Energy Transition Update

Global energy provisions will soon be diversified to include large supplies of renewable fuels. Solar, hydrogen, biofuels, synthetic gasses, hydro and wind power will replace fossil fuels in domestic and global energy inventories. 

ThisWeekinFM Guest Editor, Daniel Lynn, has picked a number of examples that demonstrate an international energy transition across separate regions of the globe. 

UK 

UK decarbonisation maintains a steady pace despite political, public and media opposition. However, there remains much work to be completed such as construction of new clean energy installations, electrical grid upgrades as well as attracting huge financial investment. 

A collaborative report released by Santander and Standard Life has outlined the huge amounts of finances that are required for carbon neutrality to be achieved. The report states that at least £511 billion will be needed by the year 2040, or roughly £40 billion annually.    

UK renewable investors and operator, Low Carbon - aim to construct a 500MW solar and BESS (Battery Energy Storage System) in West Oxfordshire. As capacity exceeds 100MW approval will have to be decided by the energy secretary and the Planning Inspectorate. If approved construction could begin in the early 2030s and once operational can provide clean power to roughly 145,000 homes.   

Danish fund manager CIP (Copenhagen Infrastructure Partners) has decided to invest in a 350MW battery energy storage system in Kilmarnock, South Ayrshire - Scotland. CIP has committed £232 million towards the project. 

Publicly owned clean energy entity, Great British Energy – has begun to filter investment towards community owned energy projects. Over 1,000 local renewable ventures will be supported with £30 million of funds. This first injection of finance will be a part of up to £1 billion in total financial releases. 

EUROPE 

The EU block retains a strong position in relation to lowering emissions, commitment remains strong and is supported through the release of various statistics. For example, Russian gas dependency is now at 12% compared to 45% four years ago. By 2027 the EU aims to reduce that number to zero. 

In 2025 Coal power generation was recorded at 9.2%, down from 24.6% a decade earlier. Fossil fuel subsidies dropped to €97 billion in 2024, down 20% from 2023 and 42% from 2022. EU electricity is now generated mainly by renewables, around 70% is produced via clean sources. 

Portuguese renewable company, Greenvolt Group – has secured €284 million in project financing for the 253.1MW Gurbănești wind farm located east of Bucharest, Romania. Operations are aimed to begin sometime in 2027. 

Norwegian oil fund managers, Norges Bank Investment Management - has provided €1.2 billion to Copenhagen Investment Partners sixth renewable energy fund. The finances will be utilised to invest in renewable energy generation and storage projects across the North American, Western European and Asia Pacific markets. 

American Investment management company, Blackstone – has invested up to €2 billion ($2.3 billion) towards Eurowind, a Danish renewable development company. Finances will support Eurowind’s ambition to become Europe’s preeminent independent power producer. 

ASIA PACIFIC 

This region is regarded as a difficult area to decarbonise due to a large share of fossil fuel dependency, industrial practises and high energy demand fuelled by large populations and rapid urbanisation. Economic factors are also an issue for some countries within the region that do not share advantageous financial positions that others do. For example, economies such as Japan, Australia and Soth Korea will be able to attract investment, whilst other countries such as Loas or Cambodia will struggle.    

ACEN Corporation, the energy wing of Philippine conglomerate, Ayala Group - has accessed a €50 million loan facility to support the expansion of their renewable energy portfolio.  

EDF Power Solutions Australia, a subsidiary of EDF (Electricite de France) – is aiming to secure environmental approval for the construction of a wind and battery storage project in the New England Energy Zone, located in New South Wales - Australia. The 200MW Balala wind farm and BESS installation could supply 150,000 homes with clean fuel annually.   

South Korea's government has outlined its Korea-Green Transformation Strategy. This 10-year plan will focus on introducing carbon neutrality alongside sustainable economic growth. The South Korean government will provide KRW 1 trillion (€665 billion) of funds to support this ambition.  

USA 

Like the UK, there is a strong element of opposition to American NetZero aims inside media, public and political arenas. Fossil fuels are still prevalent accounting for 82% of total US energy consumption, although electrical generation via fossil fuels has dropped below 50%. However, conditions for emission reductions have been weakened. The US Environmental Protection Agency has removed carbon limits on gas and coal power plants. Despite a stalling of progress there are still many opportunities for large renewable investments inside the USA.       

American independent power producer, Pivot Energy - has agreed to accept a $173 million loan facility that will fund 51 community-scale solar projects. 

Spanish renewable outfit, Zelestra - has accepted $350 million in financing for a 203MW solar installation located in Indiana. This deal means that Zelestra has gone beyond $1 billion of investments in 2026 alone.  

US clean power developer, Clearway Energy Group - has closed financing for the 650MW Swan Energy Centre project in Missouri. Construction can now begin on the $1.5 billion solar facility. Once construction is complete around 200,000 homes can access green energy annually. Commercial operations are scheduled to commence in 2028.