European Energy Transition Opportunity

Sustainable infrastructure, and in particular renewables, is one of the fastest growing sectors within the real assets investment class.

It offers a transformative way to mitigate climate change and brings a multitude of benefits to society, the economy, and the environment.

Sustainable infrastructure is urgently required

A significant scale up in the planning, development and management of clean power infrastructure assets is required to deliver a secure and sustainable energy future for Europe.

The European Union is targeting a 55% reduction in greenhouse gas emissions by 2030, with a view to becoming the world’s first “climate-neutral bloc” by 2050. Over €1 trillion of investment into sustainable infrastructure is needed to meet Europe’s 2030 decarbonisation targets.

As well as the urgent need to decarbonise, this infrastructure addresses Europe’s energy security needs, by moving from a fossil-based energy system to an electricity-led system.

Wind and solar are complementary

Wind and solar PV are now the cheapest form of new-build electricity generation in almost all major markets, coming in cheaper than coal and gas plants, and have become the backbone of the electricity system.

Wind and solar energy production output will need to triple across Europe for the EU to be in with a chance of hitting its desired capacity levels by 2030.

Wind and solar resources complement each other in terms of their daily and seasonal availability. Wind energy production tends to be higher during nighttime and winter months, while solar energy generation peaks during daylight hours and summer seasons.

Role of grid services and energy storage systems

Wind and solar energy generation can be intermittent due to weather conditions. Energy storage systems help smooth out these fluctuations by storing excess energy when generation is high and releasing it when generation is low, thus ensuring a more consistent and reliable energy supply.

They contribute to grid stability by providing ancillary services such as frequency regulation and voltage support. They can respond rapidly to fluctuations in supply and demand, helping to balance the grid and prevent blackouts or brownouts. They also help manage peak electricity demand by storing energy during off-peak hours when demand is low and discharging it during peak hours when demand is high.

By enabling greater integration of renewable energy sources and, by providing an alternative to fossil fuel derived grid stability services, energy storage plays a key role in facilitating the energy transition.

Targeting the opportunity

The energy transition is creating significant investment opportunities across Europe.

Our specialist clean energy infrastructure expertise plays a vital role in delivering on this ambition.

We are uniquely placed to promote the green energy transition because we have deep expertise in clean energy asset management. It’s what sets us apart from our competitors.

Having worked in renewables for so long, we have what it takes to choose the best assets, operate them to their potential and in a sustainable fashion, whilst ensuring safety, security and longevity.