Global Energy Transition Stalls: Policy Gaps and Market Barriers Threaten Renewable Momentum in 2025
India’s renewable energy sector experienced fluctuations in early 2025, with solar tender releases and auction activity declining significantly. Reports suggest that approximately 14.4 GW of solar tenders were issued in the first quarter, marking a 53.1% drop compared to the 30.7 GW recorded during the same period in 2024. Despite setting an ambitious annual target of 50 GW for renewable projects, the government allocated only 10 GW specifically for wind power. Four key implementing agencies, NTPC, NHPC, SECI, and SJVN, were responsible for issuing 77% of this target for the financial year, collectively accounting for 41% of all solar tenders floated in the first quarter.
Auction activity also witnessed a sharp decline, with total announcements falling by 39%, from 10.5 GW in Q4 2024 to 6.4 GW in Q1 2025. Year-on-year, the reduction was even more pronounced, as auctioned capacity shrank by 74.4% from the previous year’s 25 GW. These auctions covered various projects, including standalone solar, solar-plus-storage, and wind-solar hybrid power. The slowdown was attributed to rising domestic module prices and limited availability of DCR-compliant modules. Additionally, delays in power sale agreement signings by distribution companies were believed to have dampened developer interest and participation in auctions.
Further policy adjustments were made regarding efficiency standards for off-grid solar applications. The government lowered the minimum efficiency requirement for crystalline silicon technology modules from 19% to 18%, while standards for cadmium telluride thin-film technology remained unchanged. These revised efficiency criteria applied to streetlights, lamps, fans, and other small-scale installations, but excluded solar pumps and rooftop systems.
Despite advancements in India’s renewable sector, experts have emphasised the need for greater focus on energy efficiency. While the adoption of renewable energy has progressed rapidly, efficiency measures have lagged. Industry analysts stress that for India’s energy transition efforts to gain momentum, commercial and industrial units must prioritise energy-efficient solutions to curb emissions and optimise energy consumption.
On a global scale, the wind energy industry faces challenges in meeting capacity targets set for 2030. The Global Wind Energy Council (GWEC) reported that current growth projections indicate only 77% of the required installed capacity will be achieved, potentially jeopardising international efforts to limit global temperature rise to 1.5°C above pre-industrial levels, as outlined in the Paris Agreement.
In 2024, 117 GW of new wind capacity was installed worldwide, reflecting only a marginal increase from the 116.6 GW recorded the previous year. Total global wind power capacity reportedly reached 1,136 GW, but experts warn that this growth remains insufficient given the world’s rapidly increasing electricity demand. China accounted for 70% of all new installations last year, yet the industry continues to face obstacles, including policy instability, bureaucratic delays in project approvals, and inadequate investment in grid infrastructure.
Despite these challenges, Africa and the Middle East witnessed notable progress, with onshore wind capacity additions doubling in 2024 compared to previous years. Conversely, the offshore wind sector experienced setbacks, recording only 8 GW of new capacity, a 26% decline from the previous year and the lowest figure since 2021.
Meanwhile, Germany recorded its lowest clean energy generation in more than a decade during the first four months of 2025. Reports suggest that electricity from renewable sources totalled just under 80 terawatt hours (TWh), a 16% decline compared to the same period in 2024 and the lowest level since at least 2015. In response, fossil fuel output increased by 10%, with its share in Germany’s energy mix reaching its highest level since 2018. Experts warn that expanding coal and gas-fired electricity to meet demand could lead to higher emissions, potentially undermining Germany’s leadership in the energy transition.
In the UK, policymakers are reportedly considering a mandate requiring solar canopies on new car parks in England, Wales, and Northern Ireland. Officials estimate that installing solar panels on an 80-space car park could save owners approximately £28,000 on electricity bills annually by generating power for direct consumption rather than exporting it to the grid. This proposal is viewed as part of broader efforts to enhance solar energy adoption and improve sustainability in urban infrastructure.
Conclusion
The slowdown in renewable energy expansion is a concerning development at a time when urgent climate action is needed. India’s decline in solar auctions, Germany’s increasing reliance on fossil fuels, and the wind energy sector’s struggle to meet net-zero targets all indicate a loss of momentum in clean energy initiatives. Bureaucratic delays, policy uncertainty, and inadequate infrastructure investment are holding back progress. Without swift and decisive action, countries risk falling short of their commitments to reducing emissions and transitioning to sustainable energy.
Governments and industry leaders must address these challenges by improving regulatory frameworks, streamlining project approvals, and providing financial incentives for clean energy investments. Skoobuzz firmly believes that stability and efficiency in policy execution are crucial to maintaining growth in renewables. The world cannot afford setbacks in the energy transition when climate risks continue to escalate. Strengthening efforts now will determine whether clean energy remains a priority or becomes another missed opportunity.
