| | JUNE 20189many EU countries is creating a favourable environment for green energy production. These factors have encouraged the resurrection of many European markets which can capitalise on high irradiation or wind yield. Traditional markets like Germany and France have continued to increase installed capacity steadily. However, more countries have established mechanisms allowing the development of more Renewable energy project. A closer examination of some spot markets is revealing of current trends.Spain ­ Aims to decarbonise its energy generation by 2050 fully. With a very ambitious plan, the country aims to install 3GW of wind and solar energy every year for the next ten years. Over the last few years, we have witnessed an influx of new big projects and hundred of MW in development from a wide range of different developers. However, this "gold rush" is driven by PPA, and this exactly is where the risk is. The market can get quickly "overheated" with speculation and capacity hoarding. Therefore, many investors are taking a more conservative approach to the Spanish market.Portugal ­ The country aims to cover 80percent of its energy demand with Renewable Energy by 2030 and electrify 65percent of its economy, achieving carbon neutrality by 2050. The country prepared and launched a 1.75GW auction with the results expected on the 9th of August. Furthermore, Portugal will invest 474m into grid expansion and re-enforcement.Italy ­ Following the National Renewable Energy Action Plan, Italy is gearing up to launch seven renewable energy auctions. The first 500MW is planned for the 30th of September 2019. The overall plan is to add 4.8GW of additional green energy in the next two years.Greece ­ Following the stabilisation of the economic and the positive growth outlook in 2018, Greece decided to run annual CFD-like auctions both technology-specific and mixed. The country aims to tender 430MW and 300MW in 2019 and 2020 on technology pots and another 500MW on technology-agnostic auctions.New Business ModelsThe awakening of both the Oils Majors and the Utility companies has brought different vertically integrated business models into the market. Both are addressing the more aware retail market, which is willing to pay more for sustainable energy, and this is creating new market dynamics. Companies like Shell and BP are investing not only in generating assets but also in new innovative technologies across the cleantech board (from batteries to "smart" trading and EVs).This new competitive environment puts enormous pressure into the more traditional IPPs, which were the drivers of both the industry and the RE expansion to date. However, it is an undeniable testament to the fact that the industry is transforming and maturing.Europe has a unique opportunity to be at the forefront of the de-carbonisation agenda and lead the way to carbon neutrality. Investment in advanced analytics, AI, and services innovation, will drive forward further cheaper deployment of RE by capitalising on data and by transforming the grid. EC
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