Europe’s New Energy Transition Accelerating

Ukraine war sparks new energy pivot

16 May 2022 (Private Equity Wire)

“One of the key levers in the West’s response to Russia’s Ukraine invasion has involved the energy market. The US, UK and EU have all pledged to reduce their purchases of Russian oil and gas in the years ahead, improving energy security and making gas and oil prices less volatile in the long-term…[I]t appears that the new drive for energy independence and security will revolve around the energy transition to renewables…

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...[G]lobal renewable energy capacity is expected to rise over 60 per cent from 2020 levels to over 4800GW by 2026. Renewables will account for 95 per cent of the increase in global power capacity to that date with solar PV responsible for more than 50 per cent, given its lower cost of production than wind…China will remain the global leader in terms of capacity additions with it expected to reach 1200GW of total wind and solar capacity in 2026. India, Europe and the US alongside China account for 80 per cent of renewable capacity expansion worldwide…

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…[A]nother result of the Ukraine conflict is an “acceleration of investments in renewable and associated cleantech infrastructure [such as] faster hydrogen development and interconnection of EU electric networks”, according to a recent note from Bank of America…Movements are already being seen by governments…[Private equity] involvement is set to surge…[with continued investment in renewable energy and new capital] for hydrogen projects such as storage and electrolyser plants…[PE investment sources are calling] for a mature approach to the power and renewables sectors…[with technical expertise] to better understand the risk…” click here for more

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