Geopolitical conflict to drive renewables surge
Geopolitical conflict to drive renewables surge

Geopolitical conflict to drive renewables surge

Renewables are already experiencing major growth, spurred on by COP26 commitments and net-zero targets. Now, new Edison research suggests Europe’s geopolitical crisis will accelerate the replacement of foreign fossil fuel imports, putting renewables into overdrive. In the face of volatile suppliers, the EU and UK are putting a higher priority on energy security. In our new report, European renewables: An increasingly attractive environment, we reveal what new regulations are likely to mean for growth in European wind and solar markets. We look at which companies may benefit the most and the value implications across the supply chain. The report explores how wind and solar markets could grow at CAGRs of 23% and 12% respectively over this decade. Among the primary beneficiaries are developers, who could see enhanced double-digit returns on capital. Equipment manufacturers and services providers will also likely benefit, along with stationary battery storage and green hydrogen electrolysation. Other observations in the report include:
  • The EU is expected to produce more than 65% of its electricity from renewables by 2030, based on a 30% increase in electricity demand, driven by electrification of transport and heating.
  • The likely increased appetite for corporate power purchase agreements, the long-term contracts under which businesses agree to purchase electricity directly from an energy generator.
  • Grid infrastructure and energy storage companies are expected to benefit hugely from private and government investment, likely to be measured in billions of euros and pounds.
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Edison clients mentioned in this report*
BayWa Foresight Solar Fund Gresham House Energy Storage Hellenic Petroleum Jersey Electricity
Loop Energy Mytilineos Premier Miton Global Renewables Trust Provaris Energy visaVento
*For full list of companies mentioned in the report see Exhibit 13



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