The Future of Renewable Energy Technologies [2026-2030]: Opportunities & Challenges

Executive Summary: Future of Renewable Technologies

• Renewable Energy Market Snapshot: Renewables reached 4448 GW in 2024, while adding 585 GW. Capacity could hit 10.3 TW by 2030. Renewable electricity share is projected to reach 46% by 2030.
• Solar Power
  • Market Trends: China added 260 GW of solar in 2023 and delivered 51% of global solar generation growth. The EU and the US contributed 12% and 11%. China supplies >80% of PV manufacturing.
  • Technological Innovations: Perovskite-silicon tandem cells hit 34.85% efficiency, energy storage integration is enabling gigawatt-scale hybrid systems, and floating PV reached 1 GW.
• Wind Energy
  • Market Trends: Added 117 GW in 2024 and reached 1136 GW. China installed 79.3 GW; Europe added 16.4 GW; the USA turbine rating averaged 3.4 MW (2023).
  • Technological Innovations: 21.5 MW turbines and floating wind farms totaling 278 MW to AI-based monitoring of 28 K turbines and 94% recyclable components.
• Hydro Power
  • Market Trends: Hydro added 24.6 GW (2024) and generation rebounded 10% to 4578 TWh; global capacity totals 1443 GW. Pumped-storage hydropower (PSH) stands at 189 GW with annual additions rising to 6 GW/yr and expected to reach 16.5 GW/yr by 2030.
  • Technological Innovations: Include AI-optimized digital turbines, closed-loop pumped storage, micro systems, fish-safe designs, and hybrid hydro-solar plants.
• Thermal/Geothermal Energy
  • Market Trends: Geothermal capacity reached 16.87 GW (2024) with utilization >75%; market size projected at USD 19.15 billion by 2029. Technical potential exceeds 42 TW at <5 km and 550 TW at 5-8 km; meeting 15% of electricity growth by 2050 needs 800 GW.
  • Technological Innovations: Fiber-optic-enabled EGS, closed-loop and 20 km deep drilling, solar-hybrid and thermal-storage plants, and AI-driven reservoir modeling convert heat into clean, dispatchable energy.
• Bioenergy
  • Market Trends: Added 4.6 GW (2024) vs 3 GW (2023); it supplied 12.1% of total final energy consumption (TFEC) in 2021, with modern bioenergy 5.7%. Modern bioenergy is expected to nearly double from 2023 to 9.5% (2030).
  • Technological Innovations: Bioenergy innovation spans LanzaJet’s 30 M gal/yr sustainable aviation fuel (SAF) production, AI-optimized biogas plants, negative-carbon hydrogen via gasification + capture, and biochar projects.
• Enabling Technologies for Renewable Integration
  • Energy Storage: 2024 added 69 GW, with 12.3 GW installed by the USA. Europe reached 61.1 GWh, including 15.4 GWh in German homes; AI operations & maintenance (O&M) dispatch could save USD 110 B/yr by 2035.
  • Green Hydrogen & Alternative Fuels: Electrolyzers doubled to 1.4 GW (end-2023); low-emissions H2 rose 10% (2024) and may reach 1 Mt (2025); financial investment decisions (FIDs) in 2024 doubled to 3.4 Mt/yr.
  • Grid Integration & Digital Technologies: 59 new microgrids were built for resilience; AI could cut energy-related emissions 5% by 2035; Europe’s heat-pump stock reached 24 million units (2024) despite a 22% sales dip.
• Policy & Investment Landscape:
  • 138 countries now have net-zero pledges covering 79% of the population and 77% of gross domestic product (GDP)-purchasing power parity (PPP).
  • Energy-transition investment topped USD 2 trillion (2024); sustainable debt crossed USD 6 trillion by July 2025.

Global Renewable Energy Market Snapshot

Global renewable power capacity reached around 4448 GW in 2024 to mark a new high. The sector added about 585 GW of renewable energy that year, which represented 92.5% of all new power capacity. It could reach 10.3 TW by 2030. This includes an estimated 6.7 TW of solar power alone.

A 4600 GW increase in renewable capacity is expected between 2025 and 2030, almost double the rate seen in 2019-2024. Solar photovoltaic (PV) power will lead this expansion by making up nearly 80% of the total growth, while wind, hydro, bioenergy, and geothermal sources provide the rest.

In 2023, renewable additions stood at 473 GW and showed a 13.9% increase in total capacity. Solar energy alone accounted for about 346 GW of that growth, while wind power added 116 GW.

Meanwhile, renewables supplied about 30% of global electricity in 2023, and this share rose to around 32% in 2024. Most of this increase came from solar and wind power, which are now the main engines of electricity growth worldwide. This share is expected to reach nearly 46% by 2030.

In early 2025, wind and solar together generated more electricity than coal for the first time. This shift was driven mainly by China and India, where renewable output expanded quickly even as electricity demand grew.

Solar Power: 1.7 Mt PV Waste by 2030

Market Trends & Regional Growth

China, India, the U.S., and the EU are the leading regions driving solar growth. China added around 260 GW of solar PV in 2023, almost three times its 2022 level, and remains the largest contributor to new capacity under its 14th Five-Year Plan framework.

The framework outlines the expansion of renewable power to assist the country in achieving carbon peaking before 2030 and carbon neutrality by 2060. In generation terms, China provided 51% of the world’s additional solar generation in 2023, while the EU contributed 12% and the US 11%.

Further, India’s target of 500 GW of non-fossil capacity by 2030, where solar will make up the largest share, guides new tenders, rooftop programs, and large-scale solar parks. Meanwhile, in the USA and EU, long-term tax credits under the Inflation Reduction Act are supporting large-scale solar deployment.

The EU Renewable Energy Directive (RED III) further strengthens this effort by setting a binding target of 42.5% renewables in the energy mix by 2030.

However, supply chains remain concentrated. China’s share exceeds 80% across polysilicon, ingots/wafers, cells, and modules, and the country was responsible for over 90% of the 2023-2024 increase in global PV manufacturing capacity.

Deployment Challenges

Intermittency is the first constraint. High-solar systems need rapid-response flexibility and storage to keep grids stable as the solar share rises. In the Net Zero Scenario, grid-scale battery capacity expands 35x from 2022 to reach 970 GW by 2030, with 170 GW expected to be added in 2030 alone.

Likewise, end-of-life management is the next pressure point. Global PV waste could reach 1.7 million tonnes by 2030. Moreover, materials security adds another challenge. Silver is still an essential material for high-efficiency solar cells, and rising solar demand is tightening its global supply. In 2023, photovoltaics consumed 142 million ounces of silver.

Additionally, the solar industry’s share of global silver has nearly grown 3x. As a result, manufacturers are developing ways to use less silver and exploring other available materials, like a blend of nickel-doped graphite layer and a bismuth-indium alloy.

Technological Innovations

Next-Gen Solar Cells

Next-generation solar cells are advancing through new materials and hybrid architectures.

For instance, LONGi reached 34.85% National Renewable Energy Laboratory (NREL)-certified perovskite-silicon tandem cell for its tandem cell. While Qcells achieved a 28.6% large-area tandem cell, Oxford PV showcased a 26.9% rooftop module in 2024. Meanwhile, n-type mono-crystalline silicon expanded and accounted for 63% of shipments in 2023, up from just 5% in 2019.

Moreover, Swift Solar raised USD 27 million in 2024 to scale perovskite tandems, and Caelux shipped its first perovskite-coated Active Glass layers in 2025.

Energy Storage Integration

Energy storage integration with solar is transforming PV systems into dispatchable power assets that strengthen grids and maximize output.

For instance, Sungrow deployed hybrid, grid-forming systems that black-start at a gigawatt scale and shift between grid-following and grid-forming modes. Meanwhile, CATL’s 9 MWh TENER Stack container increases energy density and lowers station costs.

Moreover, the integrator Fluence is developing DC-side solar-storage systems like Gridstack Pro to improve energy capture and simplify grid connection. On the distributed side, Budderfly’s virtual power plant model links solar and battery systems to shift energy across sites, cut costs, and stabilize the grid.

Floating & Agrivoltaic Systems

Floating solar or floatovoltaics improve the efficiency, modularity, and adaptability of solar power systems to various water environments.

For instance, DNV led a joint industry program involving over two dozen floating solar players to create the recommended practice standards for floating PV (FPV) system design, construction, and operation.

In China, an open-sea floating solar PV project totaling 1 GW was completed by China Energy Investment Corporation in Shandong Province.

On the other hand, TSE developed rotating solar panels that move throughout the day, shifting shade patterns to aid crops grow while maintaining high power generation levels.

Digital Optimization & AI

AI-based forecasting merges satellite imagery, meteorological predictions, and on-site data to predict sunlight and power generation with precision.

For example, Open Climate Fix’s Quartz Solar uses deep learning to translate cloud movements into short-term yield predictions that allow utilities and traders to balance supply in real time.

Similarly, Solcast provides live and forecasted irradiance data through APIs that energy firms integrate directly into their scheduling software.

In parallel, DNV has developed anomaly-detection systems that learn the normal behavior of equipment and flag irregularities in real time. Likewise, VROC uses image recognition and sensor fusion to spot degradation and contamination on panels.

Recycling & Circular Materials

Recycling solar panels includes recovering valuable components, like glass, silicon, silver, copper, and plastics, from retired panels and reusing them in new modules instead of sending them to landfills.

For instance, 9-Tech developed a thermo-mechanical upcycling process that recovers silver, silicon, copper, aluminum, and glass while consuming less energy and avoiding hazardous waste.

For example, the EUR 8.4 million Photorama project is developing an automated plant to recover over 98% of a solar panel’s materials at more than 98% purity. Likewise, the EUR 4.8 million ReProSolar project aims to build a pilot facility capable of recycling 5000 tons of panels annually.

Spotlighting an Innovator: CPTI

US-based startup CPTI develops perovskite solar technology that converts both indoor and outdoor light into electricity using precision-engineered nanomaterials. Its multilayer photovoltaic design includes optimized electron and hole transport layers, transparent conductive oxide, and a durable metal oxide barrier to enable efficient charge transfer and long-term stability.

Further, the perovskite absorber captures a broad light spectrum to achieve energy conversion efficiency while maintaining flexibility and a thickness below 0.01 mm for integration. Moreover, the technology operates efficiently in low light and uses a low-temperature, recyclable manufacturing process that reduces energy consumption.

Recommendations for Business Leaders

Strategic focus is shifting toward vertical integration, from cell manufacturing to smart grid connection, to secure resilience in solar value chains. Emphasis on high-efficiency photovoltaics, such as perovskite-silicon tandem modules, offers long-term competitiveness.

Expanding investments in energy storage pairing and AI-driven forecasting systems enhances dispatchability and grid alignment. Partnerships with infrastructure funds and local governments strengthen project pipelines in emerging solar economies.

Wind Energy: 1136 GW Capacity Installed in 2024

Market Trends & Regional Growth

In 2024, global wind capacity grew by approximately 117 GW, while raising the world’s total installed capacity to nearly 1136 GW. Of the total, around 109 GW came from onshore wind projects, while about 8 GW of new offshore wind capacity was added to raise the total global offshore capacity to 83.2 GW.

Regionally, Europe installed 16.4 GW of wind in 2024, of which 13.8 GW was onshore and 2.6 GW offshore. It brought Europe’s fleet to 285 GW, with 248 GW onshore and 37 GW offshore. Within this, the EU-27 accounted for 12.9 GW new and 231 GW total.

Meanwhile, China added 79.3 GW of wind in 2024. This is around 60% of global additions, with offshore additions at 6.1 GW.

In the USA, land-based wind additions were 6.5 GW in 2023 to bring the cumulative total to 150 GW. 2024 additions slowed to 5.1 GW, while it is expected to increase to 7.7 GW in 2025 as the pipeline rebuilds.

India’s market also re-accelerated by adding 4.15 GW in FY 2024-25 and guiding to 6-7 GW in calendar 2025.

Rotor Hub and Diameter 2023

Beyond headline capacity, equipment and performance metrics show steady structural gains. In the USA, the average nameplate rating of newly installed land-based turbines reached 3.4 MW in 2023, with continuing growth in rotor and tower size. Likewise, the average rotor diameter topped 133.8 m.

Correspondingly, capacity factors rose over the last decade, with 33.5% fleet-wide in 2023 and 38.2% for recently built plants, despite weather-driven year-to-year swings.

As near-term pipelines drive installations, auction, and construction indicators are critical. 2024’s 56 GW of offshore awards and 48 GW under active build signal stronger delivery post-2026, even as some Western markets reset projects and supply chains.

Deployment Challenges

Costs and financing tightened project economics, especially offshore. The LCOE for a subsidized U.S. offshore wind project rose from USD 77/MWh (2021) to USD 121/MWh (2023). This is about a 60% jump driven by inflation and supply chain bottlenecks.

Policy changes struggle to match rising costs. The UK’s 2023 CfD round received no offshore wind bids. It forced the government to raise the strike price for fixed-bottom offshore projects to EUR 82.34/MWh for 2024 to make them viable. In the USA, Orsted canceled 2400 MW of New Jersey projects in 2023 due to higher interest rates, inflation, and supply-chain delays.

Technical reliability and grid expansion pose further challenges. Offshore cables fail at a rate of 0.003 failures/km/year, meaning a 30% annual chance of at least one failure in a 100 km network. The average repair times are 40 days for inter-array and 60 days for export cables.

Technological Innovations

Next-Gen Turbine Design

Offshore, manufacturers push toward record capacities, with GE Vernova developing 18 MW turbines and Siemens Gamesa testing units of up to 21.5 MW.

Moreover, researchers at the University of Virginia are exploring a 25 MW SUMR concept that uses flexible blades and adaptive materials to reduce loads and mass while increasing output.

At the same time, materials and components undergo reengineering for performance and recyclability. Also, next-generation tapered roller bearings in 15 MW-class turbines provide 25% greater load capacity and 30% lower weight.

Likewise, the Spanish startup Vortex Bladeless is building oscillating towers that generate electricity from vortex-induced vibrations.

Floating Offshore Platforms

By end-2024, about 278 MW of floating wind capacity was operating globally, with 101 MW in Norway, 78 MW in the UK, and 40 MW in China.

One example is Equinor’s Hywind Tampen, which uses spar-buoy foundations in 300 m depths to host 11 x 8.6 MW turbines for offshore energy supply to oil and gas platforms.

Further, single-point, downwind concepts aim to shrink structure and loads. For instance, X1 Wind’s PivotBuoy X30 prototype installed at 50 m depth at PLOCAN validated its weathervaning, single-point mooring approach that reduces steel and simplifies installation.

Smart Predictive Maintenance

ONYX Insight monitors 28 000+ turbines across over 35 countries to offer full-turbine predictive analytics to spot early signs of wear or failure.

Also, Deutsche Windtechnik develops ML-driven software to diagnose faults in turbines. Meanwhile, OdysightAI offers condition-based monitoring and predictive maintenance.

A study using historical SCADA data across 150 turbines with a total of 283 MW managed to predict anomalies up to 2 months before failure during a 12-month live test. Additionally, UAVs equipped with edge intelligence inspect turbines and forecast wind to improve power generation by 44% compared to hour-ahead forecasts, and reduce UAV flight times by 25%.

Hybrid Wind-Solar Systems

As of September 2024, India had about 7.7 GW of such hybrid projects commissioned.

Similarly, Australia’s Kennedy Energy Park of Queensland operates a 50 MW hybrid plant combining 43 MW wind, 15 MW solar, and 2 MW battery storage.

Further, the hybrid control and optimization of systems involves AI forecasts wind and solar in tandem to dynamically shift power to the stronger source. For instance, NREL’s Hybrid Optimization and Performance Platform (HOPP) tool analyzes and optimizes hybrid power plants at the component level.

Advanced Materials & Recycling

Up to 94% of most turbine parts, like foundation, tower, gearbox, and generator, are already recyclable, but rotor blades made of composites remain the hardest to reclaim as they are difficult to separate and purify.

One such innovation in this sector is closed-loop resin recycling. A zero-waste blade research (ZEBRA) project recycled Elium resin and Ultrablade fabrics from decommissioned blades and manufacturing waste, and reformulated them into fresh polymer feedstock for new blades.

Beyond full recycling, Vestas and Stena Recycling collaborated to chemically break down epoxy resin bonds in blades to separate and recycle components.

Spotlighting an Innovator: Windworks

Swiss startup Windworks develops intelligent vertical-axis wind turbine technology that enhances on-site renewable power generation through real-time blade control. Its system continuously adjusts blade orientation using advanced sensors and miniature microcontrollers to capture optimal wind flow and maintain stability in varying wind conditions.

This dynamic control framework improves energy efficiency, reduces mechanical wear, and lowers energy losses from wake effects. The startup’s vertical-axis design operates quietly, adapts to shifting wind directions, and allows denser turbine placement without harming local fauna.

Recommendations for Business Leaders

Next-generation wind projects increasingly depend on advanced materials, modular turbine design, and digital twin maintenance platforms. Prioritizing offshore and hybrid floating wind installations positions portfolios for sustained returns in maturing markets.

Collaboration with maritime logistics and cable-laying partners accelerates scalability and cost control. Integration of hydrogen production at wind sites enhances energy system flexibility and diversifies revenue streams.

Hydro Power: 24.6 GW Added in 2024

Market Trends & Regional Growth

Global hydropower added 24.6 GW in 2024, including 16.2 GW conventional and 8.4 GW pumped storage, and generation rebounded 10% to 4578 TWh to recover from prior drought impacts.

Likewise, the total installed hydropower capacity by country in 2024 totaled 1443 GW worldwide.

Further, PSH totals 189 GW, with annual PSH additions nearly doubling over the past two years. Also, the five-year average is rising to 6 GW/yr versus 2-4 GW/yr in the prior two decades.

Looking forward, the IEA expects more than 154 GW of new hydropower between 2025-2030, and forecasts annual PSH additions to double to 16.5 GW by 2030, driven by flexibility and long-duration storage needs.

Regionally, China leads hydropower growth and is set to deliver over 60% of global PSH expansion through 2030 as grids integrate more variable renewables. At the same time, capacity growth is expected across India, Africa, and Southeast Asia, although hydro’s share in global generation may edge down as overall electricity demand grows faster than hydro deployment.

Additionally, the development pipeline underscores momentum with more than 1075 GW of projects worldwide, including 600 GW PSH and 475 GW conventional.

Deployment Challenges

Modern hydropower projects often take 5 to 15 years from planning to commissioning, largely because of complex environmental, social, and regulatory approvals. Since more than 90% of large hydropower plants historically were built under long-term power purchase agreements, changing market structures without such guarantees increases financial risk.

Additionally, older hydropower plants face component obsolescence, difficulty in replacing turbine runners or control systems, and rising O&M costs.

Also, hydropower is highly vulnerable to climate variability, drought, and reservoir inflow uncertainty. In 2023, global hydroelectric generation fell to a five-year low due to reduced rainfall in major producing regions like China, North America, and India. It forced some regions to increase the use of fossil fuels to fill the gap.

Moreover, in some hydropower systems, sustained output beyond a few weeks becomes problematic when inflows drop. For example, modeling in Sweden suggests reservoirs sustain only 67-92% of installed capacity for a 3-week window under favorable conditions.

Moreover, social and environmental impacts add hurdles. Dam construction often requires resettling communities. It disrupts river ecosystems and fish migration, and sediment accumulation reduces reservoir lifespan. These externalities increase cost, delay approvals, and invite opposition.

Technological Innovations

Small & Micro Hydropower Systems

Under-surface or stealth turbines run just below the water surface to minimize visual and environmental impact. For example, Energyfish is a micro-hydropower concept that operates beneath the surface to harness flow energy with minimal intrusion.

Further, InPipe Energy from the USA developed the HydroXS energy recovery system that turns excess pressure in water pipelines into electricity. In Hillsboro, Oregon, they installed a prototype micro-hydro unit in a pressure-reducing valve bypass and generating power from what would otherwise be wasted energy.

Pumped Storage Modernization

Modular closed-loop pumped storage hydropower, where the upper and lower reservoirs are not natural lakes but built tanks or reservoirs, avoids environmental constraints. These modular systems aim for quicker deployment and lower permitting risk.

Likewise, in submersible pump-turbines and motor-generators, the machinery is placed underwater in the reservoir to reduce civil works and cost. Also, in geomechanical PSH, the surrounding rock’s mechanical strength assists in storing water pressure rather than relying entirely on structural dams.

For example, the Earba Storage Project in Scotland is a new PSH development that exemplifies modern scaling, integrated into national energy storage plans.

Digital Turbine Controls

Digitization of turbines is improving their responsiveness, efficiency, and longevity. For example, the active learning-based optimization of turbine startup sequences offers ML + sensor input to optimize the ramping of turbines for reducing mechanical stress and fatigue.

One study showed a reduction in strain amplitude by 42% using just seven measured startup sequences.

Similarly, in variable-speed hydropower, MPC designs coordinate turbine control with grid-level power electronics so that hydro plants provide fast frequency reserves. For example, Voith Hydro implemented MPC-based digital control logic in its HyCon digital turbine governor to optimize hydropower performance across varying load conditions.

Fish-Friendly & Eco Designs

As hydropower’s environmental impact, especially on fish migration, is a major concern, new turbine and passage designs are being invented that reduce harm. For example, Whooshh Innovations develops fish passage systems that move fish safely around dams using conveyance tubes rather than conventional fish ladders.

Likewise, Natel Energy builds FishSafe turbines to allow fish to pass safely. In tests, they recorded 100% survival for adult rainbow trout passing through their turbines.

Moreover, Optical Waters is testing fiber-optic UV light systems to prevent algae, biofilm, and organisms from growing inside turbine channels or intake piping. This improves flow and reduces maintenance.

Hybrid Hydro-Solar Projects

Hybrid hydro-solar systems combine hydropower with solar photovoltaics (PV) to deliver steady, flexible, and higher-yield renewable energy. This integration allows power production even when sunlight or water flow fluctuates.

Similarly, Ciel & Terre developed the Hydrelio floating solar platform, which is being integrated with existing hydro dams in India, Brazil, and Thailand.

Additionally, smart hybrid control systems are emerging that use AI to coordinate solar and hydro generation dynamically. For instance, Statkraft, through its hybrid optimization system, developed an intelligent control platform that decides when to dispatch hydro or solar power based on grid prices, water inflows, and weather data.

Spotlighting an Innovator: HydroFlow

UK-based startup HydroFlow Energy develops tidal energy technology that converts predictable ocean tides into grid-ready electricity. Its patented TideMaster system uses a bidirectional energy capture framework that harnesses power from both ebb and flow tides to ensure continuous generation regardless of tidal direction.

Further, the captured tidal motion passes through a hydraulic-to-electric transmission system for producing a stable output even under variable marine conditions. Real-time performance control software continuously monitors and optimizes operations to maintain efficiency and reduce maintenance requirements.

Designed with environmental sustainability in mind, the enclosed system operates silently, emits no carbon, and minimizes seabed disruption, protecting marine ecosystems.

Recommendations for Business Leaders

Reinvestment in modernization and hybridization remains essential for maintaining hydropower’s relevance in flexible grids. Integrating digital turbine controls, predictive maintenance, and AI-based reservoir optimization drives both efficiency and environmental compliance.

Adoption of fish-friendly designs and floating solar integration reinforces social license and sustainability credentials. Early engagement with regulators ensures smoother adaptation of legacy assets into multipurpose water-energy systems.

Thermal/Geothermal: USD 19.15 B Market by 2029

Market Trends & Regional Growth

The geothermal power generation sector is expected to reach USD 19.15 billion by 2029, at a CAGR of 11.1%. Moreover, the global geothermal power capacity reached about 16.87 GW by the end of 2024.

Additionally, in 2023, global geothermal capacity had a utilization rate above 75%, compared to less than 30% for wind and less than 15% for solar PV. Currently, 16.17 GW of capacity is operating, with 15.3 GW being the prospective capacity.

Global Geothermal Power Stats

Further, the technical potential for geothermal at depths less than 5 km equals 42 TW of capacity over 20 years, and if deeper from 5-8 km, the potential exceeds 550 TW. Also, the geothermal energy could meet up to 15% of future global electricity growth by 2050, which would require the deployment of up to 800 GW.

Regionally, the USA leads in installed geothermal electricity while holding about 4 GW, and representing 24% of global installed capacity. In 2023, only 0.1 GW of new geothermal capacity was added globally by bringing the total to 14.8 GW.

Deployment Challenges

Drilling represents up to 50% of the capital cost of a 50 MW geothermal plant. Geological uncertainty in permeability, temperature gradients, or fluid availability stalls geothermal projects at the exploration or test drilling phase.

Another technical and operational barrier is induced seismicity and subsurface management. Particularly for EGS, stimulating rock fractures to enhance permeability may trigger small earthquakes while raising public concern and regulatory limits.

Also, material constraints, like corrosion, scaling, and high temperatures in well casing, pumps, and pipes, create maintenance burdens. Moreover, loss of circulation with drilling fluids leaking into faults and fluid chemistry challenges complicate well completion.

Even for lower-temperature or direct-use geothermal, heat transport infrastructure, heat losses over distance, and matching heat supply and demand pose a challenge. Additionally, geothermal district heating systems often struggle with long payback periods, difficult permitting, regulatory inertia, and public acceptance.

Further, policy and financing frameworks often do not support the risk profile of geothermal, making capital harder to attract.

Technological Innovations

EGS

EGS unlocks heat from deep hot rock even where natural geothermal reservoirs don’t exist. A recent innovation includes combining horizontal drilling and distributed fiber-optic sensing to map and stimulate fractures underground.

For example, Fervo Energy uses horizontal wells and fiber-optic temperature or strain sensing inside its EGS reservoirs to monitor flow paths and optimize extraction. Additionally, its Cape Station, an EGS plant unit, uses multilevel horizontal wells to reduce capital risk and speed deployment.

Meanwhile, AltaRock Energy developed a hydroshearing method, which involves injecting cold water plus degradable particles to crack rock and open new flow paths.

Closed-Loop & Deep Drilling Tech

Closed-loop geothermal systems isolate the working fluid in sealed tubing and do not circulate in rock. This avoids issues with permeability or water contamination.

One innovation is designing fully sealed, pressure-driven loops that are installed even in low-permeability rock. For example, Eavor’s Eavor-loop uses a closed-loop of fluid through deep boreholes without needing fractures in the rock.

Another technology is ultra-deep drilling methods. Quaise Energy is developing millimeter-wave gyrotron drilling to vaporize rock at depths of up to 20 km. It enables access to superhot zones deep underground, and minimizes mechanical wear and avoids induced seismicity associated with fracturing.

Hybrid Geothermal Plants

One growing method is solar topping. It includes injecting solar heat into geothermal steam cycles during peak sun hours to increase power output.

The U.S. Geothermal Technologies Office supports hybrid demo projects combining solar + geothermal + reservoir thermal energy storage (RTES) to provide cost-effective, reliable thermal energy in large portions.

One method in such hybrid plants is thermal recharge. Here, surplus renewable electricity is used to heat rock or reservoir zones to make the system a rock battery.

For example, Sage Geosystems demonstrated an earthen battery in Texas, where heat is stored underground for later dispatch.

Digital Reservoir Modeling

ML-based multi-objective optimization frameworks integrate hydrothermal simulations to explore trade-offs, like cost vs heat extraction quickly than brute force simulation.

Likewise, deep learning surrogates include a convolutional neural network (CNN) and a long short-term memory (LSTM) recurrent network. These identify reservoir behavior and drive closed-loop well control for adjusting injection or production dynamically under geologic uncertainty. Also, surrogate-assisted evolutionary algorithms optimize heat extraction strategies in fractured geothermal reservoirs with fewer simulation runs.

Additionally, physics-informed neural networks (PINNs) simulate how heat, water, and pressure move through underground rock formations. These models blend real geothermal physics, like heat transfer, fluid flow, and rock mechanics, directly into the neural network’s training process.

Low-Temperature & Direct-Use Systems

The binary or ORC enables low geothermal temperatures to generate electricity.

For example, Climeon’s HeatPower 300 system uses an ORC that converts low-temperature heat, as low as 75 degrees Celsius, into electricity by circulating an organic fluid with a low boiling point in a closed-loop. Here, heat evaporates the fluid to drive a turbine, then it condenses and recirculates for continuous power generation.

Another method is low-temperature geothermal-driven DAC. For instance, AirMyne develops a DAC approach where its sorbent regeneration only needs 100-130 degrees Celsius heat, which makes it possible to use geothermal heat instead of high-temperature sources.

Spotlighting an Innovator: Green Therma

Danish startup Green Therma develops Heat4Ever, a system that captures thermal energy from deep underground using a closed-loop pipe design. Within this, a working fluid circulates through insulated pipes without interacting with subsurface environments.

As the fluid absorbs heat from hot rock formations, it transfers this energy to the surface through DualVac technology to provide reliable, clean heat for buildings, industries, and district systems.

Moreover, the system uses durable materials to ensure longevity and operational safety. Also, Heat4Ever functions in most terrains and eliminates risks such as fracking, pollution, or groundwater contamination.

Recommendations for Business Leaders

Geothermal’s re-emergence depends on deep-drilling innovations, closed-loop heat extraction, and AI-supported reservoir modeling to unlock new basins at lower risk. Strategic alliances with oilfield service firms leverage subsurface expertise while reducing exploration costs.

Incorporation of geothermal into district heating, industrial process heat, and hybrid solar-thermal grids ensures stronger commercial viability. Investment in low-temperature and co-produced geothermal applications broadens access across diverse geographies.

Biomass/Bioenergy: EUR 27 B Biomethane Investment by 2030

Market Trends & Regional Growth

On a capacity basis, bioenergy rebounded in 2024 with 4.6 GW of additions vs 3 GW in 2023, driven by China and France. Moreover, it supplied 12.1% of the global total final energy consumption in 2021, with modern bioenergy making up 5.7% and traditional biomass 6.4%.

Share of Bioenergy in Total Final Energy Consumption, by End-Use Sector, 2021

Further, modern bioenergy usage, excluding traditional biomass, is expected to nearly double from 4.5% of TFEC in 2023 to 9.5% by 2030. This requires raising the annual growth rate from 2.5% (2010-2023) to 9.3% per year over 2024-2030 in the Net Zero scenario.

In the biomass power generation segment, the trend toward combined heat and power (CHP) is intensifying. That means bioenergy plants that also supply useful heat are capturing more value and improving economics.

Moreover, solid biofuel, which includes wood and pellets, dominates a large share of biomass power feedstocks. In 2024, it accounted for 67.3% of the feedstock share.

Regionally, Europe’s biomethane build-out continues. Installed production capacity reached 7 billion cubic meters (bcm)/yr by end-Q1 2025, up 9% compared to 2024. Moreover, the European market received 22 bcm of biogas and projected EUR 27 billion in private investment for biomethane alone by 2030.

Deployment Challenges

For biomass, one persistent barrier is feedstock supply, logistics, and cost. Securing a stable, sustainable supply of biomass, like agricultural residues, forest by-products, and waste organics, is complex due to seasonality, dispersed sources, transport costs, and quality variability.

Pre-treatment or upgrading, such as drying, densification, pelletizing, and torrefaction, adds cost and energy demands. Small-scale biomass producers find it difficult to absorb these costs.

Another challenge is economic competitiveness and financing. Biomass systems often face higher per-kWh costs than fossil fuels, especially where fossil fuels are subsidized. Moreover, investors shy away due to uncertain policy support, volatile feedstock prices, and long payback durations.

In some cases, biomass subsidies are being rolled back or limited due to sustainability concerns, which adds further investment risk. For example, the UK government reached a new agreement with Drax that halves its biomass power subsidies for 2027-2031.

Drax, Britain’s renewable power generator, supplies around 6% of the UK’s electricity through four former coal units converted to run on biomass with government support until 2027. The deal limits Drax’s operations to a lower load factor and mandates that 100%, instead of the current 70%, of its woody biomass come from sustainable sources.

Technological Innovations

Advanced Biofuels & Biogas

Commercial-scale Alcohol-to-Jet (ATJ) includes converting bio-ethanol, often from agricultural or waste biomass, into drop-in SAF. LanzaJet’s Freedom Pines Fuels plant in Georgia is one of the first full-scale examples that produces both SAF and renewable diesel from low-carbon ethanol.

In parallel, the UK government recently granted LanzaJet GBP 10 million to accelerate its Project Speedbird facility on Teesside, which aims to produce over 30 million gallons of SAF annually from waste-derived ethanol.

Additionally, electric-heat methane reforming/pyrolysis is emerging. For instance, Molten Industries uses electrically heated methane/biogas pyrolysis to split methane into hydrogen and solid carbon (graphite).

Gasification & Pyrolysis Systems

Non-combustion reforming, high-temperature pyrolysis (HTP), and co-integration with carbon capture yield cleaner syngas, hydrogen, or biocarbon. For instance, Raven SR deploys modular, non-combustion reformers sited at landfills and materials recovery facilities (MRFs) to turn organics into hydrogen or synthetic fuels.

Also, integrated gasification + carbon capture is gaining traction. One such example is that of Mote Hydrogen. It gasifies waste wood to produce hydrogen, and captures CO2 for storage to achieve negative-carbon hydrogen.

Biochar & Carbon Capture Integration

Essentially, heating biomass in low-oxygen (pyrolysis) to produce biochar locks carbon in a stable form, and when co-located with energy capture (heat or power), it yields both climate benefit and utility.

Pressure-assisted pyrolysis, such as Carbo Culture’s Carbolysis process, uses heat and pressure to convert biomass into biochar while generating usable heat for local energy systems.

AI & Automation in Feedstock Management

Digital twin models of anaerobic digestion plants let operators simulate how different feedstock blends or operating parameters affect biogas yields. Moreover, ML and quantum ML model full-scale sludge digestion for faster optimization of hard-to-run feedstocks.

For instance, anessa offers anaerobic digestion software that optimizes feedstock recipes and monitors plants in real time via a digital-twin model. Also, WASE combines biosensors + AI in modular systems to turn industrial wastewater into biogas with less fuss for operators.

Moreover, AMP‘s AI sortation and fully integrated facilities automate high-volume sorting to improve recyclables capture for downstream bioenergy projects.

Hybrid Biomass Systems

Hybrid systems combine biomass or biogas with solar or thermal storage to deliver steady, round-the-clock output. The innovation is in dispatch strategy, fuel-flexible generators, and heat storage coupling that allow the system to switch smoothly between solar, biomass, or stored heat as needed.

One example includes Husk Power Systems. It operates mini-grids in India and Africa that run on solar during daylight and then shift to biomass gasification in the evening.

In industrial or microgrid settings, linear generators that accept both biogas and alternative fuels are being used in combination with solar + storage so that the generator starts whenever solar dips.

Spotlighting an Innovator: AgroCCS

Dutch startup AgroCCS transforms agricultural and vegetative waste into renewable energy and soil-enhancing products. The startup’s system collects biomass from local suppliers and processes it through a pyrolysis plant. Here, organic material is thermochemically decomposed to produce biochar, bio-oil, and carbon-free heat and electricity.

Further, the process captures energy from biomass while locking carbon in solid form to support both decarbonization and soil restoration. The system’s modular design enables restoration of degraded soil to produce carbon credits.

Recommendations for Business Leaders

Competitive advantage in bioenergy arises from feedstock diversification and carbon-negative process integration. Priorities include scaling advanced biofuels from waste streams, adopting AI-enabled feedstock logistics, and embedding biochar carbon removal within existing energy systems.

Partnerships with agriculture, waste management, and carbon credit markets enhance supply resilience and monetization potential. Emphasis on circularity and cogeneration transforms biomass facilities into pillars of sustainable industrial ecosystems.

Enabling Technologies for Renewable Integration

Energy Storage

Global battery storage accelerated in 2024, with 69 GW of battery storage installed, nearly doubling the 86 GW base in 2023. Yet, siting and safety remain barriers in some regions as communities weigh battery energy storage systems (BESS) fire risks against reliability benefits.

Likewise, 205 GWh of storage was deployed worldwide in 2024, up 53% year-on-year, with grid-scale systems accounting for more than 160 GWh and 98% of those using lithium-ion. In the USA, all segments, including grid scale, commercial, and residential, together installed 12.3 GW in 2024, up 33% over 2023.

Further, California’s battery capacity in the CAISO footprint rose from 0.5 GW (2020) to 13 GW (Dec 2024), with over half of this capacity paired with solar/wind.

Moreover, Europe added 21.9 GWh in 2024 and brought its fleet to 61.1 GWh, while Germany’s households alone reached 15.4 GWh of home batteries after installing 580 000 new systems in 2024.

On technology, lithium-ion dominates near-term deployments, but solid-state programs from automakers showcase step-changes in safety and energy density. Toyota targets the first vehicles and key cathode materials entering mass production by 2027.

At the same time, long-duration solutions are scaling from pilots toward multi-GW pipelines to address multi-hour/day balancing. Likewise, AI-driven energy management unlocks up to USD 110 billion/year in O&M and fuel savings across power systems by 2035. This improves storage dispatch, degradation management, and grid integration.

Green Hydrogen & Alternative Fuels

Global installed electrolyzer capacity reached 1.4 GW at end-2023. It nearly doubled year-on-year. Further, low-emissions hydrogen output grew 10% in 2024 and is expected to reach 1 Mt in 2025, but still less than 1% of total supply.

Moreover, in shipping and long-haul, ammonia is emerging as an energy carrier. Orders and announcements totaled 129 ammonia-fueled and 193 ammonia-ready vessels as of Dec 2024, with first deliveries expected 2026-2027.

Importantly, forward cost curves remain central. Baseline analyses anticipate a clean-H2 supply could scale 30x to 16.4 Mt/yr by 2030 under supportive policies.

Grid Integration & Digital Technologies

In 2024, 59 new microgrids totaling 241 MW were commissioned, with builds tied to resilience after extreme-weather events and with mixes of solar-storage-fuel-cell assets.

At the system scale, AI and automation are already changing operations. For instance, AI use across sectors is expected to cut energy-related emissions by 5% in 2035, while considering adoption and data-center load as key variables.

Moreover, generative AI models and eGridGPT-like systems are expected to assist grid operators in decision support, anomaly detection, and control tasks. AI also aids in grid integration of variable renewables by enabling more accurate forecasting and reducing energy wastage.

Further, sector coupling is also visible in end-use numbers. Europe’s installed heat-pump stock reached 24 million units by 2024, even as 2024 sales fell 22% from 2023 highs.

Policy & Investment Landscape

Net-zero pledges now cover 138 countries representing 79% of the global population, 77% of world GDP PPP, and 74% of emissions.

In the USA, the Inflation Reduction Act (IRA) expanded long-term tax credits, like the homeowner Energy Efficient Home Improvement Credit at 30% through 2032, with specific annual caps.

Likewise, in Europe, the European Green Deal Industrial Plan and the Net-Zero Industry Act (NZIA) set a goal for the EU. It is expected to build domestic manufacturing capacity equal to at least 40% of annual deployment needs by 2030, with a complementary aspiration to reach 15% of global production by 2040.

Further, the global investment in the energy transition exceeded USD 2 trillion in 2024 across renewables, electrified transport, heat, grids, and related supply chains. Supply-chain investment itself reached USD 130 billion in 2024 and is projected to reach USD 160 billion in 2025. Additionally, sustainable debt aligned to Climate Bonds’ definitions surpassed a USD 6 trillion cumulative milestone by July 2025.

Also, corporate PPAs continued to expand as a financing mechanism. In 2024, the contracts rose to 36% year-over-year to an estimated 62 GW of clean power signed by corporates globally.

Meanwhile, in the USA, real-economy spending reached USD 276 billion over the four quarters to Q2-2025 across manufacturing and deployment of clean energy, clean vehicles, building electrification, and carbon management, up 8% year-over-year.

Explore the Latest Renewable Energy Technologies to Stay Ahead

Supportive policies, lower technology costs, and strong private investment continue to expand renewable adoption worldwide. The next phase of growth focuses on integration, smarter grids, and circular value chains.

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