Expert opinion – Financing of renewable energy infrastructure benefits from the sector’s momentum

By Philippe Garrel, Head of Energy Transition Funds at Sienna Private Credit

Since its creation, Sienna Private Credit has participated in the financing of 2 GW of projects (with 80% of projects located in Europe outside of France in 2022). At the end of this year, Sienna Private Credit will be involved in financing several projects, including photovoltaic projects in Italy, Spain, and France, as well as a battery storage project.

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  • EU targets (REPowerEU Plan) have been revised upwards, with renewable energies set to cover 42.5% of energy consumption by 2030.
  • This upward revision is all the more necessary as the electrification of uses increases (electric mobility, decarbonization of industry, etc.): electricity consumption is expected to grow by 30% between now and 2035.
  • Renewable energies are even more competitive with rising energy and carbon prices.
  • Despite rising rates and raw material costs, the momentum of renewable energies is very positive: 40 GW of photovoltaics were installed in Europe by 2022, corresponding to the capacity needed to meet the objectives of the REPowerEU Plan. However, wind power is significantly below the necessary trajectory.