Energy Investment

Global energy investment to hit record $3.3 Trillion in 2025 - despite geopolitical and economic headwinds, energy investment is poised to reach an all-time high, with #cleanenergy attracting 2x more capital than fossil fuels. (1) $2.2 trillion will flow into #renewables, nuclear, grids, storage, low-emissions fuels, and #electrification - driven by decarbonization goals, energy security, and cost competitiveness. (2) #Solar leads the charge, set to receive $450 billion, making it the single largest energy investment category. #Battery storage is also booming, surpassing $65 billion. (3) But #grid investments - at $400 billion - are falling behind. Without major upgrades, electricity security could be at risk by the 2030s. (5) Inequality persists: Africa, home to 20% of the world’s population, accounts for just 2% of clean energy investment, with total energy investment declining over the past decade. China remains the global energy leader, investing more than the EU and nearly as much as the EU + US combined. The world is entering a new Age of Electricity. A decade ago, investments in #fossilfuels were 30% higher than those in electricity generation, grids and storage. This year, electricity investments are set to be some 50% higher than the total amount being spent bringing oil, natural gas and coal to market. #CleanEnergy #EnergyTransition #SolarEnergy #BatteryStorage #GridInvestment #GlobalEnergy #EnergySecurity #NetZero #IEA #ClimateFinance #Sustainability #AfricaEnergy https://lnkd.in/dpyEJBYk

[The New Energy Outlook 2025: Clean Tech Surges, But Net Zero Requires More] The world stands at a pivotal energy crossroads: BloombergNEF’s New Energy Outlook 2025 reveals that, even amid policy uncertainty and geopolitical risks, clean energy technologies are accelerating—yet a pure market-driven approach still falls short of climate goals. 🔍 Key Insights: Clean Tech Momentum: By 2050, renewables are projected to supply 67% of global electricity (up from 33% in 2024), while EVs will make up two-thirds of all passenger vehicles, driving a 40% drop in oil demand for transport. Renewables generation is set to double twice between now and mid-century. AI & Data Centers: Surging demand from AI and data centers will require 3,700 TWh of electricity by 2050—nearly 9% of global power use. Meeting this demand will need 362 GW of new capacity by 2035, with renewables and storage providing over half, but fossil fuels still supplying most incremental generation. Emissions Trajectory: Global energy-related CO₂ emissions are expected to peak in 2024 and fall 22% by 2050—yet this path aligns with 2.6°C of warming, not the Paris Agreement’s net zero target. Most abatement comes from clean power, electrification, and efficiency, but hard-to-abate sectors (industry, aviation) lag behind. Regional Divergence: While China, the US, and Europe drive emissions declines, emerging economies in Asia, the Middle East, and Africa will see rising energy demand and investment needs. Gas demand grows 25% by 2050, highlighting divergent regional futures. 🎯 Career Impact: In-Demand Roles: Engineers, project managers, and finance professionals with expertise in renewables, grid flexibility, and digitalization (especially data center energy management) will be highly sought after. Skill Shifts: The rise of AI/data centers and grid integration increases the value of digital skills, power systems modeling, and cross-sectoral knowledge (e.g., energy + IT). Adaptability and systems thinking are critical as the sector evolves. Sector Opportunities: Professionals in oil, coal, or traditional power should consider upskilling in clean tech, energy efficiency, and grid modernization to stay relevant as investments shift. ⚡ CATALYST Reflection: Clarify: Assess your current skills and map them to emerging clean energy and digital opportunities. Acquire: Leverage AI-powered learning tools to upskill in renewables, storage, and digital grid management for future-proof roles. Target: Identify high-growth regions (Asia, MENA, Africa) and sectors (data centers, EV infrastructure) for career moves. 💡 Action Step: Explore certifications in renewable energy, grid flexibility, or data center energy management. Use AI-driven self-assessment tools to benchmark your readiness for transition roles. 🚀 Question: How are you preparing your career for the surge in clean energy and digital power demand?

Excited to share the insightful report "Development Banks and Energy Planning: Attracting Private Investment for the Energy Transition - The Brazilian Case" by IRENA and BNDES. This report offers valuable lessons for emerging markets and developing economies (EMDEs) navigating the complexities of financing the energy transition. Key Takeaways: 1️⃣ The report highlights the vital role of development banks like BNDES in de-risking renewable energy projects, providing access to low-cost financing, and fostering a supportive investment environment. BNDES's success in financing renewable energy projects in Brazil, even surpassing international levels, showcases their impactful contribution. 2️⃣ Brazil's success stems from a well-established energy planning and finance strategy, coordinated by key institutions like the Energy Research Office (EPE), the Ministry of Mines and Energy (MME), and BNDES. 3️⃣ Brazil's well-designed power auctions, coupled with long-term power purchase agreements (PPAs), have proven highly effective in attracting private investment and ensuring a stable revenue stream for renewable energy projects. 4️⃣ The report emphasizes the importance of de-risking mechanisms, such as blended finance, green bonds, and risk mitigation instruments, in attracting private capital to EMDEs. 5️⃣ BNDES's strategic focus on promoting renewable energy sources projects demonstrates their commitment to the energy transition and aligns with Brazil's nationally determined contribution. 6️⃣ BNDES's financial support has not only driven the deployment of renewable energy but also fostered the development of a robust domestic supply chain, particularly in the wind energy sector, creating jobs and boosting local economies. 7️⃣ The report underscores the importance of having qualified staff in energy planning and development finance institutions to design effective strategies, manage complex projects, and provide tailored financial solutions. Challenges: ✴️ Attracting private investment to EMDEs remains a challenge due to higher perceived risks and the competition from mature markets. ✴️ Investing in less mature low-carbon technologies carries higher risks, requiring innovative financing structures and public sector support to stimulate private investment. ✴️ The trend towards smaller, decentralized projects presents challenges for traditional financiers. Opportunities: ✳️ These instruments offer promising opportunities for attracting private capital by reducing perceived risks and pooling resources. ✳️ Strong collaboration between governments, development banks, and the private sector is crucial for unlocking the full potential of renewable energy in EMDEs. ✳️ Sharing best practices and providing technical assistance to EMDEs can help them develop effective energy planning and financing strategies. #RenewableEnergy #EnergyTransition #DevelopmentBanks #Investment #Brazil #EMDEs #Sustainability #ClimateChange #IRENA #BNDES #G20 #Decarbonization

VPPs Are All the Rage – But They’re Not Just for Households! ⚡ Virtual Power Plants (#VPP) are once again a hot topic—and for good reason! The focus often falls on aggregating smaller players, like households or small producers, into a unified power source. However, the VPP model is just as relevant for large-scale producers managing a portfolio of Power Purchase Agreements (#PPA) from renewable assets like wind, solar, and storage. By treating renewable assets as an integrated portfolio, substantial value can be unlocked. Additionally, centralized portfolio management helps protect revenue against the volatile effects of renewable-dominated markets Turning Your PPA Bundle into a VPP  Managing a portfolio of PPAs from wind, solar, and storage assets mirrors the process of a “small” VPP. Through technology, these assets can be interconnected which then allows for the optimization across various energy markets, from ancillary services to bilateral PPAs. This portfolio approach maximizes the efficiency of diverse assets through centralized control, just like a VPP. How to Transform Your PPA Portfolio into a VPP 1. Digitally Connect Your Assets Gain the ability to operate your units as a single entity by connecting them through infrastructure and software, which are readily available and proven effective. 2. Build a Dedicated Commercial Team Start with a revenue management strategy that covers the full spectrum of PPA durations—from long-term contracts to day-ahead markets and ancillary services. This specialized team should structure, price, and execute PPA, hedging, and trading strategies. Most of the execution work can be outsourced as well, but oversight and control over partners remain essential 3. Enhance Data and Analytics Implement systems that offer deep insights into revenue streams, risk profiles, and market changes' impacts. Robust data and analytics are essential to managing a dynamic portfolio. The Benefits of Operating a Large-Scale VPP  A large-scale renewable portfolio managed as a VPP—even one based on long-term PPAs—can drive meaningful savings through reduced Route-to-Market and balancing costs while generating additional revenues. These gains arise from the flexibility to optimize production across all available energy markets. Most importantly, this approach allows producers to participate in future markets and innovative business models, such as offering fixed green shapes (see my recent post on 7/11 PPAs), selling power to smaller but higher-yielding industrial off-takers, and mitigating the impact of negative prices. Transforming a PPA portfolio into a VPP will require a dedicated effort, a clear commitment from top management, and an understanding that the journey will be a longer-term one. Embracing this approach positions renewable portfolios to thrive in the evolving energy landscape while unlocking new potential for sustained growth.

"Financing the Energy Transition: Meeting a Rapidly Evolving Electricity Demand" (2025) by the World Economic Forum highlights the financial, regulatory, and technological challenges of transitioning to a sustainable energy system and presents actionable solutions. Investment Needs and Trends • Annual global energy transition investment must reach $4.5 trillion by 2030 to achieve net-zero emissions by 2050, compared to $2 trillion in 2024. • Developing countries, where demand is highest, receive only 15% of energy transition investments despite their significant requirements. Regional Insights 1. East and Southeast Asia: • China led with $675 billion in 2024, driven by carbon trading mechanisms, feed-in tariffs, and renewable portfolio standards. • Southeast Asia relies on fossil fuels for 72% of electricity, with coal alone providing 46%. Investment in renewables must double to meet decarbonization and growing demand. 2. South Asia: • India’s investment needs are $160-200 billion annually to meet 2030 targets, far above the $68 billion invested in 2023. • Key initiatives include 100% FDI, sovereign green bonds, and renewable purchase obligations. 3. Africa: • Around 600 million Africans lack electricity, hindering economic and social development. • North Africa requires $25.7 billion annually to meet climate goals but achieves only 23% of this investment need. 4. Europe: • The EU spent $360 billion in 2023, investing $10 on clean energy for every $1 on fossil fuels. • Annual investment must double to €813 billion by 2030, with €41 billion needed yearly for grid modernization. 5. North America: • The US invested $300 billion in 2023, supported by the Inflation Reduction Act’s $370 billion and the Infrastructure Investment and Jobs Act’s $550 billion. • Challenges include grid congestion, aging infrastructure, and permitting issues. 6. Latin America: • Energy transition investments reached $68 billion in 2024 but must quadruple between 2026 and 2030 to meet climate targets. • Renewables comprise 60% of electricity capacity, but fossil fuels dominate 65% of the energy mix. Proposed Solutions 1. Blended Finance: • Combining public, private, and philanthropic capital to de-risk projects, particularly in developing countries. • Philanthropic funds can absorb early-stage risks; ENEL has issued €32 billion in sustainability-linked bonds tied to emissions reductions. 2. Government Support: Tax incentives, grants, and performance-based subsidies reduce barriers. For instance, India’s Solar Energy Corporation offers payment guarantees to reduce project risks. 3. Innovative Instruments: Use of sustainable bonds and contracts for difference (CfDs) ensures stable revenue streams and attracts private investments. 4. SME Participation: SMEs drive innovation and local implementation but need financial and regulatory support. India’s insurance security bonds (ISBs) free up liquidity for SMEs.

As #NYCW approaches, it's vital to put the #spotlight on practical and scalable #solutions for #financing the #clean #energy #transition, particularly in #emerging #markets. Our latest report at the Columbia Center on Sustainable Investment, Financing Pathways for the Energy Transition: A Regional Approach, explores seven key #strategies to #unlock #capital and #accelerate clean energy adoption across #regions. From addressing the debt conundrum to leveraging innovative financing mechanisms and expediting private investment, this framework provides actionable insights for policymakers, financial institutions, and investors alike. 📌 Develop a Robust #Regional Clean Energy Strategy 📌 Advance #Structural and Regulatory #Reforms 📌 Address the #Debt #Conundrum 📌 Strengthen #Innovative Financing Mechanisms 📌 Rethink Public Financing and #MDBs 📌 Catalyze #Private #Investment 📌 Accelerate #Technology Advancements These pathways represent a comprehensive approach to overcoming the barriers of high financing costs, regulatory challenges, and the need for debt relief, all tailored to regional realities. As we gather for #NYClimateWeek, it's clear that collaborative, cross-sector efforts are essential to drive the energy transition forward globally. 🌍⚡ For those keen to dive deeper into the intricacies of these strategies and how they can be applied across Africa, APAC, LAC, and Europe, I invite you to explore our report. ➡ https://lnkd.in/diWG4XWu Jeffrey Sachs Lisa Sachs Elena Crete Lucas Didrik Haugeberg Daniel Bernstein Perrine Toledano Andrew Howell Leslie Labruto Jake Hiller #EnergyTransition #SustainableFinance #EmergingMarkets #ClimateAction #FinancingTheFuture #NYClimateWeek

The next wave of growth in solar will not be defined by hardware alone. Modules, batteries, and inverters have matured into reliable technologies. What will truly determine the value of future solar portfolios is how intelligently they are managed. As I shared in a recent Solar Builder Magazine feature, AI is reshaping solar at every stage. It is no longer just about real-time monitoring. It is about forecasting output with greater accuracy, detecting system failures before they escalate, and guiding real-time decisions about when to store, sell, or shift energy. In short, AI is moving solar from being a static generator to an active market participant. At enSights, we see this shift every day. Owners and operators are no longer asking only how much capacity a project can deliver. They are asking how efficiently that capacity can be managed across its lifecycle. That requires turning fragmented data into actionable intelligence. Our platform was built to do exactly that: standardize data, surface insights, and help asset owners capture more value from every megawatt-hour. The solar industry has already proven it can build at scale. The challenge now is ensuring those assets perform at scale, and AI will be the differentiator. https://lnkd.in/dJvTtBVG

𝗠𝗼𝘀𝘁 𝘁𝗮𝘀𝗸𝘀 𝗱𝗼𝗻’𝘁 𝗴𝗿𝗼𝘄 𝘆𝗼𝘂𝗿 𝘀𝗼𝗹𝗮𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀. (But these 4 will.) If you’re a solar company doing solar EPC or selling product or services, you know the grind. You wake up to a flood of emails. Site visits, approvals, pricing negotiations, team issues, logistics—all demanding your attention. By the time you’re done putting out fires, the day’s gone. 𝗕𝘂𝘁 𝗵𝗲𝗿𝗲’𝘀 𝘁𝗵𝗲 𝘁𝗿𝘂𝘁𝗵: most of these tasks keep the business running, not growing. They’re necessary, yes. But they’re maintenance, not momentum. If you want to scale without burning out, shift your focus to the four activities that actually move the needle: 1️⃣ 𝗖𝗿𝗲𝗮𝘁𝗲 𝗱𝗲𝗺𝗮𝗻𝗱. More visibility = more business. But not just any visibility—the right kind. Solar is a trust-driven industry. Whether it’s 𝗟𝗶𝗻𝗸𝗲𝗱𝗜𝗻, 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗲𝘃𝗲𝗻𝘁𝘀, 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽𝘀, 𝗼𝗿 𝘄𝗼𝗿𝗱 𝗼𝗳 𝗺𝗼𝘂𝘁𝗵, you need to be where your buyers are. Consistently sharing insights, projects, and customer wins builds credibility and keeps your pipeline full. 2️⃣ 𝗥𝗲𝗳𝗶𝗻𝗲 𝘆𝗼𝘂𝗿 𝗼𝗳𝗳𝗲𝗿𝗶𝗻𝗴. What makes your solar solution stand out? Is it pricing, warranties, after-sales service, or speed of execution? CXOs who scale focus relentlessly on making their offer better. That could mean bundling financing, optimizing your procurement, or improving system performance. Every edge matters. 3️⃣ 𝗦𝗲𝗹𝗹, 𝗰𝗹𝗼𝘀𝗲, 𝗿𝗲𝗽𝗲𝗮𝘁. Let’s be clear: solar isn’t just about installing panels—it’s about solving energy problems. Whether you’re pitching to homeowners, businesses, or EPCs, closing deals is what keeps the lights on (pun intended). The best solar leaders don’t just wait for leads—they actively sell. 4️⃣ 𝗗𝗲𝗹𝗶𝘃𝗲𝗿 𝗿𝗲𝘀𝘂𝗹𝘁𝘀. Happy customers are your best marketing strategy. A well-executed project today is tomorrow’s referral. CXOs who scale don’t just chase new deals; they ensure every completed project turns into a case study, a testimonial, or a repeat client. Everything else? Systematize, automate, or delegate. 📌 Prioritize growth activities. 📌 Build systems for everything else. 📌 Double down on what drives results. Because scaling isn’t about doing more—it’s about doing what matters. #SolarLeadership #GrowthMindset #SolarCXO #BusinessStrategy #ScaleYourBusiness #SolarEnergy

US cleantech's $8B setback opens doors for European innovation. Here's why energy leaders should be watching both sides of the Atlantic: 🌍 A new report reveals that $8 billion in renewable energy projects were canceled in the US during Q1 2025 alone—more than three times the cancellations from the previous 30 months combined. The culprit? Uncertainty around the future of clean energy tax incentives. While companies like Tesla still announced new investments (including a $200M battery factory in Houston), major projects from Bosch and Freyr Battery have been shelved as the policy landscape shifts. Across the Atlantic, Europe is taking a different approach. The European Commission recently unveiled a €100 billion "Clean Industrial Deal" aimed at supporting made-in-EU clean manufacturing. They're also streamlining permitting for strategic projects and creating mechanisms to direct private capital toward cleantech. This creates an intriguing dynamic for the global energy transition: 1. Market Rebalancing - US project pipelines facing disruption despite strong fundamentals - European regulators offering more predictable investment pathways - Potential for transatlantic partnerships rather than simple relocations 2. Strategic Considerations - Former US energy officials suggest Europe could fast-track companies already vetted by US agencies - Supply chain resilience becoming a critical factor in business planning - Regional approaches to innovation and manufacturing diverging 3. Economic Impacts - Republican districts seeing the highest rate of project cancellations despite receiving 83% of previous investments - European industrial strategy explicitly targeting supply chain localization - Global competition for cleantech manufacturing intensifying For energy professionals, these parallel developments create both challenges and opportunities as the policy landscape evolves on both sides of the Atlantic. Question: How might cleantech companies structure their operations to navigate policy uncertainty while maintaining momentum? What successful strategies have you observed? #CleanEnergy #EnergyPolicy #GlobalMarkets

In 2005, you could run a solar company on speed and hustle. Small crew. Manual scheduling. Paper contracts. It worked because the market was young and expectations were low. Today, it's impossible to grow a solar business this way. → You can't manage jobs from just spreadsheets. → Or let customers have no real-time visibility. → Or ignore the benefits of service revenue. Now, solar companies need specialized departments: → Design teams → Permitting teams → Customer support workflows → Project management systems and so on. In 2025, you have to think like an infrastructure company: 1/ Standardize – Every install, every service visit, every customer touchpoint should follow the same documented process. 2/ Specialize – Dedicated teams for design, permitting, customer support, and service. 3/ Systematize – Tools that integrate workflows so nothing falls between the cracks. 4/ Stay visible – Keep your brand in front of the customer year-round. That’s how you move from just installing systems to running a scalable solar business. — Which of these four is your company best at today, and which needs the most work?