The escalating energy demands of today’s increasingly digital world are pushing the limits of the power grid in the US and elsewhere, and necessitating a faster shift toward sustainable energy solutions.
What does the future hold for the cleantech industry as it leads the charge in addressing these issues in 2025?
Here the Investing News Network explores the implications of rising energy consumption, the role of cleantech innovation in meeting this demand and how government policies could help or hinder the sector.
Clean energy has always been part of the energy transition, but as the artificial intelligence (AI) sector gains traction the importance of green sources of energy is becoming increasingly crucial.
The AI industry’s energy demands are being further amplified by the construction of new chip-manufacturing facilities.
These new facilities, with their substantial energy needs, will increase an already significant strain on existing infrastructure. Demand will necessitate upgrades to the existing power grid and require expansions to accommodate the increased load of multi-year operations.
The source of this additional energy will be a crucial consideration, as a shift towards renewable energy sources will be essential to mitigate the environmental impact of ever-growing energy demands.
“When you think about all the manufacturing investments that are in these Republican districts, it’s not just the manufacturing jobs that matter,” Stokes continued.
“You start to realize that all those investments in making stuff in America, they want to sell that stuff in America too. And in order to sell that stuff in America, they need the other tax credits for deployment.”
In her view, the IRA may turn out to be “a much stickier policy” than many expect.
The proposed tariffs run the risk of provoking retaliatory measures from other countries, including trade barriers. Such a response could escalate into a trade war, with negative consequences for all involved economies.
Sodium-ion batteries, especially if they become commercially viable and cost-effective, could reduce US dependence on China for lithium-ion battery materials and technology.
Sodium-ion batteries offer other advantages such as improved safety, lower costs due to the abundance of sodium and potentially higher energy density compared to traditional lithium-ion batteries.
The cleantech sector is poised for change in 2025, driven by escalating energy demands and the push for sustainability. Advances in nuclear and geothermal energy offer promising solutions, while innovations in battery technology and cooling solutions further support the transition toward a cleaner future.
Overall, the cleantech industry’s trajectory depends as much on policy decisions as it does on technological advancements and the global push for sustainability. Industry leaders’ ability to innovate and adapt will be crucial in shaping a cleaner and more energy-efficient future.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Charbone Hydrogen and Westport Fuel Systems are clients of the Investing News Network. This article is not paid-for content.
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