Clean energy deployment continued to grow in 2025, according to McKinsey & Company’s report, Investing in the energy transition: Time to look at whole-system value. Despite the rise in clean energy, global energy demand also increased, with fossil fuel use remaining substantial.
Solar capacity surged by 30%, but oil demand rose by approximately 1.3 million barrels per day, and coal consumption hit a record high. Overall energy demand grew by 1.3%, consistent with growth rates since 2013, indicating that various energy sources are expanding simultaneously rather than replacing one another globally, with significant geographical variations.
In 2025, global energy system investments totaled about $3.3 trillion. Of this, around $1.8 trillion went to fossil fuels, power generation, and low-carbon technologies, with upstream oil receiving about $540 billion, while solar investments reached roughly $440 billion.
McKinsey emphasizes that investment levels do not necessarily correlate with the value that technologies provide to the energy system. As energy consumption and generation rise, the infrastructure needed for connectivity, balance, and supply security—like grids, transmission systems, storage solutions, and flexible backup—must also grow.
The report advises that investment decisions should focus on system resilience and economic efficiency while maximizing the benefits of clean energy deployment to minimize global emissions. It suggests that policymakers, investors, utilities, and industries should combine low-carbon power with flexibility and diversified supply chains, while also addressing permitting delays and expediting transmission development.
