Renewable Energy and the Power Needs of an AI Future
Developments as of November 13, 2026
A solar panel produces electricity when sunlight reaches it. A household needs power after sunset, and a computing facility may need it throughout the night. Much of the next stage of renewable energy development will be shaped by that practical difference.
The central task is bringing generation, storage and electricity networks together so that cleaner power is available when it is needed. Recent developments show considerable progress, alongside difficult questions about costs and the delivery of new projects.
1. Solar remains the main engine, although its manufacturers face a difficult market.
The International Energy Agency expects solar to account for roughly three-quarters of renewable capacity expansion through 2031. Its outlook nevertheless forecasts an 11% decline in annual renewable installations in 2026, largely because solar deployment in China has slowed following policy changes. Installed capacity continues to grow, even when the amount added in a year falls.
One promising advance is the tandem solar cell, which combines materials that absorb different parts of sunlight. LONGi reported a certified silicon–perovskite research-cell efficiency of 35.5% in July. Turning that achievement into widely available panels will require durable products and economical manufacturing.
The business picture is less comfortable. The IEA reports that more than 90% of major Chinese solar manufacturers have recorded losses this year. Excess production capacity and falling prices have squeezed margins. Buyers may benefit from inexpensive panels while the companies making them struggle financially.
2. Batteries are becoming central electricity infrastructure.
Batteries allow some electricity generated during sunny or windy periods to be saved for later. They also respond quickly to disturbances on the grid. Lithium iron phosphate, or LFP, dominates grid battery deployment because of its cost, suitability for repeated use and thermal stability. It requires neither nickel nor cobalt.
Sodium-ion batteries offer another possibility, particularly where abundant materials and cold-weather performance matter. CATL unveiled its TENER Sodium storage system in June, announcing initial Chinese deliveries for September and international deliveries from June 2027. These are company-announced milestones. Commercial performance and delivered costs will determine how effectively sodium-ion competes with established LFP systems.
Storage duration remains a crucial distinction. A battery designed to supply four hours of electricity cannot, by itself, carry a community through several days of poor renewable generation. Longer-duration storage technologies are being developed, while hydroelectricity, transmission links and other controllable supplies remain important to reliability.
3. Advanced geothermal has reached an important commercial milestone.
Geothermal energy uses underground heat, providing an option that can operate through the night and during unfavourable weather. Improved drilling methods are expanding the possibilities for developing this resource.
Fervo reported that the first 33-megawatt unit at Cape Station, Utah, entered commercial operation on September 30. Its November update also disclosed a 396-megawatt electricity supply agreement with Google, with first power expected in 2028. The operating unit and the future supply agreement represent different stages of development, but together they show how demand from computing companies can support geothermal investment.
Canada’s Eavor takes a different approach, circulating fluid through sealed underground loops to collect heat. Its Geretsried project in Germany has generated electricity. The company’s technical account also describes substantial drilling challenges, illustrating the work still required to make these systems repeatable and economically competitive.
The key players and their direction
The following companies represent several important areas of activity. Their inclusion identifies businesses to follow; it does not establish their investment merits.
Area | Companies to watch | Current direction |
Solar manufacturing | LONGi, JinkoSolar, Trina Solar, First Solar | Higher efficiency, manufacturing diversification and pressure on margins |
Batteries and storage systems | CATL, BYD, Sungrow, Tesla, Fluence | Larger storage deployments and closer integration with renewable generation |
Wind turbines | Vestas, Siemens Gamesa, GE Vernova, Goldwind, Mingyang | Competition over project economics, reliability and international markets |
Advanced geothermal | Fervo, Eavor | Demonstrating that new drilling approaches can support repeatable commercial projects |
The established equipment suppliers listed here appear in S&P Global’s 2026 cleantech assessment. Fervo and Eavor are included for their geothermal project developments.
Wind provides a useful reminder that growth in an industry does not translate evenly into company results. Vestas reported higher revenue and profitability in its latest quarter, alongside a 27% decline in turbine order intake from a year earlier. Orders, construction costs and operating performance all deserve attention when assessing the sector’s direction.
4. Hydrogen is advancing more slowly than early enthusiasm suggested.
Hydrogen produced using renewable electricity could help reduce emissions in industries that need hydrogen or suitable fuels. Its expansion, however, depends on customers willing to pay for it, affordable electricity and infrastructure for handling the product.
The IEA’s latest hydrogen review describes persistent cost gaps, uncertain demand, and project delays and cancellations. Nearer-term opportunities remain concentrated in chemicals, refining and hydrogen-based fuels. A proposed project becomes much more convincing when it has committed financing and customers under firm contracts.
5. There is tangible movement close to home.
In May, BC Hydro awarded electricity purchase agreements to four wind projects totalling 1,158 megawatts. Each involves a First Nation partner. The developers include Innergex, Elemental Energy, RES Canada and EDF Power Solutions Canada. These agreements support future supply; the projects should not be counted as electricity already being generated.
Ontario offers an example of storage already operating. The 300-megawatt Hagersville facility, which began commercial operation in February, has enough stored energy to deliver full output for four hours. Such installations show how batteries are becoming part of the infrastructure used to manage electricity demand.
6. AI’s growing electricity needs could reshape renewable energy development.
AI depends on physical equipment that consumes electricity and produces heat. As more people and businesses use these systems, demand from the data centres housing them is expected to rise substantially.+__
The IEA projects that global data-centre electricity consumption will roughly double from 485 terawatt-hours in 2025 to 950 terawatt-hours in 2030. Electricity use by AI-focused facilities could triple over that period. The broader data-centre total includes services beyond AI. These are projections, influenced by computing efficiency, investment conditions and how widely AI is adopted.
This creates opportunities for renewable energy developers. Technology companies accounted for around 40% of corporate renewable power purchase agreements signed in 2025. Long-term purchase commitments can help developers secure financing, while computing companies’ need for dependable supply is also encouraging advanced geothermal investment.
Supplying that electricity reliably requires attention to when and where it is generated. Annual renewable purchases do not, by themselves, establish that a facility runs on renewable electricity every hour. Solar and wind need support from storage, suitable grid connections and complementary sources. The IEA expects renewables to meet a substantial share of additional data-centre demand, alongside contributions from other energy sources.
There are consequences for the communities hosting these facilities. Large new loads can intensify pressure on electricity networks and raise concerns about affordability. The IEA identifies grid access, equipment shortages and public acceptance among the constraints on further expansion.
In my view, agreements with large computing operators should make clear how the additional infrastructure will be funded and how existing customers will be protected. AI may help finance useful new energy capacity. Whether that expansion benefits the wider community will depend on the terms under which it proceeds.
The developments worth following are those that make dependable clean electricity more practical: panels that produce more from the same area, storage that performs economically, and projects that reach operation. AI adds urgency to that work. Its growing power requirements also give governments and communities a reason to examine who pays, who benefits and how the electricity system will serve everyone who depends on it.
Data Sources
International Energy Agency — Renewables 2026: renewable electricity outlook and executive summary. [IEA] [IEA]
LONGi — July 2026 announcement of certified silicon–perovskite tandem research-cell efficiency. [LONGi]
Canada Energy Regulator — Battery storage technology and its evolving role in electricity systems, including the Hagersville project. [Canada Energy Regulator]
CATL — June 2026 announcement of the TENER Sodium energy storage system and delivery plans. [CATL]
Fervo Energy — Third Quarter 2026 Results, November 9, 2026: Cape Station operations and Google supply agreement. [Fervo]
Eavor — Technical update from Geretsried: drilling results, electricity production and remaining development challenges. [Eavor]
S&P Global Energy — Tier 1 Cleantech Companies 2026: solar, wind and energy storage supplier assessment. [S&P Global]
Vestas — Interim Report, Third Quarter 2026: financial performance and turbine orders. [Vestas]
International Energy Agency — Global Hydrogen Review 2026: executive summary. [IEA]
Government of British Columbia and BC Hydro — May 13, 2026 announcement of projects selected through the 2025 call for power. [BC Hydro]
International Energy Agency — Key Questions on Energy and AI: executive summary, and accompanying April 16, 2026 news release. [IEA AI outlook] [IEA AI update]
International Energy Agency — Energy and AI: electricity supply for data centres. [IEA energy supply]
Forecasts describe possible future outcomes under stated assumptions. Company announcements document reported achievements and plans; they are not guarantees of future performance.
Reflections may be shared beyond this page.
