According to a survey by the Hamburg-based market research institute Appino, 25 percent of German homeowners want to invest in a solar PV system this year. The order books of the manufacturers of these systems are full and are likely to be even fuller in the coming months. Renewable energy companies have been getting wind in their sails for several quarters. Global energy demand is increasing and is expected to continue to grow. Not only through the expansion of electromobility. Automakers around the world will convert their vehicle fleets from combustion engines to electric motors in the coming years. Large parts of Europe are extremely dependent on imported fossil fuels such as gas and oil. Germany acquires about 70 percent. energy sources from abroad.
Federal Economy Minister Robert Habeck now wants to change the financing programs. Target: By 2030, around 80 percent of Germany’s electricity should come from renewable sources. By 2035 it should be almost 100%. Companies in the renewable energy sector can benefit from this.
According to Statista, at the end of 2021, the installed capacity of photovoltaic systems in Germany was almost 59 GWp. Habeck’s “Easter Package 2022” predicts that by 2030 the production of solar systems in Germany should increase to 215 GWp. As part of the “2022 Easter Package”, the climate fund has been increased to EUR 60 billion. Habeck takes a multi-pronged approach to financing. In existing buildings, incl. the replacement of windows and heating is to be further promoted. For new buildings and renovations, from 2024, any newly installed or replaced heating system should be powered by at least 65 percent renewable energy. In addition, more open spaces and roofs for solar PV systems are to be made available through a tender.
A breath of fresh air at sea
Last year, not a single new wind turbine was installed off the coast of Germany. In addition, due to the weak wind year in 2021, offshore farms only supplied 24 TWh (terawatt hours) of electricity, according to transmission system operator Tennent. 3 TWh less than the year before. Habeck wants to end this silence. By 2035, the current production of 7.8 GW (gigawatts) is expected to increase fivefold to 40 GW. To this end, the relevant planning and approval procedures need to be improved. The installation of land systems should also be picked up at the rear, because here too there are ambitious goals. Details in Habeck’s “summer package”.
In addition to solar and wind power, politicians are largely focusing on hydrogen. The previous government has already provided billions of funds for the development and expansion of hydrogen technology. Habeck also goes on gas here and has concluded a cooperation agreement with the United Arab Emirates. The first is blue hydrogen. The long-term plan is to move to green hydrogen. Energy-intensive areas, such as the chemical and steel sectors, increasingly rely on green hydrogen as an energy source for the production of their products. Many truck manufacturers are currently developing hydrogen powered vehicles. Airbus plans its first hydrogen-powered aircraft in 2035. Many projects are also under development in bus, rail and ship transport.
However, the green wave has long reached not only Germany. The US and EU have also launched billions of funding and investment programs to develop renewable energy sources. Goal: meet the global warming goals set out in the 2015 Paris Climate Agreement. Accordingly, global warming should be limited to well below 2 degrees compared to pre-industrial values.
To achieve this goal, more investment in the development of renewable energy needs to be made worldwide. According to Statista, investment in renewables is likely to increase to around $ 430 billion by 2030. In 2019, it was approximately $ 302 billion. The stocks of solar and wind power plant producers should in fact significantly increase these prospects. However, the opposite is true. Shares of wind turbine producers such as Nordex, Siemens Gamesa and Vestas are traded in the area of their long-term lows. Solar energy stocks like Canadian Solar and Sunpower and hydrogen specialists like Nel have fared better recently. Nevertheless, they are still trading well below their all-time record. Many firms are currently struggling with rising commodity costs and rising bond yields.
Many companies are still cautious about the current fiscal year. However, according to Thomson Reuters, most analysts are confident in the sector in the medium term. The UC ESG Renewable Energies Index tracks up to 30 companies from Western Europe, Japan or the US that belong to the “Renewable Energy” industrial sector or the “Renewable Energy Generation” industrial sub-sector according to a sector classification scheme. This allows investors to diversify widely in the field of solar energy,
Hydrogen and wind turbine producers are investing.
To be included in the Global Renewable Energies Index UC ESG, companies must also meet the ESG sustainability criteria. ESG stands for Environment, Social and Governance. The check is based on data from the ESG ISS ESG service provider. ISS ESG is the responsible investment arm of Institutional Shareholder Services Inc., a sustainability assessment agency and a leading provider of environmental, social and management solutions.
Only companies with a market capitalization of EUR 1 billion on the day of selection and with an average trading volume of EUR 10 million over the last 20 trading days are taken into account. Solar system manufacturers Enphase Energy, Meyer Burger Technology, Sunpower, wind turbine manufacturers Nordex and Ørsted, as well as hydrogen and fuel cell specialists Ballard Power and Nel are now included in the index. The composition of the index is revised every six months and equally weighted. The net distributions of equities included in the index are reinvested. The index fee is 1.5 percent per year. The index sponsor and calculation agent is UniCredit Bank AG. More information at www.onemarkets.de
|HVB Open End Index certificate|
|Essential||UC ESG Global Renewable Energy Index|
|ISIN / WKN||DE000HB6 NEW5 / HB6 NEW *|
|Duration||open end *|
|Annual management fee||1.50% per annum|
|Ask the price (sale price)||99.31 EUR|
* The issuer, UniCredit Bank AG, is entitled to terminate the certificate as usual and repay it in the appropriate redemption amount.
The current product details are published on the website www.onemarkets.de. The product is a bond issued by UniCredit Bank AG. In the event of their insolvency, i.e. default or over-indebtedness, there is a risk of high losses, up to and including total loss. Information on the operation of the product
Status: May 23, 2022
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This information does not constitute investment advice, but an advertisement. The public offering is made solely on the basis of a securities prospectus approved by the Federal Financial Supervisory Authority (“BaFin”). The approval of the prospectus should not be interpreted as a recommendation to buy these securities from UniCredit Bank AG. The prospectus containing all supplements and final terms are authoritative only. It is recommended that you read these documents carefully before making any investment decision in order to fully understand the potential risks and opportunities involved in making an investment decision. You are about to buy a product that is not simple and may be difficult to understand.
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Contribution Renewable energy – Energy transformation is inevitable! it first appeared on the onemarkets blog (HypoVereinsbank – UniCredit Bank AG).
Author: Richard Pathenhauer