S&P: Cleantech Supply Chains Propel Energy Transformation

S&P Global Commodity Insights has released a groundbreaking report on clean energy technology trends for 2025, highlighting significant shifts in the global energy supply chain.
The report predicts a transformative year for the cleantech sector, with investments outpacing fossil fuels for the first time.
Record-breaking cleantech investments
Edurne Zoco, Executive Director of Clean Energy Technology at S&P Global Commodity Insights, states: "S&P Global Commodity Insights forecasts that cleantech energy supply investments, including renewable power generation, green hydrogen production and carbon capture and storage (CCS), will reach US$670 billion in 2025, marking the first time these investments will outpace projected upstream oil and gas spending.
"Solar PV is expected to represent half of all cleantech investments and two-thirds of installed megawatts."
The unprecedented surge in cleantech investments signals a significant shift in global supply chains, with renewable technologies taking centre stage.
Supply chain tensions and rebalancing
Chinese dominance and market dynamics
An oversupply of equipment from China significantly influences the cleantech supply chain landscape, particularly in the solar, wind and battery sectors. While price declines may stabilise in 2025, competition from Chinese manufacturers is expected to keep prices low, reshaping industry pricing dynamics.
However, the report projects a gradual rebalancing of the market: "China's market share in PV module production will decline to 65% and battery cell manufacturing to 61% by 2030."
The shift presents both challenges and opportunities for supply chain managers in the cleantech sector.
Energy storage: A supply chain game-changer
Battery energy storage is becoming crucial for project economics in regions with high renewable energy penetration.
Supply chain strategies must now consider integrating battery storage solutions to enhance project viability and manage price fluctuations.
AI's impact on clean energy supply chains
Clearly, AI is transforming the cleantech sector, particularly in forecasting and grid planning.
Eduard Sala de Vedruna, Head of Research, Energy Transition, Sustainability & Services at S&P Global Commodity Insights, notes: "The new year is not only bringing to the clean energy sector significant transformations that are reshaping energy production and consumption, but it promises to be pivotal for the clean energy sector, with significant advancements in corporate clean energy procurement and the integration of AI in energy management."
AI-powered applications are emerging as critical tools for risk mitigation in energy supply chains, addressing discrepancies between forecast and actual energy generation.
Data centres: Driving clean energy demand
Data centers are anticipated to significantly increase their role in corporate clean energy procurement, with an expectation they will source approximately 300 TWh of clean power annually by 2030.
The trend will have far-reaching implications for clean energy supply chains, particularly in North America.
Decarbonisation and supply chain innovation
The quest for deeper decarbonisation is driving innovation in supply chains. Ammonia is emerging as a key player in low-carbon hydrogen production, while the carbon capture and storage (CCS) sector is expected to secure significant CO2 capture capacity in 2025.
As the cleantech sector continues to evolve, supply chain managers must stay informed about these trends to effectively navigate the complexities of the energy transition. The year 2025 promises to be a pivotal moment in reshaping global energy supply chains, with cleantech investments leading the way.
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