The rise of renewable energy has been a success story over the past decade, and despite a recent fall in investment in European renewables due to subsidy reductions and auction access, all signs point towards further growth.
New investment in renewable energy is, however, fast approaching a key milestone: reliance on subsidy free power generation. As this milestone is reached, industry incumbents will have no option but to adapt to what a subsidy free market means for the industry and their business models. This new era will present challenges and opportunities in equal measure. Competitive advantage is likely to be achieved by those that are best able to understand and manage merchant risk, engage with and develop corporate PPAs (CPPAs), and help tackle intermittency through energy storage solutions.
Europe will lead the way in this journey, but the Asian market will follow and face the same challenges. In the meantime, fragmented regulation is the primary hurdle for the growth of renewable energy in Asia.
WFW has been in the renewable energy sector since its inception, and through our sector focussed approach we have remained at the forefront of the industry and are well placed to observe these trends.
This report, based on interviews with 150 senior level investors, financiers, developers and utilities based across Europe, South East Asia and the Middle East provides insight at this pivotal moment for the renewable energy sector and identifies regional and global trends, as well as key issues that will shape the future of renewable energy.