Europe Renewable Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Renewable Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Europe renewable energy market is expected to grow at a CAGR of more than 7% over the period of 2022-2027. The COVID-19 pandemic had a negligible effect on the renewable energy market in the nation, as many countries in the Europe such as Germany, United Kingdom and Italy has witnessed an upsurge in solar and wind power share in power production in 2021, even after a slowed industrial activity during the lockdown. Factors such as an increase in environmental awareness and regulations and decreasing cost per kilowatt of electricity generated from renewables are expected to provide a boost to the market. However, the high price of the storage of renewable energy is expected to restrain the market.

Key Highlights

• Wind Energy segment is expected to dominate the market as many wind farms have been built across South Europe. Large coastal borders with the Mediterranean Sea in Southern Europe with the peninsular regions like Italy and Iberia also provide for fertile ground for investments in offshore wind projects.
• New technologies and materials like the latest research going on the perovskites are expected to increase the efficiency of the solar cells, which is likely to act as an opportunity for the market players.
• Germany is expected to have largest share of solar energy among the nations, which is inturn expected to dominate the Europe renewable energy market during the forecast period.

Key Market TrendsWind Energy Segment is Expected to Dominate the Market

• With the increasing need for reliable, affordable, clean, and diverse electricity supply, the government and utilities across the nation are increasingly considering wind power as a solution. Moreover, with the country's unparalleled wind resources, there are ample opportunities to maximize the economic and environmental benefits associated with wind energy development.
• Germany, Spain, United Kingdom, Germany held the first-largest installed wind power capacity in the European region, with a total installed capacity of 63.760 GW in 2021. This installed capacity is enough to power approximately 3.4 million homes in the country. Also, as of 2021, cummulative wind power capacity in European Union stands at 235.950 GW.
• In May 2021, RWE and BASF planned to invest USD 4.9 billion in offshore wind power projects. As part of the project, RWE intends to build a 2 GW offshore wind park by 2030. The project aims to supply energy to BASF's Ludwigshafen chemical complex.
• Also, in October 2021, EnBW Energie Baden-Wuerttemberg AG acquired the rights to a 12.6 mega-watt wind power project in southern Germany, with construction set to start by the end of 2022 and likely to be commissioned by Q1 of 2023. The Keltenschanze-Weilerhoehe wind park is expected to generate about 25,000 mega-watt hour (MWh) of green electricity, which is enough to supply some 7,200 households.
• Furthermore, Europe invested EUR 41.4 billion in new wind farms in 2021. The investments cover around 24.6 GW of new capacity, which is a record for new capacity financed in a single year. Most of the wind farms financed were onshore type with 19.8 GW.
• Owing to above points, wind energy segment is expected to dominate the market during the forecast period.

Germany is Expected to dominate the Market

• The German government implemented a number of laws to encourage the development of renewables in the country, which concluded an appreciable share of solar technology in the power generation mix. The Federal Ministry of Economic Affairs and Climate Action passed many new legislations to reach the ambitious goal of an increased renewable power share.
• In July 2021, the European Union introduced new legislation to help meet its pledge to cut emissions of the gases that cause global warming by 55%, over this decade, including a plan to tax foreign companies for the pollution they cause. The plan also includes the expansion of solar and wind power in the North Sea region to reduce the GHG gas emissions in the power sector.
• Also, as of 2021, the cumulative solar photovoltaic capacity in Germany stands at 58.728 GW, an increase of around 5GW compared to the previous year.
• In December 2021, Enerparc signed a Power Purchase Agreement with RWE, the German power utility, for the development of a solar power plant in Lauterbach, Hesse, with a capacity of 57 mega-watt (MW). Around 125,000 solar modules will be installed on a 54-hectare site. The system is set to go into operation in the year 2022.
• Moreover, In November 2021, German solar installer and power plant operator Anumar GmbH announced plans to supply electricity from the 300 mega watt (MW) Anklam solar plant, which is currently under construction, to a regional utility Energie Vorpommern GmbH under a new cooperation agreement.
• Furthermore, In July 2022, Germany's federal parliament, Bundestag has approved a whole set of energy regulations, including a new version of the country's renewable energy law, known as the EEG 2023, which leads to some increases in solar feed-in tariffs within the country. This inturn culminates for the growth of solar energy within the region.
• Therefore, Germany is expected to dominate the Europe renewable ernergy market, with growing solar installations across the country.

Competitive Landscape

The Europe renewable energy market is fragmented. Some of the key players in this market are Enel Green Power S.p.A., ContourGlobal PLC, Acciona SA, Abengoa SA, and EDF SA.

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