Countries worldwide have made substantial advancements in renewable energy capacity, with innovations in artificial intelligence (AI) and the Internet of Things (IoT) driving profitability. The global renewable energy market is projected to increase from $1.26 trillion in 2025 to $4.60 trillion by 2035, reflecting a compound annual growth rate (CAGR) of 12.48%. This growth signifies a shift towards renewable energy becoming a dominant force in global power markets, independent of government incentives.
A report from the International Renewable Energy Agency (IRENA) released in July revealed that renewables maintained their cost advantage over fossil fuels in 2024. This trend is attributed to technological advancements, competitive supply chains, and economies of scale. The decreasing total cost of investment (COI) and reduced dependence on volatile international fuel markets have made renewables a more attractive option. Furthermore, they provide enhanced energy security and contribute to combating climate change.
Despite these advancements, the sector faces challenges such as trade tariffs, raw material acquisition issues, manufacturing transitions, and permitting delays. As Greg Jackson, CEO of Octopus Energy, noted, “Clean energy exports is hardware, which once a country has bought it, will generate electricity for a decade or two to come.” This statement highlights the long-term benefits of investing in renewable energy infrastructure compared to fossil fuels.
The International Energy Agency (IEA) has consistently indicated that renewable energy is expanding at a faster rate than fossil fuels globally, even in the face of political opposition. According to the IEA’s annual World Energy Outlook, oil demand could peak “around 2030.” The report emphasizes that renewables, led by solar photovoltaics, are growing faster than any other major energy source. António Guterres, Secretary-General of the United Nations, stated, “Clean energy is smart economics – and the world is following the money.”
Countries of varying sizes are increasingly turning to solar and other small-scale renewables to achieve energy independence and provide electricity to under-served areas. A notable development occurred on November 18, when Canadian renewable energy developer Cordelio Power announced the commencement of commercial operations for its Crossover Wind project in Cross County, Arkansas. This 135-megawatt wind farm represents a significant step for renewable energy in the region, with landowners set to receive over $50 million in lease payments throughout the project’s lifespan, and local taxpayers benefiting from an estimated $950,000 annually.
The International Court of Justice (ICJ) ruled in July 2025 that a clean, healthy, and sustainable environment is a fundamental human right, which could challenge traditional petrochemical interests. Despite increased regulatory incentives, the push for meaningful corporate responsibility continues, particularly in light of a report from Climate Action Against Disinformation (CAAD) highlighting a 267% rise in COP-related misinformation.
On the political front, the US Department of Energy recently announced a restructuring that prioritizes oil and nuclear resources, moving away from initiatives focused on renewable energy and efficiency. This shift aligns with the Trump administration’s broader energy dominance agenda, raising concerns among lawmakers. US Senator Alex Padilla and Representative Sharice Davids led a coalition of 88 lawmakers urging for the protection of electric vehicle investments during the reauthorization of bipartisan surface transportation legislation. This push reflects a commitment to continuing support for clean energy initiatives despite recent changes in federal policy.
The renewable energy sector is at a pivotal moment, as technological advancements and shifting economic paradigms pave the way for a more sustainable energy future. As governments and businesses adapt to these changes, the potential for renewables to reshape the global energy landscape continues to grow.
