Despite the “Trump Effect,” Renewable Energy Investment Smashes Records with $386bn in First Half of 2025

Global investment in renewable energy projects climbed to an unprecedented 386 billion dollars in the first half of 2025, a ten per cent increase compared with the same period last year, according to BloombergNEF. Much of this momentum was driven by a surge of interest in offshore wind and small-scale solar, which together helped counterbalance the chilling effect of President Donald Trump’s rollback of US clean energy subsidies.

BloombergNEF’s latest Renewable Energy Investment Tracker paints a picture of remarkable resilience. Despite supply chain challenges and shifting political landscapes, the global appetite for renewables remains intact and is accelerating.

Offshore wind alone attracted $ 39 billion in financing commitments globally between January and June. To put that in perspective, this figure already surpasses the 31 billion dollars invested during all of 2024.

The European Union has taken a different approach. Investment in renewable projects across the EU increased by 63 per cent in the first half of 2025 compared to the latter half of 2024, amounting to more than $ 30 billion in additional capital.

Germany and France registered their most significant solar investments since the early 2010s, while Italy and Romania benefited from supportive government auction mechanisms that encouraged further solar development.

The United States, meanwhile, posted the steepest decline in new renewable energy commitments. Spending collapsed by 36 per cent compared with the previous half-year period. Much of the downturn was anticipated. At the end of 2024, many developers rushed to start construction to secure tax credits before the federal elections. Now, under Trump, billions in subsidies introduced through Joe Biden’s Inflation Reduction Act are being stripped away.

BloombergNEF said its findings “support the idea that companies are reallocating capital out of the US and into Europe – particularly in offshore wind, where several developers refocused to North Sea sites over US projects”.

In solar, would-be investors in the US have mainly been lured by China and Saudi Arabia. Utility-scale projects in these regions remain the world’s most attractive.

“Renewable energy investors and developers are rethinking capital allocation and putting their money where project returns are strongest,” said BloombergNEF’s head of clean power, Meredith Annex.

Globally, growth was sustained not only by offshore wind but also by a surge in smaller onshore renewables such as community-scale solar and wind. Interestingly, investment in large-scale solar photovoltaic projects fell by twenty per cent year-on-year. Developers in markets ranging from mainland China to Spain, Greece, and Brazil faced higher curtailment rates, as grid expansion and storage capacity failed to keep pace with the rapid rollout of utility-scale solar.

This imbalance left operators more exposed to negative power prices in markets lacking long-term revenue certainty. Analysts at Annex warn that such pressures could continue to strain project pipelines. As a result, developers with more diversified portfolios have increasingly turned toward smaller projects, especially in markets with reliable government auctions or strong corporate demand for clean energy.

China, in particular, saw small-scale solar investment almost double compared to last year, contributing to a record global total of $ 159 billion in this segment. The European Union also emerged as a major contributor outside of China.

The United Kingdom cemented its position as a global leader in offshore wind, the only renewable segment still enjoying robust investment in large-scale projects. One of the standout deals of the year was the UK’s Red Rock and ESB Inch Cape Offshore Wind Farm, which secured around 4.3 billion dollars in financing, making it the world’s second-largest disclosed renewable energy deal in the first half of 2025. Only Poland’s PGE and Ørsted Baltica 2 Offshore Wind Farm ranked higher, with an estimated 7.2 billion dollars invested.

Inch Cape, located approximately 20 kilometres off the coast of Arbroath in Angus, Scotland, had already won a government-backed Contracts for Difference award in 2022. Construction of its onshore substation began in 2024, clearing the path for first power generation by late 2026. Full commercial operations are expected to start in 2027, with the facility contributing 1.1 gigawatts to the UK’s energy system.