👋 Hi , Watt Wizards !

Thanks for making time today—we know inboxes are busy and decisions can’t wait. This week’s edition keeps it simple and useful: what just happened, why it matters, and how to act on it without getting lost in the noise.

Here’s the vibe. Offshore wind just took a big step up in scale, storage is growing faster than anyone expected, and a few policy shifts could quietly change where projects get built—and financed—next.

Think of this as your friendly brief from a teammate who does the digging, then hands you the signal without the spin.

🔦 Today’s Highlights:

  • 🌊 JERA-bp complete offshore wind mega-merger.

  • Global BESS deployments surge 54% in H1 2025.

  • 💰 Renewables M&A rebounds strongly.

  • 🏗️ Vietnam seeks offshore wind policy support.

  • 🧠 Bonus Chart

📊 Quick Metrics Dashboard

Metric

Value

Change

Clean energy investment in 2025

~$2.2T

Record high

RE invest ’24

>$2.0T

Record

RE capacity end ’24

~4.4 TW

+15% YoY

Clean power share ’24

>40%

New high

Solar PV LCOE ’25

~$24–96/MWh

Lower

Onshore wind LCOE ’25

~$28–75/MWh

Flat to ↓

Offshore wind LCOE ’25

~$70–140/MWh

Mixed

Battery pack price ’25

~$113–133/kWh

BESS turnkey ’24

~$150–190/kWh

↓ ~40% YoY

Solar adds ’24

~452 GW

Record

Wind adds ’24

~113 GW

Strong

🔍 What’s Trending

The $5.8B Offshore Wind Mega-Merger

Offshore wind just got a serious upgrade—and it’s global in scope. In August 2025, JERA and bp finalized a landmark $5.8 billion joint venture that fuses the deep experience and technical mastery of Japan’s energy giant and the UK’s offshore powerhouse.

With a portfolio spanning nine countries, 13 GW of net generating capacity (including 1 GW operational, 7.5 GW in development, and 4.5 GW in secured leases), and a disciplined blueprint for value-driven growth, this new entity—JERA/bp—is built to redefine what scale, capital efficiency, and East–West collaboration mean for the next wave of offshore wind projects.

Early signals? Accelerated project timelines, enhanced access to competitive financing, and a future-ready team that brings together the best of both worlds in clean energy leadership.

The deal closed August 1, 2025 ahead of schedule signalling strong regulatory support.

Component

Capacity

Strategic Value

Operational

1 GW

Immediate cash flow + expertise

Pipeline

7.5 GW

Growth, secured offtakes

Secured Leases

4.5 GW

Long-term optionality

Total Portfolio

13 GW

Global scale, competitive edge

Why It Matters:

  • East-West convergence: JERA's Asian operational excellence + bp's European development expertise = global access and purchasing power

  • Capital efficiency: 50:50 structure maintains discipline while accessing larger projects

  • Market positioning: Creates fifth-largest offshore wind developer globally with scale advantages

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🏗️ Projects

Global BESS Boom: 86.7 GWh in H1 2025

In 2025, battery energy storage has moved from sidekick to superstar. The first half of the year alone saw a record-shattering 86.7 GWh deployed globally—an eye-popping 54% increase year-over-year. June smashed monthly records with 7.96 GW/22.17 GWh commissioned across 109 projects.

China led the pack, accounting for more than half the new capacity and three mega-projects above 1 GWh. The scale and speed of this boom signal a new era for grids worldwide: with batteries supporting renewables, stabilizing markets, and powering up energy security in ways the sector’s never seen.

Region/Project

Capacity

Technology

Status

China (June 2025)

4,343 MW / 11,193 MWh

LFP + semi-solid state

54% of global deployment

Romania (Renalfa IPP)

258 MW solar + 1 GWh BESS

Solar-storage hybrid

2027 COD target

UK (Eku Energy)

130 MWh (Essex + Bucks)

NHOA Energy systems

Commissioned Aug 2025

Poland (OX2)

100 MW + 50 MW/100 MWh

Solar + storage hybrid

First IPP milestone

Why It Matters ?

  • Scale acceleration: Global pipeline now exceeds 412 GWh for full 2025

  • Technology evolution: Semi-solid state progression suggests next-gen commercialization.

  • Hybrid integration: Solar-plus-storage becomes IPP standard

⚠️ Risk Box :

  • Supply chain concentration: Heavy Chinese battery reliance creates geopolitical risks

  • Revenue compression: Rapid BESS deployment may cannibalise ancillary prices.

🤝 Mergers

M&A Rebounds: +384.6% Deal Value

Global renewables M&A is back in a big way for 2025. Strategic buyers are driving deal value to new heights—up an astonishing 384.6% in H1 alone—supercharged by surging demand from AI-powered data centers and disciplined capital allocation.

The landscape is being reshaped by headline deals like VINCI’s €380 million acquisition of Cobra IS and the merger of Renantis with Ventient, giving rise to a European IPP powerhouse with 3.6 GW of capacity. As digitalization and electrification pick up speed, these transactions signal where market confidence and asset value are heading next—offering fresh opportunities and new challenges for anyone investing in the energy transition.

Metric

Value

Note/Highlight

M&A Deal Value YoY

+384.6%

Highest jump in recent years

Share: Strategic Buyers

70% volume, 78% value

Operational synergy focus

Notable Deal (VINCI–Cobra IS)

€380M

Major grid/build-out player

Notable Merger (Renantis–Ventient)

3.6 GW capacity

Creates largest European IPP

Main Driver

AI/digital load demand

Data center expansion & electrification

Geographic Focus

EU lead, US rising

Regional hubs forming (Virginia, Texas)

Renewables M&A Share

Up 10.5% YoY

Sector momentum versus overall energy

This table highlights the scale, drivers, and strategic direction of the renewables M&A rebound, giving your readers at-a-glance insights for dealmaking and market analysis.

Why Does It Matter ?

  • AI demand shock: Data centers projected 8.6% of US electricity by 2035

  • Capital selectivity: Focus on smaller, adjacent acquisitions vs. mega-projects

  • Operational focus: Strategic buyers dominating over financial buyers

⚙️ Technology

Vietnam's Regulatory Challenge vs. Global Progress

Vietnam’s offshore wind aspirations are running into regulatory headwinds just as global renewables surge ahead. Despite ambitious targets of deploying 6 GW by 2030, developers face complex permitting processes, overlapping marine planning, and unclear legal frameworks.

Meanwhile, next-generation battery technology—especially grid-forming energy storage—is advancing rapidly worldwide, offering proven solutions for integrating variable renewables and boosting grid reliability. The divergence highlights how policy and innovation are shaping different speeds for clean energy progress across regions.

Metric / Topic

Vietnam Offshore Wind

Global Benchmark

What It Means

Target Capacity (2030)

6 GW

EU/UK >30 GW, China >55 GW

Vietnam’s ambitions are strong, but not yet competitive with leading markets.

Main Bottleneck

Permitting, marine planning

Streamlined (EU/UK), clear auctions

Policy complexity is slowing progress in Vietnam.

Legal Framework

Developing

Mature, well-defined

Uncertainty for investors and developers in Vietnam.

Biggest Opportunity

Policy reform, tech transfer

Offshore wind, gigawatt BESS

Alignment could unlock fast-track growth and investment.

Why Does It Matter?

  • Policy bottlenecks: Regulatory gaps can stall multi-billion investments

  • Grid-forming transition: Essential for >80% renewable penetration

  • Technology competition: Battery chemistry advancement accelerating

ClimateHack Weekly

ClimateHack Weekly

Weekly Climate News + Funding + Insights, in under a 5-minute read.

💡 Innovation

AI-Powered BESS & $1.2T Investment Requirement


Battery Energy Storage Systems (BESS) are evolving into the backbone of the clean energy transition—with artificial intelligence (AI) and advanced analytics now unlocking unprecedented efficiency, reliability, and grid value. As global renewables surge, the market faces a projected $1.2 trillion investment need for storage by 2034, according to Wood Mackenzie. This leap isn’t just about bigger batteries—it’s a race to smarter, more connected energy networks that keep the lights on as renewables take over.

Why This Matters

  • Grid stability at scale: AI-powered BESS can actively balance fluctuating renewables, prevent outages, and support grid-forming operations—all in real time.

  • Cost and lifetime optimisation: AI-driven battery management maximizes uptime, predicts and prevents faults, and extends asset life, driving higher returns.

  • Deployment at speed: $1.2T investment makes battery storage the fastest-growing grid asset; no country can accelerate renewables without it.

  • Solves integration bottlenecks: Smart, distributed storage systems help grids absorb spikes, respond to EV and data center loads, and meet peak demand with clean power.

Key Innovations Shaping BESS

  • AI-powered battery management: Predictive diagnostics, automated O&M, and smart dispatch maximize performance and minimize downtime.

  • Hybrid storage architectures: Batteries paired with solar/wind, often in modular clusters, use AI to switch between revenue streams and grid functions.

  • Energy Storage as a Service (ESaaS): Subscription and cloud-based models democratize access for commercial users, powered by digital platforms.

  • Next-gen chemistries: Semi-solid state, flow, and sodium-ion batteries enable longer duration and safer, smarter storage—often integrated with AI control.

Risk Watch:

  • High capital requirement strains supply chains and financing models globally.

  • AI and cloud-managed BESS introduce cybersecurity and interoperability risks as grids become more automated.

  • Early-stage tech means careful vetting for warranty, performance, and regulatory compatibility.

🔗 Sources :

📈 Chart of the Week : Where Is the Money Going?

Global clean energy is in the middle of its biggest investment wave in history In just the past year, funding for renewables, storage, and enabling technologies has reached record levels, while installed renewable capacity has accelerated at an unprecedented pace.

Our Chart of the Week breaks down where the money is flowing—from trillion‑dollar clean energy investments to the surging battery storage sector—and how these numbers are translating into real‑world megawatts powering the grid.

  • Clean Energy Investment (2024–25 Forecast): $2.2T

  • Renewable Energy Investment (2024): $2.0T

  • Battery Storage Investment (2025 Forecast): $66B

🔍 Editor’s Note:
This chart makes it clear: global clean energy investment is hitting record highs, and installed capacity is ramping up in parallel. Battery storage investment is surging—an essential trend for grid reliability and renewable integration. Use it for decision-making, quick presentations, or to spark conversations with your team about where capital is flowing and how fast the clean energy buildout is moving.

📚 Interesting Reads

Here are 8 crisp, high-signal reads with emojis and direct links for deeper dives.

  1. Germany’s no-bid offshore auction—Why Contracts for Difference (CfDs) beat negative bidding and what the latest auction result means for developers and policy.
    Read more

  2. Waratah Super Battery: The “shock absorber” model for grid flexibility in New South Wales.
    Read more

  3. $3.3T energy investment in 2025: Clean technology captures the lion’s share—IEA’s latest insights.
    Read more

  4. LCOE 2025: Solar and wind costs—where they’re headed and why contracts drive bankability.
    Read more

  5. AI/data center load meets policy flux: Demand shock in the U.S. collides with shifting incentives and energy sources.
    Read more

  6. Clean power >40% of global generation: Progress, new records, and what’s needed to solve grid bottlenecks.
    Read more

  7. Renewables M&A rebounds: Strategic buyers dominate, reshaping the sector amid the AI corridor boom.
    Read more

  8. Vietnam offshore wind: Vast resource, but a challenging regulatory maze—what to watch in Asia’s next frontier.
    Read more

If this newsletter were a renewable energy snack, how tasty was this issue ?

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