By Ilias Vougioukas, Investment Associate, aream Group

As renewable energy markets in central and southern Europe become more saturated, pushing prices higher, some investors are looking to diversify their portfolios in Eastern and South-Eastern Europe. Combined with many hours of sunshine, strong wind yields and government support, investors should keep an eye on market developments.

Example Greece: Here, not only was the decision made to phase out coal, but an accelerated development process for solar plants was also introduced. Nevertheless, investors were repeatedly affected by retroactive government cuts in the past, which weakened confidence in the market. Currently, however, there is an improvement in sight due to some movements: many large and well-known players, such as Juwi, ABO Wind, Masdar and Lightsource BP, are currently developing and selling projects in Greece. In 2020, project developers had requested a total of 45.5 GW of capacity¹, even if probably only a small part will be implemented in the end due to many different reasons. However, the fact that renewable energy project development in Greece is moving in the right direction is also shown by the contract already signed with Volkswagen for the implementation of smart e-mobility systems and sustainable infrastructure on the island of Astypalaia. 

Example Balkans: The European Bank for Reconstruction and Development, or EBRD, has committed to support green energy projects in the region. According to Matteo Colangeli, EBRD Director for the Western Balkans and Serbia, auctions are to play a central role² in this, which the EBRD intends to support financially and strategically.

Interesting news also from the rest of the Balkans:

• In Serbia, the Israeli investment company Enlight is investing.
• In Albania, large solar projects have been approved. 
• In northern Macedonia, the German company WPD AG has committed to building a wind farm worth 500 million euros.
• In Romania, an auction process is being introduced.

For investors with a diversified portfolio of renewable energy assets and a higher risk-return appetite, the market in Western and Southern Europe offers a good opportunity to expand geographically. Go East!

References

1) https://balkangreenenergynews.com/greece-is-2020-renewables-champion-in-balkans-with-45-5-gw-in-pipeline/
2) https://balkangreenenergynews.com/ebrd-promotes-auctions-as-number-one-tool-for-renewable-energy-growth/