(13 April 2022 – Europe) As the Eastern European conflict between Russia and Ukraine enters its second month, analysts assert that the conflict will hasten the transition to low carbon energy production and support broader clean energy production.
Global investment in clean energy and energy efficiency must triple by 2030 to US$2.3 trillion per annum for renewable energy to replace fossil fuels in the energy mix according to new research by JPMorgan. By 2050, the share of power from renewables globally is expected to rise to 60 percent from current levels of only ten percent, spurred forward chiefly by solar, wind, and hydropower. Fossil fuels are expected to contract from almost 80 percent of energy supply to only a fifth according to the International Energy Agency’s Net-Zero by 2050 Roadmap.
“We believe the war will only accelerate the build out of renewables and hopefully simplify and accelerate the permitting process. Prices for long-term renewable power purchase agreements (PPA) have increased as corporations want to purchase ‘green’ electricity at prices which are significantly below current spot prices. Renewable generation owners and developers also have produced strong returns recently as renewables combine decarbonisation with energy independence” commented Resolution Capital Portfolio Manager, Jan de Vos.