Funds Raised for Offshore Wind and Solar Assets Have Dominated the Financing Landscape Since Jan'23, accounting for $15bn and $11bn of Deals, Respectively
Spain Witnessed ~$7bn of Capital Raises in the Past 1.5 Years, While Greece Emerged as a New Hotspot with $1bn+ of Transactions
The Spanish landscape continues to garner the bulk of investor interest in Europe, driven by attractive IRRs. A European think tank recently iterated - "If you look at the LCOE of PV in South Spain, which is ~€20/MWh when you have market prices of €50-100, it's a no-brainer". Meanwhile, in Greece, solar development is spurred by feed-in-premiums under improved auction mechanisms, simplified permitting procedures and rise of bilateral PPAs
Onshore Wind Sees $4bn of deals, 50% of which were in Central and Eastern Europe; Offshore Wind Surges in Western Europe and Poland
The CEE region, led by countries including Poland, Serbia and Lithuania, have solicited $2bn+ of commitments, primarily due to attractive domestic subsidies offered to spur the growth of renewables. In Poland, onshore wind CfD prices are capped at ~$75/MWh. For Offshore Wind, Northland Power's $3.3bn deal for the Baltic Power Project in Poland was the sector's largest, while Ocean Winds secured ~$8bn for projects in France and UK
The UK Dominated the Battery Sector With ~$1.5bn of Transactions, Led Primarily by Private Equity-backed and Privately Funded Players
The UK is the largest market for battery storage development globally, with a target to install 30 GW of projects by 2030. Granular pricing policies and simplified permitting processes as key drivers of investor interest. Meanwhile, Italy has recently emerged as an attractive market for battery deployment, driven by a doubling of renewable installations to 6 GW in 2023, and TSO Terna's target to install 9 GW of capacity by 2030
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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