The Energy Transition Has Won the Debate — Now the Fight Is Over Economic Value

Clean energy generation has weathered geopolitical crises, wars, and economic instability without losing momentum. In 2025, the European Union reached a historic milestone by generating more electricity from wind and solar than from fossil fuels. This achievement effectively closes the debate over whether the energy transition will happen. The central question now facing governments, companies, and investors is who will capture its economic value.

Ronaldo Gerdes - CEO, UCB Power

According to the European Electricity Review 2026 report by energy think tank Ember, wind and solar accounted for around 30% of electricity generation in the European Union in 2025, surpassing the 29% share from fossil fuels. When combined with hydropower and other renewable sources, nearly half of the EU’s electricity mix is now clean.

This progress occurred despite an adverse backdrop marked by the reallocation of public investment toward defense and security. It signals a structural shift: the energy transition no longer depends solely on government subsidies, but increasingly stands on solid economic fundamentals.

Solar power at the core of the global transformation

The main driver of this growth is solar photovoltaics. In just one year, solar generation in the European Union grew by more than 20%, reaching approximately 13% of total electricity production. This trend, however, extends far beyond Europe.

Projections from the International Energy Agency (IEA) indicate that global renewable generation capacity will double by 2030, with nearly 80% of this expansion coming from solar power. China, India, and Europe are leading this movement, supported by industrial scale, technological innovation, and clear industrial strategies.

The decisive factor behind this acceleration is economics. The levelized cost of solar energy has fallen by roughly 90% over the past decade, making it one of the cheapest sources of electricity in many regions worldwide. At the same time, the volatility of fossil fuel prices has reinforced the understanding that energy security and decarbonization go hand in hand.

The new bottleneck: grid reliability

The rapid expansion of renewable energy also exposes a new structural challenge: grid reliability. Intermittent sources require complementary solutions such as energy storage, power electronics, intelligent load management, hybrid systems, and backup infrastructure.

As a result, the center of economic value in the energy transition is shifting. Beyond simply generating clean power, ensuring stability, availability, and resilience is becoming strategically critical. This is where technologies such as batteries and energy storage systems move to the forefront.

This shift is already reflected in global markets. Investments in clean energy now exceed spending on new fossil fuel projects, while segments such as energy storage, batteries, and power electronics are posting double-digit annual growth rates. Companies capable of delivering these solutions are becoming core players in the new energy architecture.

An industrial and geopolitical race

International comparisons reveal a strategic race. While Europe, China, and India continue to advance with clear industrial policies, the United States has slowed after revising subsidies and restricting projects on federal land. The result is a relative loss of competitiveness in sectors that are likely to shape economic growth in the coming decades.

The energy transition, therefore, is no longer just a response to the climate crisis. It has become an industrial, technological, and geopolitical strategy. Countries and companies that understand this new landscape investing not only in generation, but also in infrastructure, storage, and system resilience will be best positioned to lead the next global growth cycle. Ronaldo Gerdes - CEO, UCB Power

About UCB Power

UCB Power is one of the leading energy storage solutions brands in Brazil and Latin America. With more than 50 years of experience, the company combines deep expertise in electronics manufacturing with the operational agility required to serve multiple markets and applications.

A national leader in energy storage solutions for off-grid systems, UCB Power plays a strategic role in providing access to electricity in remote communities. Its broad and versatile portfolio includes lead-acid battery solutions, energy mobility systems, and portable batteries for mobile phones and laptops, supplied to major global players in the sector.

The company’s administrative headquarters are located in São Paulo, with manufacturing plants in Manaus (AM) and Extrema (MG), as well as an office in Porto Velho (RO). UCB Power also maintains commercial partnerships in Asia, with offices in Seoul (South Korea) and Shenzhen (China). A signatory of the UN Global Compact, UCB Power stands out for its commitment to innovation, sustainability, and access to renewable energy.

The Energy Transition Has Won the Debate — Now the Fight Is Over Economic Value