We are seeing an impressive power build-up of renewables across Europe, with the biggest opportunity today in some of the southern countries of the EU such as Spain and Italy. These countries have dramatically reduced the bureaucracy that is required to build out renewable energy assets and look even better positioned to build further post Covid-19 than they were before the pandemic.
More broadly speaking, the falling cost of renewables has removed once prohibitive costs from the equation. Also, with governments highly incentivised to get people back to work after the pandemic, the renewable energy sector is enjoying significant tailwinds right now.
Jim Lydotes, senior portfolio manager, Mellon.