| | JUNE 20188How the De-Carbonisation Agenda and the Reduction of CAPEX Drives the Forward Deployment of R.E. in EuropeRegardless of whether you believe in the future of renewable energy, it is an undeniable fact that solar and wind have established themselves as mainstream generating technologies across the globe.More and more often, we see records being broken and whole countries running for consecutive weeks on green energy alone. The UK, for example, ran for a fortnight without burning any coal for electricity breaking a national record earlier this year.China is the steam engine in this global transformation with Europe, US and India following behind. Global Energy Investment changesA closer examination of the global clean energy investment and capacity installations from 2010 onwards will reveal that for the last eight years total investments remained relatively stable, we managed to install more capacity reaching 179 GW (including hydro) in 2018, according to IRENA and BNEF. This reflects mainly the massive drop in CAPEX evolution, both in solar and wind, the development of more dynamic business models (based on corporate PPAs and direct sale to the retail markets) and the entry of mainstream Utilities and Oil Majors in the industry.However, it would be naive not to recognise some key factors driving this change outside the industry. So, what drives the change?Increased Demand ­ Electrification of our SocietyAll societies electricity demand will significantly increase over the next decade. Housing stock and buildings will be required to switch from gas to electric heating systems and temperature rise due to climate change will result in the need for electric-based cooling systems even in northern regions.The electrification of our transportation system from vehicles to planes and ships will demand a different electric grid with more flexible energy management and power flow.Industry driven mainly by the need to identify efficiencies will reduce risk (polluters will pay) and adoption of new standards will follow this trend.Environmental agenda For years environmental and social issues were a secondary concern. Today we see a massive shift both in corporates and consumers. Corporates are forced to consider the environmental and social impact of their assets and their operations. Consumers, and especially those belonging to Generation Y (Millennials) and Gen X become prosumers. They are aware, informed, and can very quickly self-organise putting pressure on both corporate and political agendas.Technology ­ Value shifts downstreamThe technology works as an enabler shifting value downstream to consumers. Value is shifted from conventional generation at utility-scale, downwards to grid transmission and distribution, to aggregated virtual trading and finally to distributed flexible generation and energy services platforms. Grid-connected EVs, residential PV, and battery systems will form part of broader energy management services and a new interactive mode of operation.Geo-EconomicsEurope has taken a strategic decision to reduce its dependency on oil & gas imports from countries outside the EU. Following the decision to decommission coal and nuclear stations, the only alternative is to invest further in large scale renewables.The current trends and spot markets: Renewables Energy The massive reduction in CAPEX and increase in efficiency allow renewable energy projects and especially solar PV to be developed in a subsidy-free environment. The reality is that the new Solar PV provides the lowest LCOE of any other generating technology. Furthermore, the carbon neutrality bill in the EU supported by By Ypatios Moysiadis, Business Development Director and UK Country Manager, GreenSolver UKIN MY OPINION
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