It is impossible to create a net-zero world by 2050 without a tremendous growth in the capacity of renewable energy. According to a recent research report by Barclays, in Europe alone up to 114GW of new renewable energy capacity will be required each year to reach the 2050 targets. This is nearly five times the current annual deployment of 25GW. To meet the interim 2030 targets in Europe will require additional offshore wind capacity of 180GW. I should also note that these targets have been continually increasing as reality bites on the needed urgency to increase renewable energy capacity.

Meeting these targets will require an enormous capital investment, estimated by Barclays at €1.5 trillion in Europe between now and 2050. Where will this money come from? A significant part of it will have to come from large European utility companies, many of which already own sizeable portfolios of renewable energy assets alongside their legacy businesses in areas such as non-renewable power generation or energy distribution.

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