The outlook for the power generation sector in 2025 promises a continuation of the energy transition, though there’s plenty of debate about the direction of the industry.Advocates for renewable energy, particularly in the U.S., are concerned about how the incoming Trump administration—with its support for fossil fuels—could impact the growth of clean technologies. Utilities continue to wrestle with regulatory uncertainty, knowing that emissions standards for power plants will likely continue to be in flux, and the permitting process for energy projects will also see more change.Analysts mostly agree that natural gas will be a winner, with more gas-fired power plants being built, and the market for exports of liquefied natural gas (LNG) growing. The U.S., already the world leader in natural gas production, will likely grow its already record output. There’s also widespread agreement that demand for electricity will continue to rise, driven by the need to power artificial intelligence (AI) and data centers. The International Energy Agency recently said it expects global electricity demand will grow by 4% in the coming year.Price VolatilityFinancial experts involved in energy markets expect prices will remain volatile, not only in 2025 but for at least a few years to come. Moody’s Investors Service recently said that power reliability costs associated with increased deployment of renewable energy could rise to $435 billion worldwide by 2030.Nuclear power is expected to continue its resurgence as more countries look to install reactors. Growth, though, likely will be dependent on government support, due to the costs associated with design and development of nuclear technologies.Demand for power, and how to meet the increasing need for energy, were among the topics discussed by executives who in recent weeks have provided POWER with their insight about what to expect from the energy industry in 2025. Energy storage, renewables, supply chains and more were all mentioned as key issues to watch in the coming year.Andrew Tang, vice president, Energy Storage and Optimization for Wärtsilä Energy, told POWER that grid-scale battery energy storage will need to grow to support decarbonization of the power generation sector.“In an effort to reach these goals, (e.g. ambitious climate targets from COP29 and the rapid expansion of AI infrastructure), energy storage projects will continue to grow in size and scope,” said Tang. “The size of energy storage projects has been steadily increasing to the multi-gigawatt-hour scale and will continue to do so next year. Energy storage systems will continue to be increasingly geared towards energy shifting, driven by the ever-growing penetration of intermittent renewable energy generation and the concomitant need to store energy for dispatch in times when supply and demand are mismatched.”Tang continued, “At the same time, dedicated renewables firming requirements are popping up in a diversity of market
Sab. Gen 11th, 2025
