economy
March 22, 2026
The Price of Destruction
In 2025, record capacities of 814 gigawatts for solar and wind power generation were built worldwide.
TL;DR
- War in Iran and potential Strait of Hormuz blockade caused a ~30% rise in European gas and oil prices.
- Record 814 GW of solar and wind capacity were built globally in 2025, a 17% increase year-on-year.
- New renewable capacity could replace over a seventh of global gas-fired electricity production.
- Higher gas prices increase electricity costs, as the most expensive source sets the benchmark price.
- EU paid an extra €2.5 billion for gas imports in the first ten days of the Iran war.
- Spain, with 56% of electricity from renewables, is less exposed to volatile gas prices.
- Global solar and wind power saved over $40 billion since the start of the Iran war.
- Solar energy dominated new capacity additions, reaching 647 GW installed in 2025.
- Cumulative global solar capacity neared 2,900 GW by the end of 2025.
- Wind energy capacity grew significantly, reaching 167 GW installed in 2025 and a cumulative ~1,300 GW.