Global Surge in Renewable Energy: Key Developments from May to June 2025

Global Renewable Energy Developments (May–June 2025)

Global renewable energy generation experienced significant growth and transformative changes during May and June 2025. A surge in clean energy investments is driving record-high spending: the International Energy Agency (IEA) has projected global energy investment to reach $3.3 trillion in 2025, with approximately $2.2 trillion (about two-thirds) directed toward clean energy technologies, including renewables, nuclear, and storage. According to an IEA report released on June 5, 2025, solar power is expected to attract the largest share, estimated at around $450 billion, making it the foremost area of energy investment.

IEA Executive Director Fatih Birol noted that despite prevailing economic uncertainties, most ongoing renewable projects remain unaffected. While investors may be in a “wait-and-see” mode regarding new projects, “in most areas, we have yet to see significant implications for existing projects.” This optimistic outlook coincides with unprecedented renewable energy expansion globally. For instance, in China, solar and wind power installations surged to record levels during this period. The Guardian reported on June 26, 2025, that China added 198 GW of solar and 46 GW of wind capacity between January and May 2025, generating enough electricity to match the annual output of countries like Indonesia or Turkey. China’s solar capacity has now surpassed 1,000 GW (1 terawatt), accounting for roughly half of the global solar capacity.

Simultaneously, global renewable generation achieved new milestones. In the United States, clean power (from renewables and nuclear) provided a majority of electricity for three consecutive months during spring 2025—March through May—marking the first time this has occurred for such a sustained period. Data showed record outputs from solar farms (up 19% year-on-year in May) and wind and hydro sources, enabling clean energy to outproduce fossil fuels despite slight dips in wind output.

In Europe, officials continued to advance long-term climate targets, with the EU preparing to propose a 2040 emissions goal aiming for a 90% reduction from 1990 levels. Denmark’s Climate Minister Lars Aagaard emphasized that “short-term challenges” such as budget pressures must not “halt the (green) transition in Europe,” reinforcing the necessity of expanding renewables and achieving energy self-sufficiency for both climate and energy security.

Overall, late spring 2025 was characterized by rapid renewable energy growth—particularly in solar and wind—alongside policy discussions and technological advancements.

### Solar Energy Developments (May–June 2025)

**Solar Investment and Capacity Growth:** Solar power continues to lead the global clean energy sector. The IEA’s World Energy Investment 2025 report, released in early June, identified solar as the top investment magnet, projecting a total of $450 billion to be spent on solar in 2025—more than any other energy source. This influx of investment is driving rapid capacity additions worldwide.

In China, the scale of solar installations is particularly impressive. The Guardian reported on June 26, 2025, that China installed 93 GW of new solar capacity in just May 2025, equating to nearly “100 solar panels every second.” These additions brought China’s total solar installations from January to May to an astonishing 198 GW, pushing its cumulative solar photovoltaic capacity above 1 terawatt for the first time. For context, China’s May 2025 solar installations alone could produce enough electricity to power an entire country like Poland or the UAE for a year. This remarkable growth consolidates China’s position as the world’s largest clean energy producer, even as it remains the largest emitter. This development aligns with President Xi Jinping’s strategy of linking climate ambitions with industrial growth in renewables.

Other regions have also expanded solar capacity. In Europe, solar output reached seasonal records due to new installations and favorable spring weather, contributing to an all-time high of 14% of the EU’s electricity mix in May. In the Middle East, countries are investing in solar manufacturing and projects. For example, Egypt began constructing a $200 million solar components factory in the Suez Canal Economic Zone in June 2025, aiming to produce 2 GW of solar panels annually in its first phase. In the United Arab Emirates, the Emirate of Sharjah inaugurated its first utility-scale solar farm (60 MW) in June, designed to supply industrial facilities and feed surplus power into the grid.

**Technological Innovations:** The period saw significant advancements in solar technology, promising to enhance efficiency. Leading solar manufacturers announced new world records in May and June 2025. At the SNEC industry expo in late May, China’s LONGi Green Energy unveiled a crystalline silicon–perovskite tandem solar cell achieving approximately 33% efficiency—a breakthrough for large-area cells. Similarly, JinkoSolar announced a 27.02% efficiency record for its latest N-type TOPCon silicon solar cells. For comparison, mainstream commercial solar cells typically have around 22% efficiency, indicating that future panels could generate significantly more power in the same area. Research institutions also reported progress on perovskite solar technology and flexible cells, maintaining the sector’s trajectory of rapid innovation.

**Policy and Market Developments:** Despite robust growth, the solar sector faced policy uncertainty in the United States during May and June 2025. In late May, the U.S. House of Representatives passed a budget bill that proposed rolling back many renewable energy incentives from the 2022 Inflation Reduction Act. The House bill, dubbed the “one big beautiful bill,” aims to accelerate the expiration of solar and wind tax credits and make them unusable for many projects. It would move the end date for federal clean energy production credits to 2028 and impose strict construction start deadlines, undermining projects that rely on these incentives.

Clean energy leaders warned that this legislation could effectively halt a clean energy production boom in the U.S. Abigail Ross Hopper, president of the Solar Energy Industries Association (SEIA), cautioned that the rollback, if enacted, would “upend an economic boom… that has delivered a historic American manufacturing renaissance, lower electric bills, hundreds of thousands of jobs, and tens of billions of dollars of investments” across the nation. The market reacted swiftly, with shares of major solar firms plummeting following the House vote.

By late June, attention shifted to the Senate’s version of the bill, which proposed an even more abrupt repeal of renewable credits. The Senate draft would end tax credits for wind and solar projects immediately and impose a new excise tax on projects completed after 2027. Moreover, the Senate plan included a tax break for coal production, highlighting a significant policy reversal in the U.S. These developments prompted criticism from the clean energy industry, with experts arguing that the bill represented an “outright energy surrender” to a competitor, as it would hinder U.S. renewables while others advance in clean technology.

Despite these challenges in the U.S., other governments continued to promote solar growth. For instance, Canada announced new projects: on May 7, 2025, New Brunswick’s utility (NB Power) revealed contracts for 452 MW of new wind and solar capacity in collaboration with First Nations communities, aiming to green the grid in Atlantic Canada. In Europe, policymakers remained committed to higher renewable targets, including the EU’s draft 2040 goal and ongoing 2030 plans.

**Expert and Industry Perspective:** Many experts maintain a positive long-term outlook for solar despite policy challenges. Gina McCarthy, former White House climate advisor, noted in a May 12, 2025 interview that U.S. companies continue to invest in clean energy, even if their public statements have become more subdued under the current administration. She acknowledged that while the federal policy reversal is “abrupt” and discouraging, “few businesses with advanced transition initiatives are watering down their climate plans or backtracking” on renewable investments. This persistence by the industry, combined with robust international growth, suggests that solar energy will continue its rapid expansion globally.

In summary, May and June 2025 witnessed solar power reaching new heights, marked by record deployments, spending, and technological advancements, even as the industry navigates political challenges in certain markets.

### Wind Energy Developments (May–June 2025)

**Global Wind Expansion:** The wind power sector also experienced significant developments worldwide in late spring 2025. China, again, led in scale—alongside its solar boom, China added a substantial amount of wind capacity. Between January and May 2025, China installed 46 GW of new wind power, in addition to the previously mentioned 198 GW of solar. Notably, 26 GW of wind capacity was installed in just May 2025, equating to approximately 5,300 new wind turbines added in a single month. This one-month wind addition is comparable to the total installed wind capacity of countries such as Vietnam or Argentina, solidifying China’s position as the world’s largest wind market.

Additionally, China achieved a technological milestone: on June 5, 2025, Chinese engineers installed the world’s first 18 MW offshore wind turbine at a test site in Shantou, Guangdong. This groundbreaking turbine, featuring a massive 260 m rotor diameter, is now the most powerful single wind turbine ever constructed, surpassing previous models in the 15–16 MW range. This development signals the future potential for offshore wind farm economics through increased energy generation per unit.

Outside of China, other regions saw steady advancements in wind projects. In Europe, both onshore and offshore developments progressed. For instance, Danish authorities approved a 51 MW “hybrid” renewable park combining wind and solar in May, while Germany resumed construction on a 31 MW onshore wind farm after winter delays. The UK continued its offshore wind farm construction, including the ongoing development of Dogger Bank, which aims to become the world’s largest at 3.6 GW. In North America, Canada made significant commitments: NB Power signed agreements in May for four new wind farms totaling 452 MW, all developed in partnership with local First Nations communities, set to come online by 2027–28.

**Corporate and Market Moves:** Several corporate developments underscored the growth of the wind sector. In Europe, major utilities expanded their operations abroad. For example, Italy’s largest utility, Enel, announced on May 26, 2025, a deal to enhance its U.S. renewable portfolio by 285 MW through a swap of wind farm assets with investment firm Gulf Pacific Power. This transaction will raise Enel’s total installed green capacity in the U.S. to around 11.9 GW, reflecting the company’s strategy to acquire operating wind projects to accelerate growth.

However, policy uncertainty clouded the outlook in the United States. The same budget proposals discussed earlier would also hasten the end of wind power tax credits and impose new taxes on wind projects. The Senate’s late-June bill would immediately repeal the Production Tax Credit (PTC) for wind—this subsidy has been in place since 2005—and impose an additional tax on new wind farms using any components from China. Moreover, it would accelerate the phase-out of credits for domestic wind turbine manufacturing.

The American Clean Power Association and renewable developers warned that such measures would stall many planned wind installations. Analysts described the proposed cuts as “not a scalpel, but a meat cleaver” to the sector. Nevertheless, global wind investment remains robust. The IEA noted that worldwide, wind power investment is part of the $2.2 trillion clean energy spending in 2025, with emerging markets picking up some of the slack should the U.S. slow down. For instance, South Africa is advancing large-scale wind and solar auctions, while Brazil and Australia continue to see strong wind project pipelines.

**Technology and Innovation:** The wind industry is also pushing technological boundaries. Companies are deploying taller turbines and exploring floating offshore wind projects. A noteworthy innovation in June 2025 came from China, where state-owned CRRC launched what it claims to be the world’s largest floating wind turbine in Shandong province. This initiative indicates China’s entry into the floating wind sector, aiming to exploit deep-water resources. In Europe, developers continued testing floating platforms in Scotland, Norway, and Spain. Although no new efficiency records were set, the scale of advancements—such as the 18 MW turbine—suggests that future offshore wind farms could utilize turbines in the 15–20 MW range, significantly lowering the cost per MWh.

Another emerging trend is the development of hybrid renewable plants. Projects combining wind, solar, and storage are being approved, such as the aforementioned hybrid park in Denmark, to maximize land use and provide more consistent energy output. Additionally, grid operators in regions like Texas and Germany successfully managed new wind generation records in spring 2025 without major issues, thanks to improved forecasting and battery support.

In summary, wind energy developments in May and June 2025 were characterized by rapid expansion, particularly in China, along with active corporate investments and project developments across continents. Despite the U.S. considering a reduction in support for wind, many other regions are making significant strides. Experts emphasize the importance of wind power—having supplied about 7% of global electricity in 2022—to grow substantially to meet climate goals. The record installations and larger turbines of 2025 illustrate that the wind industry is rising to this challenge, while policymakers highlight wind and solar as critical components of future energy security.

### Tidal Energy and Marine Renewables (May–June 2025)

Tidal stream and wave energy—often referred to as marine renewables—made notable advancements in mid-2025, even as these technologies remain in pre-commercial or early commercial stages. A significant tidal energy project in Wales reached important milestones during this period. The Inyanga Marine Energy Group, a UK-based developer, is constructing a 20 MW tidal stream array at the Morlais Demonstration Zone off Anglesey, Wales—one of the largest consented tidal energy projects globally. On May 27, 2025, Inyanga announced it had awarded a fabrication contract to Hutchinson Engineering for its proprietary “HydroWing” tidal turbines. This contract covers essential components such as steel foundations and nacelle structures for the array’s first units, with each HydroWing device expected to produce 1.2 MW. Deployment of the first unit is scheduled for Q1 2026. Inyanga’s CEO, Richard Parkinson, remarked that the Morlais project is “the largest of its kind in the world” and represents a “once in a generation opportunity to demonstrate the full potential of tidal energy,” positioning Wales as a global leader in this field. The project received a boost from policy support, with the Welsh Government investing £2 million in Inyanga as part of its funding round, underscoring public commitment to tidal energy innovation. Throughout June 2025, Inyanga continued awarding contracts for the array’s construction, indicating steady progress.

Elsewhere, other tidal and wave initiatives also advanced. In North America, Canada’s Fundy Ocean Research Center for Energy (FORCE) in Nova Scotia—home to the world’s most powerful tides—announced new opportunities for tidal projects as of June 3, 2025, inviting developers to deploy next-generation tidal turbines at its test sites. Meanwhile, in the United States, attention focused on wave energy on the Pacific coast. In June, Eco Wave Power, an Israeli-founded wave energy company, confirmed the launch date for the first-ever grid-connected wave power project in the U.S. The project, located at AltaSea in the Port of Los Angeles, will consist of an onshore wave energy array using floating devices attached to a pier to harness Pacific wave motion. It is set to go live on September 9, 2025, with a demonstration event planned to showcase this “historic installation” as a model for how ports can become clean energy hubs. Although this pilot project will be modest in scale (approximately 100 kW to a few hundred kW), it signifies a milestone for U.S. marine energy and is supported by both private and public stakeholders, including Shell’s marine renewable program. Eco Wave Power’s CEO heralded it as proof-of-concept that could be replicated at other coastal sites.

Additionally, other marine energy developments included Scottish and French firms continuing research and development on tidal turbines, with Orbital Marine Power in Scotland working on its O2 floating turbine deployments and Sabella in France preparing for a Brittany deployment, although specific announcements occurred slightly earlier in 2025.

While tidal and wave energy are still far from mainstream, experts believe they could play a niche but crucial role in future energy systems, especially for coastal communities and as a reliable complement to wind and solar. Progress observed in May and June 2025—from the construction of Wales’ 20 MW array to U.S. wave energy demonstrations—suggests that marine renewables are advancing. Industry advocates emphasize that consistent government support is vital at this stage, as seen with the UK’s tidal energy Contracts for Difference allocation and Canada’s tax credits for tidal prototypes. The actions taken by the Welsh and Canadian governments are encouraging. However, policy risks exist: marine projects in the U.S. may be affected by the aforementioned federal shifts, even though some funding for marine energy R&D is authorized separately. Overall, tidal energy development during this period reflects innovation and persistent optimism.

### Outlook and Key Takeaways

The developments of May and June 2025 highlight both remarkable momentum and significant challenges within the renewable energy sector. On one hand, investment in clean energy is at an all-time high, reaching record levels globally. Deployment of solar and wind technologies is accelerating faster than ever, led by Asia—particularly China—with strong contributions from Europe, the Middle East, and the Americas. Technological innovations continue to enhance performance and reduce costs, from more efficient solar cells to more powerful wind turbines. Emerging sectors like tidal and wave energy are making tangible progress, expanding the toolkit of renewable options for the future. Furthermore, experts and leaders are emphasizing the necessity of maintaining momentum for long-term climate and energy goals.

However, this period also revealed policy risks and growing pains. In the United States, attempts to roll back clean energy incentives in mid-2025 introduce uncertainties that could impede renewable deployment in one of the world’s largest markets. Some European countries also expressed concerns about the pace and cost of the transition, indicating that even in the face of overall progress, debates about burden-sharing and energy affordability persist. Additionally, challenges related to supply chains and grid infrastructure upgrades remain, as noted by the IEA, which warned that while generation investments are booming, grid investments (~$400 billion/year) are still insufficient, potentially threatening reliability unless permitting and planning improve.

In summary, the global trajectory for renewable generation in mid-2025 appears overwhelmingly positive. Solar and wind technologies are breaking records for capacity and generation, attracting the majority of new investments in the power sector. Companies and governments worldwide are announcing new projects and manufacturing plans nearly every week, from 450 MW wind farms in Canada to solar factories in Egypt. Even nascent technologies like tidal and wave energy are stepping into the spotlight with concrete projects. This two-month snapshot illustrates an industry transitioning from niche to mainstream, delivering real power in real time, as evidenced by high renewable shares in several large economies’ electricity mixes. Nonetheless, it also underscores that policy support remains a critical factor: supportive policies can ignite investment and deployment, while policy reversals can dampen momentum and confidence in the sector.

Looking ahead, analysts expect 2025 to set new records for global renewable energy additions, barring major economic disruptions. The IEA’s projection of $3.3 trillion in energy investment, with the majority directed toward clean energy, serves as a strong indicator. However, the pace of growth will depend on stable policy frameworks and ongoing technological advancements. As Fatih Birol summarized in June 2025, “the fast-evolving economic and trade picture” presents challenges, but thus far, the clean energy surge remains on track. The months of May and June 2025 have demonstrated that renewable energy is not just an ideal for the future—it is manifesting at an unprecedented scale today, bringing both opportunities and the need for thoughtful navigation of challenges. The balance of news—from robust corporate investments and innovation breakthroughs to political debates—illustrates that the global renewable transition is entering a critical phase, defined by action and implementation. The coming months will reveal whether the record growth observed in May and June 2025 can be sustained and amplified throughout the latter half of the year, keeping the world aligned with its clean energy and climate ambitions.