Shine, baby, shine: Solar energy is fuelling the energy transition at high speed

(Oslo, 28 October 2025) “Competitive renewable technologies such as solar, wind, and batteries are significantly driving the shift away from fossil fuels to renewables. Our analysis shows that the development of renewables continue at a rapid pace, with solar as a leading technology, even in a scenario of global unrest,” says Torjus Folsland Bolkesjø, Head of Global Energy Drivers and author of Statkraft’s new Green Transition Scenarios report. 

Statkraft has published its annual report on the pace of the energy transition. It analyses developments across three scenarios: A green optimistic scenario, a scenario where the transition is delayed, and one marked by global unrest. 

In the green scenario, global warming can be limited to 1.9 degrees, in line with the Paris Agreement’s 2 degrees goal, but not sufficient for 1.5. However, if progress in the energy transition doesn’t continue at a high pace, the report predicts a temperature increase of around 2.4 degrees, with major consequences for people and the planet.  

“Our scenarios show that it is still possible to reach the 2-degree target of the Paris Agreement, but this requires a significantly faster pace of emission cuts than we see today. Geopolitical tension and economic and political challenges impact the speed of the energy transition, but the rapid cost reductions for mature technologies such as solar, wind, and batteries mean that the bulk of global CO2 emission cuts are still within reach. At the same time, we see that the last and most challenging emission cuts – especially in parts of the industry and long-distance transport – are becoming harder and more expensive than previously assumed,” says Bolkesjø.

“Renewable energy is the key to success, not only to replace coal and gas power, but also to accelerate electrification of transportation and heating. A key for the future growth is to adopt more flexibility solutions to integrate more renewable power. Statkraft can play a crucial role in achieving this through our competence in balancing energy markets and investing in flexible solutions,” says Head Analyst and lead author of the report, Mari Grooss Viddal.  

The strong global growth in renewable technologies continues, with new records set annually. In 2024, investments in clean energy and infrastructure continued to increase, and amounted to almost double those investments in fossil fuels globally according to the International Energy Agency (IEA) and Ember. In our global scenarios, solar generation will grow 3-6 times from 2024 to 2035 and 6-12 times to 2050. Renewables share globally will exceed 50 percent by 2035 and cover 66-80 percent of the power mix by 2050.   

“We expect that annual clean power production shortly will increase more than global power demand, meaning that ‘peak’ emissions from the power sector are likely behind us,” says Viddal.

Renewable energy is not only crucial for achieving climate targets, but also for ensuring energy security and competitiveness in Europe. Low costs and short construction times make solar and wind the most important clean technologies, and renewable electricity replacing fossil gas in industry processes may also increase European industry competitiveness.  

The EU has already reduced its greenhouse gas emissions by more than a third since 1990, while the economy has grown by two-thirds. “This shows that it is entirely possible to cut emissions and simultaneously create economic growth,” says Bolkesjø. 

The report is based on Statkraft’s unique market insight as Europe’s largest generator of renewable energy and its 130 years of experience in developing and operating renewable energy in weather-dependent energy systems. It identifies key trends across all scenarios: 

• Solar and wind power are set to become the world’s largest energy sources by 2035. 
• The remarkable drop in battery costs enables critical flexibility, necessary for deploying more wind and solar power. 
• Electricity consumption will rise sharply, while total energy consumption will decrease as we move away from fossil fuels. 
• Gas will remain part of the energy mix longer than expected, as hydrogen face scaling challenges. 
  

Read the full report here: https://direc.to/nEV_

For further information, please contact:
Marte Lerberg Kopstad, International Media Relations Lead, Statkraft AS
Phone: +47 995 22 026
E-mail: martelerberg.kopstad@statkraft.com

About Statkraft
Statkraft is a leading company in hydropower internationally and Europe’s largest generator of renewable energy. The Group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has around 7,000 employees in more than 20 countries.