Energy Transition Update

ThisWeekinFM Guest Editor, Daniel Lynn, has located various news items from across the globe that demonstrate investment and construction of clean energy installations.

However, recent military intervention in Iran has again highlighted the fragile economic and geopolitical foundations that the international fossil fuel market is based upon. Soon energy costs are expected to rise in a similar manner to when Russia invaded Ukraine. Fossil fuels have now been weaponised twice in four years due to military conflict.

Despite this recent and repeated development, work continues in the attempt to provide clean power to households and commercial premises across the world. Following are some pertinent examples that show commitment towards an international energy transition.

UK

UK renewable company -Boom Power, has been granted a development consent order for the 238MW Fenwick solar farm in Yorkshire.

Irish renewable developer Galetech Group will invest £3 million over 5 years to further expand renewable projects across the UK. 

A report commissioned by RenewablesUK has stated the belief that energy security should viewed in line with national security measures. The report also suggests that deployment of renewables should be widened as fossil fuel costs are subject to geopolitical influence.  

Europe

Multinational Spanish energy company, Iberdrola - placed €600 million of green hybrid bonds to refinance a hybrid instrument that matures at the end of April this year.

Multinational Spanish energy company - Repsol, will invest between €500 million and €1 billion in its low carbon strategy from 2026 to 2028. Repsol will target the wind and solar markets with their investment plan.  

UK fuels company BP and multinational Spanish energy company Iberdrola are collaborating to construct a 25MW green hydrogen facility in Castellon, Spain. Once finished the Castellon Green Hydrogen S.L will be the largest green hydrogen plant in operation throughout Spain. Construction is said to be 90% complete whilst the project represents €70 million in shared investment.

Asia Pacific

Australian renewable fund manager Octopus Australia has begun construction on the $540 Blind Creek solar and battery storage project in Bungendore, New South Wales. The solar installation will be capable of operating at 300MW capacity whilst the battery storage will maintain 243MW of operational capacity.

Danish wind turbine manufacturer, Vestas - has signed an MOU (Memorandum of Understanding) with Japan’s Ministry of Economy, Trade and Industry (METI) to bring forward the idea of a wind turbine manufacturing base in Japan.

Australia is aiming to create the conditions that could see $181 billion of investment being attracted towards clean industrial energy. A report released by Mission Possible Partnership and the Industrial Accelerator has identified a number of projects that could include measures such as mandates, public procurement and revenue certainty mechanisms that maintain vast investment potential.  

USA

2025 saw the USA install 43GW of new solar capacity, making solar the largest contributor to US energy supplies for the fifth consecutive year. The Solar Energy Industries Association and Wood Mackenzie said solar and energy storage accounted for 79% of all new installed capacity.

Spanish renewable outfit, Zelestra - has started construction on two solar projects in Texas. Construction at both sites started in January this year and will be completed by the end of 2027. 

Non-profit American organization Oceantic Network has released a study in conjunction with Lumen Energy & Environment, stating that US offshore wind development could produce $42 billion of demand for domestic steel over the next 20 years. Offshore wind is an area that the current American administration is keen to nullify in favour of fossil fuels. President Trump has attempted to halt construction work being completed on 5 major new offshore wind projects.