The European energy sector, as subsector of infrastructure, has experienced significant economic and technical change and transformation over the past decade.
The sector is evolving and expanding specifically in the renewable energy sector, following the ambitious objectives set by the European Union with a target of 27% of electricity generated from renewables by 2030. The energy transition will ensure that future generations are enjoying sustainable, stable and affordable cost for energy.
In our view, the sector is attractive for investors, based on the large number of opportunities, that offer investments in small and medium size projects as well as participating in larger scale utility projects. Investors are able to build and operate a diversified portfolio across different regions, countries and sectors.
Germany was the pioneer to commit to renewables and positioned itself as a leader in this technology. Since adopting this policy, Germany has been one of the global leaders in addressing the technological, regulatory and political challenges within the energy sector. This development also created jobs and contributed to Germany’s robust ‘Mittelstand’ in this sector.
The Nordics, specially Norway and Sweden, are also significantly advancing the renewable energy sector and took advantage of their natural hydrological resources to build and operate substantial electricity generation capacity without using valuable natural resources such as oil and gas.
Other countries including France, Finland, Ireland and Spain are following and experience further growth in the renewables market. This is thanks to a combination of efficient auction processes, administrative simplification and attractive subsidy schemes.
In addition, a number of countries have decided to phase out nuclear electricity generation and reduce reliance on gas and coal imports and CO2 emitting electricity generation.
Prime Capital is on the forefront of this mega trend and enabling investors to participate in the buildout of renewable energy generation and distribution and at the same time considering the interests of the community and stakeholders.