Global demand for clean power continues to rise and could receive an additional boost from the conflict in Iran, as higher oil and gas prices and supply disruptions put pressure on economies worldwide. Many observers expect this environment to accelerate the shift toward low-carbon energy sources, with batteries and corporate procurement playing key roles. Here are three trends to watch:
Solar-Plus-Storage in Saudi Arabia
Analysis by BloombergNEF indicates that combined solar photovoltaic (PV) and battery storage systems in Saudi Arabia can deliver almost uninterrupted power at costs competitive with gas turbines for much of the year. For roughly 65% of annual demand, solar-plus-storage can supply electricity at a levelized cost below $45 per megawatt-hour, undercutting modern combined-cycle gas plants. Even to meet nearly 100% of demand, these systems would average around $70 per megawatt-hour. Such economics support the kingdom’s ambition to develop large-scale data center operations powered by renewables and storage.
Corporate Appetite for Clean Power
Large technology firms are driving a growing share of renewable energy purchases. In 2025, hyperscale data operators—including Meta, Amazon, Google and Microsoft—accounted for about half of the 56 gigawatts of clean power agreements signed worldwide. In the U.S. market, these deals made up roughly 76% of the 30 gigawatts contracted. Demand from corporate buyers also extends to emerging clean, firm generation technologies such as enhanced geothermal, advanced nuclear and co-located solar plus storage. Mining and materials companies, such as Egypt Aluminium and Rio Tinto, ranked among the top ten purchasers in 2025. By contrast, investment activity in mature European markets like Germany and Spain slowed amid greater price volatility and policy uncertainty.
Rapid Growth of Utility-Scale Batteries in Australia
Australia saw a record 3.1 gigawatts (7.7 gigawatt-hours) of large-scale battery capacity begin operations in 2025—a fivefold increase over 2024 additions. These batteries are increasingly displacing expensive gas-fired generation during peak evening hours, helping to lower prices and stabilize the grid. In the final quarter of 2025, battery discharge covered 4.4% of average 7 p.m. demand in the National Electricity Market, up from just 0.2% in the same period in 2021.
Source: BloombergNEF
