In September 2022, following Russia’s invasion of Ukraine and a surge in global oil and gas prices, installations of wind and solar capacity, sales of electric vehicles (EVs) and clean-energy investment accelerated significantly. Between 2021 and 2025, annual renewable installations increased from 300 GW to 815 GW, while EV sales grew by 220 percent to 20.8 million units, according to BloombergNEF.
In the United States, clean-energy growth persisted despite policy changes under the Trump administration that rescinded federal EV incentives, imposed tariffs on renewable equipment and expedited fossil-fuel development. Retained tax credits for geothermal, nuclear, battery storage and carbon capture technologies—and revived solar and wind incentives for projects meeting construction deadlines—helped sustain momentum. Stationary battery storage capacity rose from near zero in 2024 to about 20 GWh in 2025, with projections of 133 GWh by 2027 as some planned EV gigafactories were repurposed for grid storage.
Globally, investment in the energy transition reached $2.3 trillion in 2025, a 5 percent real-term increase, while wind and solar output climbed 18 percent, absorbing nearly all new power demand. Renewables, including hydro, surpassed coal-fired generation and together provided one-fifth of world electricity. EVs accounted for one in four new cars sold worldwide, with China and Europe leading adoption.
The recent closure of the Strait of Hormuz—which handles roughly 20 percent of seaborne oil and liquefied natural gas (LNG)—has raised concerns that up to 10 million barrels per day of oil supply could be lost, potentially driving prices above $200 per barrel. By contrast, LNG disruptions represent about 3 percent of total gas supply, and accelerating wind and solar deployment could offset that loss within months.
Analysts predict these developments will trigger a “Clean Energy Acceleration 2.0,” advancing renewables, EVs and efficiency measures and potentially bringing peak fossil fuel use and emissions before 2030. While high fuel prices may also encourage additional oil, gas and coal investment, the instability underscores the economic value of reducing reliance on volatile fossil-fuel markets.
Source: BloombergNEF
