Alternative energy is on the radar

Thanks to the REPowerEU plan, Europe is taking steps to become less dependent on Russian gas. Past initiatives such as the European Green Deal, the Paris Agreement, infrastructure plans in the US and the drive towards a climate-neutral economy (by 2050 for Japan and the UK and by 2060 for China) are all hot topics once again.

Our current energy system consists of a number of centrally located sites where electricity is continuously generated from fossil fuels, but this is now changing. Electricity is increasingly being generated locally from renewable energy sources, and this production is less reliable.

A major challenge going forward will be ensuring that this local, variable electricity production keeps up with increasing electricity consumption. Industrial energy storage solutions are a necessary part of an effective and sustainable electricity network.

As for solar energy, demand for installations will be robust while solar panels become cheaper and more efficient. Proper storage capacity will be increasingly necessary in order to cover peak times when there is little sunlight
As regards wind energy, the REPowerEU programme will improve access to permits for on and offshore wind farms in Europe.

As far as regulated utilities are concerned, much investment is needed in network infrastructure and smarter networks. In addition, storage capacity must be adjusted to take account of irregular energy production.
Following the correction in 2021, the alternative energy sector is no longer expensive, with the outlook for company earnings making it attractive.