2025 Clean Energy Transformation Wishlist

Written by: Lucas Finco, Adjunct Professor, NYU SPS Clean Energy Certificate Program

Every semester, I talk to students about the remaining tasks in the clean energy transition that they can work towards to succeed in the clean energy sector. I decided to publish these items annually and share my thoughts on what we still need to accomplish to ensure a sustainable energy future for humanity.

So without further ado, here is my wishlist for the clean energy transition in 2025:

1. Onshore wind, solar, storage, and transmission line deployment continues

In 2024, there was great progress in all areas, which is good to be happy about. But we still need more deployment in the coming years.

2. Global fossil fuel use declines

Global oil growth forecasts have been revised down throughout the year, but they are still slightly optimistic. Global natural gas and coal use continue to grow strongly. CO2 emissions have fallen significantly in developed countries, but this is not the case globally. We must stop the growth of fossil fuel use before we can reduce fossil fuel consumption. However, recent comments from some oil and gas majors that exploration investment is declining, driven by economic factors, offer hope that future supply declines are a response to future demand declines.

3. Further deployment of smart grids

The prospect of smart grids that can deliver power in a very dynamic way is still far from being realized. As the share of generation from clean and/or distributed energy sources increases, smarter, more flexible grids will one day become a necessity.

4. More innovation and lower storage costs

Energy storage remains key to the clean energy transition. Costs per kilowatt/kWh still need to come down to enable the deployment we need. Any innovation, like sodium batteries currently being deployed in China, is welcome! I believe that more can be gained by investing in R&D in energy storage.

5. Market-based solutions are better than state intervention

I still believe that market-based solutions are more effective than one-off interventions. Measures such as temporary tax credits, one-off grants, or limited-time low-interest loans only distort the market and can cause demand volatility. Permanent changes to the market that provide transparency and clarity are always preferable to temporary assistance. More clarity on the future of the NEM is also welcome!

6. Confront intermittency, reliability, and curtailment

This may still be my long-term wish, but as a society we need to confront these challenges. A clean energy grid will come with the complexity of renewable generation, and mitigation strategies do exist. We need to confront this. (See the duck curve point below.)

7. Interconnection approval times need to be shortened

The interconnection queue needs to be cleaned up and existing clean energy project proposals implemented.

8. Focus on sustainability

“Clean” and “green” energy are fuzzy terms that are diluted by different uses. Sustainability remains a solid principle worth following. Ask yourself, “Can this activity last forever?” If not, don’t do it. Clean energy resources need to follow sustainable practices and plan for end-of-life and recyclability. Otherwise, we’re just creating more problems that need to be solved in the future.

9. Meet growing power demand

In 2024, there will be growing demand for power from electric vehicles, data centers, and building electrification. As an industry, we were caught off guard by AI-driven data center demand, and we need to step back and recognize that previous forecasts were too low and push for more grid expansion on all fronts.

10. Smart Appliances

Why do we still lack smart appliances? All appliances should have scheduling, Wi-Fi, and energy price displays, not just the most expensive ones. This should be standard for all high-energy-consuming appliances. Will 2025 be the year?

No Longer on the Wish List

Distributed Energy vs. Centralized Energy: This debate seems to be settled for now, and the grid is here to stay. Going off the grid is not realistic for most people right now and in the near future.

Revitalizing American Nuclear Power: Vogtel Unit 3 goes into operation in July 2023, and Unit 4 in April 2024. New nuclear conversion deals announced to provide low-carbon power for data centers. Innovations continue in new reactor designs and sizes, as well as fusion reactors.

Flat-Rate Electricity Distribution: California regulators approved the Flat-Rate Electricity Distribution charge in May 2024, a big step forward in simplifying electricity bills with a more direct cost cause and effect. This easy-to-understand charge will make it easier for consumers to make energy investment decisions. All states should adopt a flat-rate electricity distribution charge.

Net zero load on the duck curve: California reaches net negative load in 2023, with even more net negative load hours in 2024. More states will face this in the future. More transmission and storage are needed.

Government support for clean energy comparable to oil and gas: The IRA has provided a lot of support for the clean energy transition, but more can be done on this front.

Clean energy investment exceeds fossil fuel investment: Globally, this reversed around 2020 according to the International Energy Agency.

A reminder…

I also want to remind everyone that the energy transition is not easy. It will take hard work, perseverance, and a strong strategy to achieve it. Now more than ever, we need to reduce CO2 emissions. Global warming is finally showing its ugly face, and the coming years will bring more challenges in this regard. This is our planet and our responsibility.