The EU’s Green Deal will be supported by the European energy industry with at minimum 650 billion euros for renewable energies until 2030. According to the management consultancy Kearney for the German finance magazine Handelsblatt, this sum could even rise to over one trillion euros if the conditions for funding are favorable. For example, the Spanish energy group Iberdrola plans to invest 34 billion and the Italian Enel group even 70 billion euros in renewable energies.

Oil giants are joining in as well and are going to invest several billion euros in the green energy market. Shell, BP, Total, Eni and Equinor alone are going to invest around 130 billion euros over the next five to ten years. In doing so, they are responding to pressure from society, politicians and investors to act more sustainable in the future.

Between 2010 and 2020, the share of renewable energies has already risen from 20 to around 40 percent. However, new investments have stagnated in recent years. The currently emerging investment boom may have several reasons. Political support is increasing (such as through the Green Deal). Above this the demand for hydrogen generated through green electricity is growing ongoing. Furthermore, technological developments are making wind turbines and solar power increasingly competitive, whereas fossil fuels are becoming less popular. Finally, the financial sector is also making renewable energy more attractive through low interest rates and investments.

The sums that will be invested in the years ahead in will mainly depend on the declining costs of generating green energy and on government-funded subsidies. However, for at least five more years the conditions are considered rather good and 650 billion euros from the traditional energy sector are considered quite conservative. Moreover, renewable energy stocks proved to be resilient during the Corona year 2020. They not only remained stable but are steadily growing in value. Not only private customers, but also large companies such as Amazon are increasingly demanding green power, thus promoting its further development and spread.