In this two-part report our Global Energy Perspectives team summarise developments in the energy transition over the past couple of years and look forward to the implications forinvestors.
In part one of this report we focus on the reasons to be positive:
Accelerated electrification in Europe
Energy security concerns will drive an accelerated transition in Europe. Decarbonisation through electrification is the preferred route to ensure energy security, not least because it aligns with climate goals. This will necessitate the mass rollout of electric heat pumps and EVs, requiring accelerated renewable energy deployment.
Positive renewable economics with high commodity price
Elevated commodity prices are expected to create a prolonged period of high power prices. This will both increase the attractiveness of renewables relative to fossil fuels and also increase profitability for power generators and developers.
Accelerated renewable rollout
An accelerated renewable deployment is expected to be pursued to reduce the role of gas in the energy mix and secure energy independence. This will put pressure on existing renewable pipelines.
Acceleration of alternative gases
The acceleration of renewable deployment will increase the challenge posed by renewable intermittency. Alternative sources of power flexibility include biofuels, synthetic fuels and hydrogen and its derivative products will become more prominent as natural gas is removed from the mix.
Read our full report below for a more detailed analysis.
The future of European CfDs
Contracts for Difference have been successful at increasing competition, accelerating capability buildout and stabilising prices in many European states.Read more
Asian LNG markets: evolution and growth in response to the war in Ukraine
The rapid reduction in Russian gas exports to Europe has resulted in an unprecedented reshuffling of LNG trade dynamics.Read more
Commercial fleet electrification – adoption is accelerating, but barriers remain
With 50% of new car registrations in the UK being registered by businesses, it’s vital for companies to start electrifying their fleets.Read more
2040 Global Gas Market Outlook
Opportunities for investors to contribute to the energy transition.Read more