale production and costs less to invest in and operate (4). This technology works better when combined with varying renewable power inputs.
Production Efficiency Improvements
Green hydrogen production efficiency has improved through several key developments:
Advanced electrolyser designs now work at efficiencies beyond 80% (9)
Platinum loadings dropped from 2 mgPt cm−2 to 0.4 mgPt cm−2 (8)
Optimised electrodes boost hydrogen production rates to 18 mL min−1 (8)
The commercial scene for green hydrogen grows faster every day. The sector needs between 130 to 345 gigawatts of electrolyser capacity by 2030 (10). Therefore, announced projects could reach 49 Mtpa production by 2030 (10).
This growth path is a big deal as it means that we need a compound annual growth rate above 90% from 2024 until 2030 (11). Governments have pledged about £77.45 billion in policy support in the last year to back this expansion (11).
The International Renewable Energy Agency believes green hydrogen could make up 12% of final energy demand by 2050 (2). This goal means expanding electrolyser capacity to 5,500 GW (4), which needs huge investment in infrastructure and production facilities.
The sector faces several challenges. Global hydrogen pipelines stretch only 4,500 km (2). Energy losses during conversion steps mean more renewable capacity is needed upstream (2). However, supportive policies and falling renewable energy costs help stimulate sector growth.
Enhanced Geothermal Systems (EGS)
Enhanced Geothermal Systems (EGS) have transformed renewable energy extraction. These systems now allow us to access heat resources deep underground that we couldn't reach before. The market size reached £1.83 billion in 2024. Experts project it will grow to £4.12 billion by 2037 (3).
EGS Technology Breakthroughs
We focused on improving drilling efficiency and reservoir creation through recent tech advances. Researchers at the Frontier Observatory for Research in Geothermal Energy (FORGE) in Utah have achieved better drilling rates and successful rock stimulation (12).
Modern EGS offers these vital technological advantages:
Horizontal drilling capabilities extend to 3,250 feet
Production wells resist temperatures up to 191°C
Flow systems use rigorous tracer testing for control (13)
This state-of-the-art technology lets EGS work like a massive, long-lasting battery. It stores energy for hours or days and releases it over similar timeframes (14).
Deployment Strategies and Challenges
EGS implementation faces technical and regulatory obstacles. Drilling at extreme depths remains complex with these challenges:
The permitting process creates another major barrier. Project development takes 7-10 years on average (15). Seismic risks worried people at first, but strong protocols now help avoid earthquakes. Teams carefully select sites away from active faults (16).
North America will lead the market with 36% of revenue share by 2037 3. The Asia Pacific region shows the highest growth potential with a projected CAGR of 6.6% (3).
Investment grows steadily in this sector. The U.S. Department of Energy has committed £34.94 million to research and development. The Bipartisan Infrastructure Law provides £66.71 million for four new EGS demonstration projects (17).
Commercial viability keeps improving through cost-reduction strategies. The Enhanced Geothermal Shot initiative wants to cut EGS costs by 90% to £35.74 per megawatt hour by 2035 (12). Lower costs combined with reliable baseload power make EGS a vital part of future energy systems.
Start-up activity has surged, especially in the Asia Pacific region. About 57 geothermal energy start-ups operate there now (3). These companies learn about new applications. They work on mineral recovery from geothermal brines, hydrogen production synergies, and hybrid configurations (3).
Perovskite solar cell technology changes the photovoltaic development landscape with groundbreaking advances that boost efficiency. Scientists found that there was something special about these next-generation solar materials just 15 years ago. Now they work perfectly alongside traditional silicon technology (18).
Perovskite Solar Cell Developments
Perovskite materials stand out because of their unique crystal structure and the way they absorb light. These materials excel at capturing high-energy blue light better than silicon (18).
PSCs (Perovskite Solar Cells) bring several key benefits:
They deliver high efficiency at low production costs
Their film-like design allows for flexible installation
You can install them on curved surfaces and building exteriors
They work better in different light conditions (19)
Efficiency Improvements and Breakthroughs
Scientists have achieved amazing results with tandem solar cells that combine perovskite and silicon materials. These cells reached a world record efficiency of 33.89%(18). Some state-of-the-art technologies in labs have even pushed past 40% efficiency (19).
New tandem solar cells now capture 60% more solar energy (18). This means we need fewer panels to generate the same power, which cuts installation costs and saves space. Scientists managed to keep up an impressive development pace. Single-cell efficiency jumped from 14% to 26% in just a decade (18).
Manufacturing Scale-up Progress
The jump from lab success to commercial production comes with its share of hurdles.
The manufacturing process needs to tackle several key issues:
Quality control becomes tricky when producing large panels. Lab devices usually work great on 1 × 1 cm² substrates, but scaling up isn't simple (1). Scientists have made big strides though. They achieved 24.0% certified power conversion efficiency (PCE) on 1 cm² PSCs (1).
Commercial rollout gains speed now. Oxford PV sold their first batch of new tandem solar panels (18). They solved the puzzle of combining two solar materials into durable, reliable panels. Big manufacturers bet heavily on this technology. First Solar bought Evolar, and Hanwha Q Cells put £79.42 million into perovskite tandem pilot lines (20).
Perovskite tandem cells might hit the market in four years (20). The global perovskite photovoltaic market should reach £9.53 billion by 2035. Market analysts expect a compound annual growth rate of 39% from 2025 to 2035 (21).
Carbon Capture and Storage Solutions
Carbon capture technologies are the lifeblood of industrial decarbonization efforts. Global capacity will reach 1.2 billion tonnes per year by 2035 (22). This growth has altered the map of energy infrastructure development.
Direct Air Capture Technologies
Direct air capture (DAC) represents a breakthrough in carbon removal technology that extracts CO2 straight from the atmosphere. Right now, 27 DAC plants operate worldwide and capture nearly 0.01 Mt CO2 each year (23). The industry plans to build 130 large-scale facilities that could reach 435 million tonnes of annual capture capacity by 2030 (5).
The technology works through these specialised processes:
Atmospheric capture using selective CO2 philtres
Concentration and purification of captured CO2
Permanent underground storage in geological formations (24)
State-of-the-art breakthroughs have pushed the boundaries. Climeworks' Mammoth plant now captures 36,000 tonnes yearly (23). Occidental's Stratos facility will sequester 500,000 tonnes per year when it opens in 2025 (23).
Industrial Implementation Cases
Carbon capture's industrial footprint keeps growing. Today, 45 commercial facilities operate globally with a total annual capture capacity of over 50 Mt CO2 (5). Real-life applications show successful implementations in industries of all types.
Natural gas processing dominates current applications with 65% of operating CO2 capture capacity (5).
The industry expects big growth in multiple sectors by 2030:
Carbon capture's financial picture keeps evolving. Current capture costs vary:
USD 15-25/t CO2 for industrial processes with concentrated CO2 streams
USD 40-120/t CO2 for dilute gas streams like cement production (25)
Government backing plays a vital role in making this technology affordable. The United States has put up £1.7 billion for carbon capture demonstration projects (5). The Netherlands committed £7.3 billion through the SDE++ scheme (5). The European Union has issued £1.5 billion to CCUS projects under the Innovation Fund (5).
Technical breakthroughs help cut costs. The KS-21 amine-based solvent shows lower volatility and reduced environmental impact (26). These advances combined with policy support make carbon capture an increasingly viable solution for industrial decarbonization.
The industry faces some hurdles, especially in building reliable infrastructure. The world has only 4,500 km of hydrogen pipelines (27). All the same, supportive policies and falling operational costs drive sector growth. Storage capacity announcements jumped by 70% in 2023 (5).
Long-Duration Energy Storage
Long-duration energy storage (LDES) technologies revolutionise power systems. These technologies store electricity from days to weeks. The system's role proves vital in supporting renewable energy deployment. Projections show installations will reach 1.5 to 2.5 terawatts of power capacity by 2040(6).
Emerging Storage Technologies
LDES technologies cover various solutions, each with unique purposes.
The current technological landscape includes:
Mechanical storage systems for large-scale applications
Mechanical energy storage systems show great promise for long-term deployment. Their economic viability at scales over 100 MW makes them particularly attractive (28). These systems offer flexibility and let operators expand capacity after the original commissioning (28).
Flow batteries represent another breakthrough in energy storage. The liquid electrolytes in these systems last up to 20 years (29). Honeywell's latest flow battery technology stores and releases energy for up to 12 hours (29).
Grid Integration Capabilities
LDES technologies shine in wind-powered regions and areas where hydropower generation decreases (30). Storage durations of 6-10 hours work best in solar-dominant regions. Wind-dominant areas benefit from 10-20 hour storage assets (30).
Research shows that 20 terawatt hours of storage capacity would deliver remarkable benefits:
92% reduction in energy curtailment
10% decrease in total installed power capacity
75% reduction in transmission deployment
70% lower electricity prices during peak periods (30)
The market response has been enthusiastic. Battery energy storageinvestments exceeded £15.87 billion globally in 2022. Grid-scale deployment made up more than 65% of total spending (31).
Market Adoption Trends
LDES market growth potential looks promising. The market value could reach £140.68 billion by 2044 (32). More than five gigawatts and 65 gigawatt-hours of LDES capacity operate or await deployment (6).
Government backing drives market development. The United Kingdom started a £79.42 million LDES demonstration competition to speed up project commercialization (6). The United States Department of Energy runs a £0.79 billion programme. Their goal aims to cut LDES system costs by 90% within ten years (6).
Adoption rates continue to accelerate. LDES applications should exceed investor hurdle rates by 2025 (6). The market needs between 130 to 345 gigawatts of capacity by 2030 (33).
Regional adoption shows clear differences. North America leads the market share projections for 2024-2030 thanks to:
Economic benefits look substantial. UK government analysis reveals that 20GW of LDES could save £24 billion in electricity system costs by 2050 (34). These findings match broader market projections. Annual additions must grow to nearly 120 GW per year from 2023-2030 to achieve net-zero targets (31).
Conclusion
Seven emerging energy technologies show great promise through 2030. Each breakthrough tackles key issues in the global energy shift. Smart grid AI applications demonstrate 43-56% maintenance cost reductions, while battery storage installations have nearly tripled each year. Green hydrogen's production costs keep falling and experts project a 30-40% decrease by 2025.
Enhanced Geothermal Systems look very promising with a target of 90 gigawatts of installed capacity by 2050. Perovskite solar cells have reached record-breaking efficiencies above 33%. Carbon capture facilities have grown to 130 large-scale operations. Long-duration energy storage projects want to achieve 1.5 to 2.5 terawatts of power capacity by 2040.
These technologies' collective effect creates a clear path toward a green energy future. Government backing remains strong with substantial funding in various sectors. Smart grids receive £2.38 billion, geothermal projects get £66.71 million, and carbon capture initiatives secure £1.7 billion. These investments show growing faith in renewable energy solutions.
Success depends on continued tech advances and smart deployment strategies. Market forecasts through 2030 point to faster adoption rates for all seven technologies. Lower costs and better efficiency support this trend. This shift sets up the energy sector for remarkable growth and offers environmental benefits and economic opportunities in the coming decades.
