Affordable and renewable clean energy sector:
Policy and Regulatory Developments
- 03/02/25 European Union’s Affordable Energy Action Plan: On February 26, 2025, the European Commission unveiled the Affordable Energy Action Plan aimed at reducing electricity bills, promoting clean energy sources, and diversifying energy suppliers. Key elements include introducing new power tariffs to access cheaper electricity, encouraging member states to lower energy taxes, and decoupling retail power prices from volatile natural gas prices. The plan also seeks to accelerate permitting processes for renewable projects and proposes a Grid Package in 2026.
Industry Challenges
- 03/02/25 Impact of U.S. Offshore Wind Permit Suspensions: Recent directives from former President Donald Trump have suspended offshore wind development permits, critically affecting the U.S. offshore wind industry. This decision has led to significant delays for projects totaling over 60 gigawatts, prompting concerns about hindering the nation’s power supply and decarbonization efforts. Notable developers have responded by halting or reducing their investments in the American market.
- 03/02/25 BP’s Shift in Renewable Energy Investments: BP is under pressure from Elliott Management to abandon its renewable energy projects. The company plans to reduce its renewable energy investments by over $5 billion annually while increasing oil and gas investments to $10 billion. Elliott argues that BP lacks the scale and expertise for cost-effective operations in sectors like solar and wind, suggesting a complete exit from these areas.
Technological Innovations
- 03/02/25 Advancements in Geothermal Energy: Geothermal energy, derived from the Earth’s internal heat, is gaining attention as a sustainable and near-limitless power source. Projects like the Frontier Observatory for Research in Geothermal Energy (FORGE) in Utah aim to advance geothermal technology by creating underground reservoirs that can be drilled almost anywhere. Despite engineering challenges, innovations inspired by fracking and new drilling methods show promise for the future of geothermal energy.
Consumer Trends
- 03/02/25 Adoption of Home Battery Systems in Australia: Australian households are increasingly adopting solar power and private battery storage as part of the drive toward net-zero emissions. With over 40% of homes utilizing solar power, the focus is now on home battery systems. More than 30,000 battery units were sold in the first half of last year, and it is expected that home batteries will significantly contribute to the renewable energy mix. However, the upfront cost, which can be up to $15,000, poses a barrier, leading to calls for a national Home Battery Saver Program to provide rebates.