Insights

Q3 2025 saw notable shifts in renewables across Europe and America. In Europe, expansion slowed for the first time in over a decade, largely due to reduced subsidies, placing 2030 targets at risk and exposing grid infrastructure bottlenecks. Despite this, investment rebounded, with major capital flowing into offshore wind and grid upgrades. In America, passage of the OBBBA eliminated federal support, driving industry consolidation and shifting attention to speed and scale in project delivery using storage and AI.

European Market Trends

Solar growth is facing setbacks amid policy shifts

Policy changes are slowing solar deployment across Europe. Cuts to subsidies in Germany, France, and the Netherlands have reduced projected installations. Despite solar briefly surpassing nuclear and fossil fuels in June, Europe is on track for 723GW of capacity by 2030 - below the EU’s 750GW target.

Grid infrastructure struggles to keep up with renewable energy growth

Wind and solar expansion continues to outpace grid development, creating saturation, negative prices, and reliability issues. Portugal faced major blackouts in Q2, prompting a €400m investment in grid upgrades and large-scale BESS. The European Commission has released new guidance on planning, connection charges, and tariffs to accelerate renewable integration.

Surge in renewable energy investments

Investment momentum remains strong, with capital shifting back to Europe after US market changes. Offshore wind in the North Sea is attracting significant attention, while Iberdrola’s €100bn commitment through 2031 highlights confidence in regional growth.

Decline in residential installations

Residential rooftop solar is weakening due to subsidy cuts and lower electricity prices in Austria, Belgium, Hungary, Italy, and the Netherlands. Utility-scale and C&I solar remain resilient, even as negative pricing pressures persist.

European Talent Trends

• Technical, Operational and Strategy: Rapid expansion to meet 2030 climate goals has created significant technical, operational and strategic talent needs. There is intense competition and skill shortages, fuelling focus on retention and new talent attraction, often looking at tech and construction sectors.
• Grid experts: Many developers/IPPs are looking for key grid experts with a mixture of engineering and commercial acumen, to help reduce project bottlenecks.
• UK growth: Recent reforms to the electricity grid which have created a favourable environment for new renewable projects is expected to create future demand for jobs.
• Key Project Leadership: Crucial for businesses to scale infrastructure, ensure timely project deliveries and navigate new regulations.
• Digitalisation & AI: Increasingly complex energy systems are creating the need for smart grid analysts, energy data scientists and AI-driven technology developers.

USA Market Trends

Policy shifts prompt industry consolidation

The July passage of Trump’s One Big Beautiful Bill Act eliminated key tax credits and $13B in federal renewable funding. This has driven M&A activity, with PE-backed firms and utilities acquiring projects and smaller companies. In August, CBRE Investment Management acquired ClearGen.

Investment in manufacturing continues to increase

Despite policy uncertainty, Q3 investment in clean energy manufacturing remains strong, supported by the IRA. Solar and battery OEM capacity continues to expand, though full vertical integration is constrained by reliance on imported components under new FEOC rules.

Renewable energy capacity growth slows

US renewable capacity is still growing but at a slower pace due to policy, permitting, and tariff challenges. Offshore wind faces setbacks, including a pause on Ørsted’s Revolution Wind project, while states like Texas, Arizona, Ohio, and Indiana see strong solar growth.

Data centre energy capacity demands

AI is driving energy demand, with data centres expected to add 100–200 TWh annually by 2030. Renewables and LNG will be critical. Google announced a $25B expansion of AI/data centre infrastructure across PJM in July.

USA Talent Trends

• Executional Leadership: Need for those who can drive projects NTP and COD quickly, with airtight processes and operational discipline.
• AI & Data Centre Demand: Creating opportunities for leaders who can navigate direct partnerships with data centre buyers and align utility-scale development with AI-driven demand.
• Community & Political Engagement: Developers increasingly require talent that can manage opposition to operate alongside technical delivery.
• Capital & M&A: Consolidation is accelerating the need for professionals skilled in structuring deals, managing portfolios, and attracting long-term capital.
• Policy Adaptation & Strategy: Leaders who can pivot quickly in response to shifting ITC/PTC timelines, FEOC guidance, and regulatory uncertainty are now essential.

You can read, download and share our full Q3 Market and Talent Review here: Hyperion Market Reviews