Indonesia Solar Energy Transition Gains Momentum with $60mn JETP Support

PLN Indonesia Power

Floating Solar Project in Java Advances Despite U.S. JETP Withdrawal

Indonesia’s solar energy transition has taken a significant step forward, with $60 million in new funding for the Saguling floating solar project. The support comes under the Just Energy Transition Partnership (JETP) and involves joint development by PLN Indonesia Power and Saudi-listed Acwa Power. Despite U.S. withdrawal from the JETP earlier in 2025, international backing continues, reinforcing Indonesia’s commitment to phasing out coal.

Multilateral Support Drives Renewable Investment

The Saguling solar project will receive financing from DEG (Germany), Proparco (France), and Standard Chartered, as announced by GFANZ. This adds to the $1.2 billion Indonesia has already secured under the $20 billion JETP framework. France has played a major role, contributing over €450 million ($511 million) in energy transition funding. According to GFANZ, this investment shows strong appetite among both public and private actors to support Indonesia’s solar energy transition.

Coal Dominates, But Solar Begins to Scale

Indonesia still relies on coal for over 61% of electricity, while solar and wind contribute only 0.2%. However, Indonesia holds solar potential of 3,295GW, and projects like Saguling are vital for unlocking that capacity. The Saguling floating solar farm will add 92MWp and reduce carbon emissions by 63,100 t/year. It will increase Indonesia’s solar share by 13%, with renewables projected to rise to 21% of the energy mix by 2030, and 41% by 2040, according to Ember.

The Metalnomist Commentary

Indonesia’s solar energy transition is proving resilient, even amid shifting geopolitical support. The latest JETP-backed investment reaffirms that international climate finance remains a critical pillar in Asia’s coal phase-out.

SECI to Invest ₹25 Billion in 200MW Solar and Battery Storage Projects in Madhya Pradesh

India SECI

India’s Solar Energy Corporation Expands Green Push With New Projects in Dhar and 1,000MWh Storage Facility

SECI Accelerates Renewable Energy Drive with Major Investment in Madhya Pradesh

India’s Solar Energy Corporation of India (SECI) has committed ₹25 billion ($286.5 million) to develop key renewable energy infrastructure in Madhya Pradesh. SECI signed an initial agreement with the state government to build a 200MW solar project in Dhar and a 1,000MWh battery energy storage system.

The investment falls under the Central Public Sector Undertaking (CPSU) scheme and will be executed in phases. SECI, which operates under India’s Ministry of New and Renewable Energy, aims to strengthen the country’s clean energy capacity and reduce dependence on fossil fuels.

Long-Term Clean Energy Commitment Supports India’s Energy Transition Goals

The 200MW solar plant is part of a broader 500MW agreement signed in 2023 with MP Power Management Company Limited (MPPMCL). Under this agreement, SECI will supply renewable electricity to Madhya Pradesh for 25 years, reinforcing long-term power stability through sustainable means.

By investing in solar power and energy storage, SECI continues to lead India's green energy movement. The dual focus on generation and storage aligns with national goals to improve grid reliability and boost clean energy adoption across sectors.

Battery Storage to Play Crucial Role in Energy Security

The planned 1,000MWh battery storage project marks a significant step toward ensuring round-the-clock renewable power availability. With India's energy demands rising, storage infrastructure is essential to integrate intermittent sources like solar into the national grid effectively.

SECI’s announcement confirms its commitment to supporting India’s decarbonization strategy while strengthening Madhya Pradesh’s role as a clean energy hub.

T1 Energy Plans 5GW Solar Cell Plant in Texas to Strengthen US Supply Chain

T1 Energy

Texas Facility Marks New Phase for US Solar Manufacturing

T1 Energy announced plans to build a 5GW solar cell facility in Texas, aiming to address critical gaps in the US solar supply chain. The $850mn G2_Austin plant is scheduled to start production by late 2026. This project follows T1 Energy’s acquisition of Trina Solar’s US assets in 2024 and a rebranding from Freyr Battery, which abandoned its $2.6bn battery storage project in Georgia.

The new facility will supply cells to the 5GW G1_Dallas module plant, reducing reliance on imports from Asia. Current US solar cell capacity remains just 2GW, compared to 56GW of module production. This imbalance highlights the urgency of building more domestic cell production.

US Tariffs and Technology Drive Expansion

T1 Energy’s Texas project benefits from US tariffs and tax incentives, which encourage domestic solar manufacturing. The US Commerce Department has imposed anti-dumping duties on PV cells from Southeast Asia to counter circumvention of Chinese tariffs. Meanwhile, T1 Energy will adopt high-efficiency TOPCon technology, which uses n-type polysilicon. This move reflects the global shift from older Perc technology toward higher-performing solar cells.

However, tariff uncertainty has caused the company to lower its module production forecast for 2025 to 2.6–3GW, down from 3.4GW. T1 Energy is also holding off on long-term power purchase agreements until cost visibility improves. Despite these challenges, the Austin facility represents a major step toward reshoring solar cell production and securing domestic supply chains.

The Metalnomist Commentary

T1 Energy’s 5GW solar cell project signals a turning point for US clean energy policy, linking tariffs, incentives, and new technology adoption. If executed successfully, this facility could strengthen US energy independence while setting a precedent for integrated solar manufacturing in North America. However, cost pressures and tariff volatility remain significant risks for long-term stability.

US Imposes Tariffs on Solar Imports from Four Asian Countries

US Solar

The U.S. Department of Commerce has imposed new duties on solar products imported from Cambodia, Malaysia, Thailand, and Vietnam. The preliminary ruling, announced on Tuesday, claims that manufacturers in these countries have benefited from subsidies that allow them to undercut U.S. companies, thereby disrupting fair competition. The tariffs target crystalline silicon photovoltaic cells and modules, with rates ranging from less than 1% to nearly 293%, depending on the individual companies and their responses to Commerce’s inquiries.

Tariffs Range Widely, Affecting Industry Dynamics

U.S. Customs and Border Protection will now begin collecting cash deposits from importers to match the preliminary subsidy rates. The baseline rates are set as low as 2.85% for Vietnamese imports and as high as 23.06% for those from Thailand, but individual companies could face much higher tariffs if found to be "non-responsive" to Commerce’s investigation. These duties are retroactive by 90 days, adding pressure to the affected importers.

This action stems from a petition filed by the American Alliance for Solar Manufacturing Trade Committee, a coalition of U.S. solar companies including FirstSolar, Mission Solar Energy, and Hanwha Q Cells. The group alleged that Chinese companies have been circumventing U.S. trade law by setting up production in Southeast Asia, exporting large volumes of subsidized solar products to the U.S. under the guise of local manufacturing. This allowed these companies to avoid duties imposed by previous investigations, leading to what the coalition claims is a distortion of the U.S. market.

In 2022, President Biden temporarily paused new duties from a related investigation to mitigate disruption in the U.S. solar market. However, critics argue that this gave Chinese companies an opportunity to shift their supply chains to Southeast Asia. Tim Brightbill, lead counsel for the coalition, expects the preliminary rates to rise as Commerce gathers more data from affected companies. "We are confident that the duty rates will increase as Commerce continues to investigate newly alleged subsidies," he said.

Industry Divided on the Impact of New Tariffs

The decision has sparked a debate within the U.S. clean energy sector. While manufacturers like FirstSolar support the tariffs as a means to protect domestic industry, other trade groups, such as the Solar Energy Industries Association (SEIA) and the American Council on Renewable Energy (ACORE), warn that the tariffs could hinder the country’s decarbonization efforts. ACORE CEO Ray Long emphasized the need for a balanced approach, stating, "What America's clean energy sector needs right now is a balanced trade policy that sustains the progress we're making deploying clean energy and ramping up domestic manufacturing capabilities."

Commerce is set to release a preliminary antidumping determination on November 27, which could further affect the industry landscape. Petitioners have requested that Commerce issue final determinations on both countervailing and antidumping duties simultaneously, which would potentially arrive by April 11, 2025. Without joint issuance, a separate determination on countervailing duties could come as soon as February 10, 2025.

Vattenfall to Invest €5 Billion in German Renewables by 2028

Vattenfall

Massive Investment in Renewable Energy

Swedish state-owned energy giant Vattenfall has unveiled ambitious plans to invest over €5 billion in Germany by 2028 as part of its commitment to the energy transition. The initiative underscores Germany's growing importance as a hub for renewable energy development.

Focus Areas: EV Infrastructure and Solar-Battery Integration

A significant portion of this investment, approximately €500 million, is earmarked for developing electric vehicle (EV) charging infrastructure across Germany. This aligns with the increasing demand for a robust EV ecosystem to support the shift towards carbon-neutral mobility.

Vattenfall also aims to expand its solar energy portfolio by building 500MW of solar parks annually. These parks will be coupled with 300MW of large-scale battery energy storage systems, ensuring grid stability and compensating for fluctuations in solar power generation.

Wind Power Expansion

The company's wind energy projects are equally impressive. Vattenfall is set to bring the Nordlicht 1 and 2 wind farms online by 2028, delivering a combined capacity of 1.6GW. Although Nordlicht 1's initial operational date was planned for 2027, it has been slightly delayed.

In its Q3 2024 financial results, Vattenfall highlighted that it had already added 1.3GW of new wind capacity over the past year, a testament to its leadership in renewable energy development.

A Step Towards Energy Transition

Vattenfall’s investment marks a pivotal step in Europe’s energy transition. By focusing on solar, wind, and EV infrastructure, the utility not only contributes to Germany's climate goals but also fortifies its position as a leader in sustainable energy solutions.

India's Pahal Solar Expands Solar Module Capacity with New 1 GW/yr Plant

Indian photovoltaic module manufacturer Pahal Solar is gearing up to launch a new 1 GW/yr solar module plant in Olpad, Surat by the end of August. This expansion will boost the company's total production capacity to 1.8 GW/yr.

The new facility's construction is nearing completion, with expectations to finish by late August. Commercial production will begin soon after, a company representative told Metalnomist.

Pahal Solar's current 800 MW/yr plant produces advanced n-type tunnel oxide passivated contact (TOPCon) modules and bifacial and mono passivated emitter and rear cell (PERC) modules. The new plant will primarily focus on manufacturing TOPCon solar modules, aligning with the industry trend towards this technology.

Indian solar manufacturers are increasingly adopting TOPCon technology due to its higher efficiency and greater energy yield over its lifespan compared to traditional PERC technology. This shift is expected to enhance the performance and reliability of solar modules.

The demand for solar panels in India is projected to rise, driven by the government's strong push for green energy solutions. Solar panels, which require materials like silicon, are a key part of this transition to low-emission energy technologies.

Additionally, Pahal Solar is considering establishing a manufacturing plant in South Africa, although details on the timeline and capacity have yet to be disclosed. This move highlights the company's ambition to expand its global presence in the solar energy market.

By adopting advanced technology and expanding its production capacity, Pahal Solar is set to play a crucial role in supporting India’s renewable energy goals.

Duke Energy Proposes 300MW Solar Expansion in Florida as First Phase of Larger Clean Energy Push

Duke Energy

Four New Solar Projects to Deliver Over 650,000 MWh Annually Under 2025–27 Rate Plan

Duke Energy Submits Plans for Major Solar Projects to Florida Regulators

Duke Energy is seeking approval from the Florida Public Service Commission (PSC) for four new solar farms totaling 300MW in capacity. This marks the utility’s first step in a broader clean energy initiative under a 2025–2027 rate increase approved last year.

Each solar installation will provide 74.9MW of capacity and together are expected to generate approximately 650,000 megawatt-hours annually. The utility anticipates the first site going online in July 2025, with two more following in January 2026 and the final one in May 2026.

Capacity Factors Suggest Strong Initial Output

Duke’s regulatory filings indicate the four projects will operate with first-year capacity factors ranging from 25% to 26.2%. These metrics reflect actual energy output compared to the projects’ full potential and are influenced by technology and Florida’s solar intensity. Two of the four farms are projected to produce around 172,000 MWh in their first year, while the others are expected to yield about 168,600 MWh and 164,000 MWh, respectively.

Part of Broader 900MW Solar Roadmap Through 2027

The current proposal is part of Duke Energy’s long-term goal to deploy 12 solar farms with a combined capacity of nearly 900MW. The utility intends to build four projects annually between 2025 and 2027. However, the plan allows for flexibility, permitting Duke to delay individual projects by up to one year if necessary.

Before construction can begin, the PSC must approve each project individually—even under the umbrella of the previously authorized rate hike. This procedural checkpoint ensures oversight and accountability as Florida moves toward cleaner energy sources.

Canadian Solar Battery Storage Guidance Jumps 21% on Data Center Demand

Canadian Solar

Canadian Solar battery storage shipments guidance for 2025 surged 21% as the renewable energy company capitalizes on growing demand from data centers and cryptocurrency mining operations. The company now expects utility-scale battery energy storage system (BESS) deliveries to reach 7-9 GWh in 2025, reflecting strong market fundamentals despite challenging industry conditions.

Data Centers Drive Battery Storage Market Growth

Canadian Solar battery storage business benefits from accelerating digitalization trends requiring reliable backup power solutions. Data centers and cryptocurrency mining facilities increasingly demand large-scale energy storage to ensure operational continuity and manage power costs. The company's revised guidance includes approximately 1 GWh designated for its own renewable energy projects.

Meanwhile, Canadian Solar secured a significant contract with Chilean utility Colbún in April. The deal involves supplying a 228MW/912MWh lithium iron phosphate BESS in Chile's Atacama Region. This project demonstrates the company's ability to compete for major utility-scale installations in key Latin American markets.

Industry Headwinds Impact Financial Performance

However, Canadian Solar faces mounting challenges affecting profitability across its operations. Geopolitical uncertainty reduces business visibility while oversupply and fierce competition pressure margins throughout the renewable energy sector. These factors contributed to deteriorating financial results in the first quarter.

Therefore, the company reported a $76.6 million net loss in Q1 2025, contrasting sharply with $36.2 million net income in the prior year period. Seasonally lower BESS sales and trade-related duties further compressed margins during the quarter.

Q2 Recovery Expected Despite Market Pressures

Canadian Solar battery storage shipments totaled 0.8 GWh in Q1 but management expects significant improvement ahead. The company projects 2.4-2.6 GWh in BESS deliveries during the second quarter, indicating strong sequential growth momentum.

As a result, Canadian Solar positions itself to benefit from structural demand growth in energy storage markets. The company's focus on utility-scale projects and strategic partnerships with major utilities supports its optimistic 2025 outlook despite near-term profitability challenges.

The Metalnomist Commentary

Canadian Solar's upgraded BESS guidance reflects the energy storage sector's rapid evolution driven by digital infrastructure expansion and grid modernization needs. While the company navigates challenging market conditions including oversupply and trade tensions, its strategic positioning in high-growth segments like data center storage creates compelling long-term value propositions for investors and industry stakeholders.

Australia Invests $63 Million in Neoen’s Renewable Energy Projects

Neoen

The Australian government has committed A$100 million ($63.2 million) in funding to French renewable energy producer, Neoen, to support the development of three large-scale renewable energy and battery storage projects in Australia. This investment reflects Australia's ongoing push to expand its renewable energy infrastructure and reduce reliance on fossil fuels.

Focus on Battery Storage and Solar Power

The three projects in question include:

1. A 341MW Battery Energy Storage System (BESS) in Western Australia.
2. A 270MW BESS in Queensland.
3. A 440MW peak solar farm in New South Wales.

These projects, which are still under development, aim to enhance Australia's energy security by integrating large-scale storage solutions with renewable energy generation. The Western Australia BESS is particularly significant as it will be an extension of the already operational Collie Battery Energy Storage System, which stores and discharges 219MW of power. Once both parts of the Collie system are fully operational, they will support up to 20% of the state's average energy needs.

Neoen’s New South Wales solar farm, known as the Culcairn Solar Farm, is scheduled to begin generating 800 GWh/year by 2026, covering an area of 1,000 hectares. While a BESS at the site is a possibility, Neoen has yet to make any official announcements regarding that development.

Role of the Clean Energy Finance Corporation (CEFC)

The Clean Energy Finance Corporation (CEFC), a state-owned green investment fund, is providing the funding to Neoen. The CEFC has already been involved in funding a total of 2.3GW worth of battery storage projects across Australia, playing a crucial role in the country's transition to a cleaner, more sustainable energy grid.

Australia’s Renewable Energy Growth

Renewable energy generation has surged across Australia, now accounting for 25% of the country’s total power generation in 2023, up from 17% in 2017. During the same period, the combined share of gas and coal in power generation fell from 81% to 63%. This shift aligns with the government’s broader climate goals, including decarbonizing the energy sector and ensuring energy resilience.

The funding commitment to Neoen comes just a day after the Australian government allocated A$14.1 million to GrainCorp and Ampol to promote the development of sustainable aviation fuels and renewable diesel.

Chinese PV Industry Faces Overcapacity and Profit Losses: IEA Reports

Iea(The International Energy Agency)

The International Energy Agency (IEA) has issued a concerning report highlighting the overcapacity and declining profitability in China’s photovoltaic (PV) industry, which is the dominant force in the global solar energy supply chain. The report, presented during a webinar this Thursday, sheds light on the financial struggles faced by major Chinese manufacturers such as JA Solar Technology and LONGi Green Energy Technology, which have reported significant losses in their recent financial statements.

According to Izumi Kaizuka, an analyst at the IEA, the mood at the 17th SNEC PV conference in Shanghai this June was grim. Kaizuka quoted the founder of GCL Group, a major PV manufacturer, who expressed concern that the Chinese PV industry is "entering an ice age" due to a severe imbalance in supply and demand. The report also highlighted the bankruptcy of Zhejiang Akcome, one of China’s leading PV manufacturers, earlier this year, with the IEA predicting more closures in the near future.

China's Dominance in Global PV Production

Despite the struggles at home, China continues to dominate the global PV industry. In 2023, China accounted for more than half of the 456GW of global solar power capacity added, and nine of the top 10 PV suppliers in the first half of 2024 were Chinese-owned. The country has increased its production share across all segments of the PV supply chain, including polysilicon, crystalline silicon wafers, solar cells, and PV modules, with its share reaching 92%, 98%, 92%, and 85%, respectively, in 2023.

The rapid expansion of China’s PV capacity is evident, with the country increasing its own year-on-year solar additions by 123% from 2022 to 2023, followed by Italy (113%) and Germany (109%). However, the global demand for PV capacity is pushing countries like the EU and the US to expand their own solar production capabilities, with the EU installing over 56GW in 2023 alone.

The EU's Push for Solar Manufacturing

In response to its growing reliance on Chinese imports, the European Union (EU) has set ambitious targets to scale up domestic production of PV panels. Under the Net-Zero Industry Act, the EU aims to produce at least 40% of its annual needs for strategic net-zero technologies—including solar panels—by 2030. With current production at under 5GW annually, the EU is planning to ramp up its manufacturing capacity to 30GW per year by 2030 in order to meet its renewable energy goals.

As the global PV market faces challenges like overcapacity and supply-demand imbalances, the role of China in driving production and the EU’s efforts to boost its domestic capabilities will shape the future of the solar industry.

Octopus Energy Expands Renewable Portfolio with Exagen Acquisition

Exagen

UK-based utility Octopus Energy has bolstered its renewable energy ambitions by acquiring Exagen, a UK developer specializing in solar and battery storage projects. This acquisition significantly expands Octopus Energy's renewable project pipeline and strengthens its position in the UK energy market.

A Major Boost in Solar and Battery Storage

Exagen holds a pipeline of 2.4GW of solar and battery storage projects across various locations in England. Among these, planning consent has already been secured for 520MW of battery energy storage projects in Leicestershire and Gloucestershire. Additionally, Exagen has 260MW of solar projects and 268MW of battery storage currently in planning or pre-planning stages. This acquisition provides Octopus with a major foothold in both the solar and battery storage markets, aligning with the company’s broader renewable energy strategy.

This move comes after Octopus Energy's initial investment in Exagen in August 2022, when the company acquired a 24% stake through its energy development partnership fund. The financial specifics of the full acquisition have not been disclosed.

Globally, Octopus manages close to £7 billion ($9.4 billion) in renewable energy projects, demonstrating its commitment to expanding its clean energy footprint.

US Finalizes 45X Tax Credits to Boost Clean Energy Manufacturing

US renewable energy projects

The US Department of the Treasury and Internal Revenue Service has finalized rules for the 45X advanced manufacturing tax credit, an initiative under the Inflation Reduction Act of 2022. The credit is designed to spur investment in domestic manufacturing for components used in wind, solar, and battery systems, reducing reliance on imports and strengthening the US clean energy supply chain.

Key Highlights of the 45X Tax Credit

• Incentives for Components:

- Solar cells: 4¢/W

- Solar modules: 7¢/W

- Photovoltaic wafers: $12/m²

- Wind turbine blades: 2¢/blade

- Battery cells: $35/kWh

• Mineral Production Tax Credit: US producers of critical minerals like aluminum, cobalt, graphite, lithium, and nickel can claim 10% of production costs.

Phased Expiry of Credits

The credits will begin phasing out after 2030:

• 75% of the original value for components sold in 2030.
• 50% for 2031.
• Expiring completely after 2033.

Impact on the Renewable Sector

The 45X credit is expected to bolster the US solar industry, which has long relied on imported photovoltaic cells and modules, primarily from China and Southeast Asia. These imports are subject to tariffs and trade investigations, creating additional hurdles for developers.

US-based companies such as First Solar, Enel, and Qcells have already announced plans to establish manufacturing facilities in the US, citing the credits as a critical driver.

A Step Towards Energy Independence

Energy Secretary Jennifer Granholm highlighted the broader implications of the credits:

"These final rules will help strengthen energy dominance while reducing emissions and leveling the playing field for US companies."

With solar and wind energy demand continuing to grow, the 45X tax credit represents a significant step in building a robust, domestic clean energy manufacturing ecosystem, ensuring the US remains competitive in the global energy transition.

LG Energy Solution Secures 7.5GWh ESS Deal with Excelsior for U.S. Market

LG Energy Solution

LG Energy Solution (LGES) has signed a multi-year contract to supply 7.5GWh of integrated energy storage systems (ESS) to Excelsior Energy Capital, a U.S.-based renewable energy infrastructure investor. The deal, set to take effect in 2026, marks another significant step in LGES’s expansion in the U.S. grid-scale battery storage market.

The ESS systems will be manufactured in the United States using LGES’s containerized battery solution, incorporating lithium iron phosphate (LFP) long cells to enhance energy efficiency and safety. The financial details of the transaction have not been disclosed.

U.S. Content Compliance and Service Integration

The ESS units will be designed to meet U.S. content requirements, reinforcing LGES’s commitment to localizing battery production in compliance with Inflation Reduction Act (IRA) incentives. The company’s subsidiary, LGES Vertech, will oversee integration and lifecycle services for the energy storage systems.

Excelsior Energy Capital focuses on mid-market wind and solar energy investments across North America, making this partnership a critical step toward expanding renewable energy storage infrastructure in the region.

Expanding Presence in the U.S. Energy Storage Market

The deal follows LGES’s 8GWh agreement with U.S. renewable energy producer Terra-Gen in November 2023, further cementing its position as a leading supplier of battery energy storage solutions (BESS) for the growing U.S. renewable energy sector.

Texas BESS Project Unites OCI, CPS Energy, and LG Energy Solution

CPS Energy

OCI Energy, CPS Energy, and LG Energy Solution launched a major Texas BESS project collaboration. The 120MW/480MWh Alamo City battery storage system will stabilize Bexar County's power grid. This strategic Texas BESS project partnership advances San Antonio's energy resilience goals significantly.

LGES Vertech Supplies Advanced Battery Technology

LG Energy Solution's US division Vertech will provide cutting-edge battery systems and management technology. OCI Energy develops the project while CPS Energy secures the storage capacity offtake agreement. Meanwhile, this partnership raises CPS's total contracted battery storage to 520MW. The facility targets operational status by late 2026.

The Texas BESS project supports grid stability during peak electricity demand periods. Furthermore, the 20-year agreement ensures long-term energy security for San Antonio residents. This development aligns with Texas's growing energy storage infrastructure requirements.

Strategic Impact on Texas Energy Transition

CPS Energy's Vision 2027 plan incorporates this battery storage system comprehensively. The initiative adds 1,710MW natural gas, 730MW solar, and 84MW wind capacity. Therefore, energy storage becomes crucial for renewable integration and grid balancing. The project demonstrates Texas's commitment to diversified energy solutions.

Battery energy storage systems transform Texas's electricity market dynamics fundamentally. Moreover, Korean battery technology strengthens US-South Korea clean energy partnerships. As a result, San Antonio gains enhanced grid resilience and sustainability capabilities. This Texas BESS project model could inspire similar developments statewide.

The Metalnomist Commentary

LG Energy Solution's participation highlights Korean battery manufacturers' aggressive US market expansion amid IRA incentives. The 480MWh capacity represents significant lithium-ion battery demand, potentially requiring 400-500 tonnes of lithium carbonate equivalent. This project exemplifies how energy storage drives critical mineral demand while enabling renewable energy integration at scale.

U.S. Solar Power Hits Record Growth in 2024 Despite Policy Uncertainty

Wood Mackenzie

Utility-scale solar leads capacity surge as residential segment contracts; industry braces for regulatory headwinds in 2025.

The U.S. solar sector added nearly 50,000 MWdc of capacity in 2024, setting a new record and growing 21% year-over-year, according to a joint report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. Solar energy accounted for 66% of all new power generation, surpassing its previous high of 56% set in 2023.

This marks the fourth consecutive year solar has held the largest share of new U.S. generation, driven by Inflation Reduction Act (IRA) incentives, resilient supply chains, and strong demand from utilities and corporations.

Utility-Scale Leads Surge, But Residential Slumps

Utility-scale solar led the boom, adding 41,100 MWdc—a 33% increase from 2023. However, 2025 may see a 2% contraction in this segment due to policy uncertainty.

The residential solar market declined 31% to 4,700 MWdc, hit by high financing costs and lower demand. Still, 9% growth is expected in 2025, especially in California, where market stabilization is underway.

Commercial installations rose 8% to 2,100 MWdc, fueled by projects under California’s NEM 2.0, but are expected to drop 11% in 2025. Developers face federal compliance hurdles related to wage and apprenticeship rules tied to tax credits.

Growth in Community Solar, But Headwinds Ahead

Community solar jumped 35% to nearly 1,750 MWdc, though 2025 growth could fall 15% due to interconnection issues and saturation in mature states.

While demand remains strong, looming policy risks threaten momentum. These include:

• Tariff hikes on Canadian and Mexican imports set for April 2

• A 60-day freeze on permitting for federal land projects

• A shift in federal focus toward thermal and hydro energy

Despite these risks, SEIA and Wood Mackenzie forecast a minimum of 43,000 MWdc per year through 2035, pushing cumulative capacity beyond 730,000 MWdc. However, that pace could slow by 25% if key IRA tax incentives are removed or diluted.

OCI, CPS, LGES Partner on Texas BESS Project

Battery Energy Storage System (BESS)

The Alamo City BESS project in Texas marks a major milestone in energy storage and US-Korea clean energy collaboration.

Texas Battery Storage Capacity to Expand with 120MW BESS

OCI Energy, CPS Energy, and LG Energy Solution Vertech will jointly develop the Alamo City Battery Energy Storage System (BESS). The 120MW/480MWh facility, located in Bexar County, Texas, will supply backup power during peak demand periods.

Under the deal, LGES Vertech will deliver the BESS units and energy management systems to OCI Energy, the project developer. CPS Energy, the municipal utility serving San Antonio, will purchase the storage capacity through a long-term offtake agreement.

This collaboration increases CPS Energy's battery storage portfolio to 520MW, ensuring greater grid reliability across south-central Texas.

BESS Project Aligns with Vision 2027 Energy Plan

The Alamo City BESS project is scheduled to begin operation by late 2026. It will play a crucial role in Vision 2027, CPS Energy’s roadmap to a balanced, reliable, and sustainable energy mix.

Vision 2027 includes plans for 1,710MW of natural gas, 500MW of firming capacity, 84MW of wind, and 730MW of solar. The addition of this battery storage system helps CPS diversify and decarbonize its energy infrastructure.

As a result, this project strengthens both energy resilience and cross-border cooperation between the US and South Korea in the energy transition.

The Metalnomist Commentary

The Alamo City BESS is more than a storage project—it’s a blueprint for municipal utilities navigating the clean energy transition. With players like OCI, CPS, and LGES joining forces, we’re seeing the integration of international technology with local grid needs. Expect similar regional collaborations to follow as US battery storage demand accelerates through 2030.

Global Energy Investment to Reach $3.3 Trillion in 2025, Led by Clean Energy

IEA(International_Energy_Agency)

Clean Energy Spending Doubles Fossil Fuel Investment

Global energy investment is forecast to hit a record $3.3 trillion in 2025, with two-thirds allocated to clean energy technologies, according to the International Energy Agency (IEA). This marks a 2% real-term increase from 2024, despite ongoing geopolitical tensions and economic uncertainty.

The IEA expects $2.2 trillion to be invested in renewables, nuclear power, grids, storage, low-emissions fuels, energy efficiency, and electrification. In comparison, fossil fuel investment is projected at $1.1 trillion. The agency attributes the surge in clean energy spending to emission reduction goals, industrial policy incentives, energy security concerns, and the competitiveness of electricity-based solutions.

Energy security remains a primary driver of investment growth. While some investors are cautious about new project approvals, the IEA notes minimal disruption to existing developments.

Electricity Sector Investment Surges While Fossil Fuels Decline

The “age of electricity” is shaping global capital flows, with the power sector expected to attract $1.5 trillion in 2025. Solar power will lead the charge, drawing $450 billion alone. However, grid investment, while reaching a record $400 billion, is struggling to keep pace with soaring power demand.

Conversely, fossil fuel supply investment is expected to fall 2% — the first drop since 2020. Upstream oil spending will decline 6% to about $420 billion, while gas investment will also retreat amid price drops, higher operating costs, tariffs, and oversupply concerns. Coal investment will continue to grow, though at a slower 4% annual rate, driven largely by China and India.

Regional Shifts and Policy Impacts

China remains the largest global energy investor, with its share of clean energy investment rising from 25% a decade ago to nearly one-third today. In the US, investment in renewables and low-emission fuels is set to plateau as supportive policies wane. Meanwhile, oil and gas spending is increasingly concentrated in resource-rich Middle Eastern nations.

Spending on low-emissions fuels is projected to hit a record in 2025 but will stay below $30 billion, with projects vulnerable to policy uncertainty. The IEA warns that regional disparities in policy and market dynamics could influence the pace of the clean energy transition.

The Metalnomist Commentary

The IEA’s projection underscores the accelerating momentum of the clean energy transition, even amid economic headwinds. While record spending on renewables and electricity infrastructure marks progress, bottlenecks in grid expansion and regional policy uncertainties could challenge the pace of change. Investors and policymakers will need to address these gaps to secure long-term energy security and decarbonization goals.

Brazil's BNDES and FINEP Announce R$5 Billion Investment in Strategic Minerals Projects

BNDES

Brazil's National Bank for Economic and Social Development (BNDES) and the Financing Agency for Studies and Projects (FINEP) have unveiled a joint investment of R$5 billion ($821 million) to bolster strategic minerals projects within the country. This significant funding initiative aims to stimulate the development of pilot plants and commercial-scale operations for key minerals vital to various industries.

Target Minerals and Project Focus

The investment will specifically target projects focused on lithium, rare earth elements, nickel, graphite, and silicon. These minerals are crucial for the production of advanced technologies, including batteries for electric vehicles and photovoltaic cells for solar energy. The funding will support both the construction of pilot and commercial-scale plants, as well as crucial studies aimed at expanding Brazil's industrial capacity in these strategic sectors. The initiative is designed to attract further private investment, fostering growth in the domestic production of these essential materials.

Driving Clean Energy and Sustainable Development

BNDES stated that this investment aims to support the increasing domestic demand for solar and wind power. Brazil has made significant strides in clean energy production, with 91% of its power coming from clean sources in 2023. Wind and solar power accounted for approximately 20% of this clean energy mix, a notable increase from 16.6% in 2022, according to energy transition think tank Ember. By supporting the development of strategic mineral resources, Brazil aims to further its commitment to sustainable energy and reduce reliance on imported materials.

Brazil's Mineral Wealth

Brazil possesses significant reserves of several key minerals. The country holds the world's largest reserves of niobium and is the leading producer of this element, which is used in various applications, including alloys, tools, dies, and superconducting magnets.  Brazil also boasts the second-largest natural graphite reserves, ranks third in nickel and rare earth element reserves, and holds the fifth and third-largest lithium and silicon reserves, respectively, according to BNDES. This abundance of natural resources positions Brazil as a potential key player in the global supply chain for these critical minerals.

Industry Calls for Labour to Publish UK Solar Roadmap

The UK's Labour government is being urged to release a comprehensive "solar roadmap" to accelerate solar capacity expansion. Solar Energy UK (SEUK) recommends basing this roadmap on a draft from the UK’s solar taskforce, aiming for 70GW by 2035. Additionally, SEUK advises increasing the budget for the UK's CfD scheme, with results expected in September.

Chris Hewett, SEUK CEO, highlights Labour's first year as critical for solar and energy storage sectors, crucial for energy security, cost reduction, and climate action. Labour's goals include doubling onshore wind, tripling solar power, and quadrupling offshore wind by 2030.

The UK saw an increase of over 850MW in renewable capacity in the first quarter, with solar photovoltaics contributing 776MW, reaching 16.7GW.

Updates Mining Rebate Rules: What You Need to Know

US Mining

The United States has introduced significant updates to its mining rebate rules, affecting companies in the mining and materials processing sectors. The U.S. Treasury Department and the Internal Revenue Service (IRS) released definitive rules on Thursday regarding the Section 45X advanced manufacturing production credit, a part of the Inflation Reduction Act (IRA) of 2022. This credit was designed to foster investment in the U.S. manufacturing of components for wind, solar, and battery systems.

Key Changes to the Mining Rebate Rules

The new regulations bring forth an important adjustment for mining companies, particularly regarding "extraction costs." Previously, under the proposed guidance issued in December, extraction was not considered part of the production costs eligible for the 10% rebate. The rationale was that the extraction process was seen as too far removed from the ultimate production of an eligible component, such as those used in wind and solar energy systems.

However, after considerable feedback from stakeholders, the Treasury Department and IRS revised their stance. The updated rules now allow mining companies to claim the rebate for their extraction costs, provided the raw materials are processed into an eligible component. For example, lithium must be refined into lithium hydroxide, which can then be used directly in the production of batteries.

While the regulators acknowledged the importance of value-added processing activities, such as refining and purifying raw materials, they also clarified that "the action of extraction alone does not produce an eligible component." This decision effectively allows certain mining activities to qualify for the credit, but it is important to note that extraction alone, without subsequent processing, does not meet the eligibility requirements.

Industry Reactions and Future Implications

The updated guidance has generated mixed reactions within the industry. On one hand, groups representing mining companies welcomed the inclusion of extraction in some capacity, recognizing the importance of the sector in the overall supply chain for clean energy technologies. On the other hand, some stakeholders, including the National Mining Association (NMA), expressed disappointment over the narrow scope of the final rules.

Rich Nolan, CEO of the National Mining Association, argued that the decision to limit the rebate to producers who also refine materials would exclude many crucial projects from benefiting from the credit. He suggested that this limitation goes against the intentions of Congress in fostering a robust domestic supply chain for critical minerals.

The Bigger Picture: Supporting Clean Energy and Domestic Manufacturing

This policy shift reflects a broader push by the U.S. government to bolster clean energy production and reduce reliance on foreign sources of critical minerals. The Section 45X advanced manufacturing production credit is an essential part of the Inflation Reduction Act, which aims to position the U.S. as a leader in the production of clean energy technologies. As the demand for minerals like lithium, nickel, and cobalt grows—critical materials for battery production—the role of domestic mining and refining becomes increasingly important.

Mining companies, however, will need to balance the rebate’s requirements with the investment needed for refining capabilities. Many smaller mining operations may struggle to meet the additional processing requirements, potentially leaving them at a disadvantage compared to larger, more established companies with the necessary infrastructure.

In conclusion, the update to the mining rebate rules marks a step forward in supporting domestic mining and clean energy initiatives but leaves room for further development. The debate over the scope of the credit is likely to continue as stakeholders assess its impact on the industry and its ability to meet the growing demand for clean energy components.