Everyone wants cleaner skies and more sustainable energy generation at lower costs, but achieving those goals will be highly dependent on the profitability of investments in renewable energy projects – with or without policy support from governments. In Europe, the levelized cost of energy (LCOE) from solar PV and wind projects remains more expensive than the comparative numbers from the US and Australia, according to a recent analysis by our Renewables & Power team.

Despite this, solar PV generation has been growing by 23% year-to-date (including August) and wind has been growing by 9%. Fossil fuel-based generation is currently at 22% only, down from 34% in 2019. Europe’s extensive rollout of solar and wind power generation in recent years has had an unsavory side effect, as day-ahead power prices have often turned negative when production from these intermittent sources is high while demand is low. Without sufficient demand and storage options, and with no way to regulate output, renewable power producers have little choice but to offload the energy onto the grid.

Do these developments spell doom and gloom for Europe’s renewable energy ambitions and climate goals, or will investments into storage and grid resolve the issues and quickly nurture an affordable and sustainable power sector in Europe?

I welcome you to join us for a thought-provoking session on Thursday 19 September, as we present the latest edition of Rystad Talks Energy. The focus this month is the profitability and future investment outlook for renewables across Europe, including insights into the evolving LCOE and capture rates of different energy sources over time. We will explore the latest business models driving the renewable sector, highlighting the trends that are defining how companies approach the future of energy.

Additionally, we will examine the role of gas in renewable volatility buffering, along with key policies and gas capacity additions across Europe. For fresh angles and deeper insights into this important topic, I look forward to a constructive conversation with our guest speaker Katinka Bogaard, Managing Director at Volt Power Analytics. 

Topping off the program, Per Magnus Nysveen, Head of Analysis in Rystad Energy, will present five key trends in energy, offering insights into current and emerging changes in the industry.