European power & renewables: 5 things to look for in 2022

Record prices in Europe’s power markets set the background for 2022. But this isn’t just a story of high gas and carbon costs; power markets are materially tighter than they were pre-pandemic. While high wholesale prices are a bonus for some, they are undeniably a double-edged sword, with potential political, commercial and economic implications. Wind and solar markets are facing the challenge of accelerated decarbonisation and new policies must be backed by appropriate market frameworks. The year offers an impressive line-up of auctions for new build, with some notable highlights – such as the fourth allocation round for UK CfDs, which we expect to secure 7 GW of offshore wind. The year-ahead synopsis for wind and solar additions is strong. After some testing market conditions for storage, there are reasons for optimism. New doors to opportunity are opening. And finally, the EU has new taxonomy rules – how green is your investment?