The South Europe renewable energy market is expected to grow at a CAGR of more than 6% over the period of 2020-2025. Factors such as an increase in environmental awareness and regulations and decreasing cost per kilowatt of electricity generated from renewables are expected to provide a boost to the market. However, the high price of the storage of renewable energy is expected to restrain the market.

  • Wind Energy segment is expected to dominate the market as wind farms have been built across South Europe. Large coastal borders with the Mediterranean Sea in southern Europe with the peninsular regions like Italy and Iberia also provide for fertile ground for investments in offshore wind projects.
  • New technologies and materials like the latest research going on the perovskites are expected to increase the efficiency of the solar cells, which is likely to act as an opportunity for the market players.
  • Italy is expected to have the largest share of renewable energy among the nations in the forecast period due to its significant consumption of electricity and government focus to decrease dependence on imported fossil fuel. The country is also expected to invest in the research and development of renewable energy, which is likely to aid in the growth of the market.



Key Market Trends


Wind Energy to Dominate the Market

  • Wind power segment includes the different onshore wind farms and offshore wind farms that can be used to provide renewable energy. Wind energy is the most used renewable energy in South Europe.
  • Wind energy constitutes almost 33.82% of the total renewable energy generated in the region, with nearly 43095 MW of power being produced, in 2019. It is expected that the sector may increase further in the forecast period due to new projects entering the market.
  • Spain has been a large user of wind power in the world, with a 25553 MW value in 2019, which increased from 23405 MW in 2018. Nearly half of the renewable energy is derived from wind energy in the country. Wind energy is expected to remain among the most significant segments of electricity generation from renewable energy in the country.
  • In 2019, the European Investment Bank (EIB) financed a wind energy project with 45 million euros to build three wind farms in Portugal that has a total capacity of 96 megawatts (MW). The coastline with the Atlantic Ocean provides for ample improvement in the wind energy of the country.
  • Therefore, wind energy is expected to continue to dominate the market due to its large size relative to other renewable energy and continuation of maintenance and increase in investments.



Italy to Dominate the Market

  • Most of the European countries in the south are already developed and grown in the areas of renewable energy. Therefore, it is expected to be less than the developing nations because electricity demand has mostly already been met.
  • In 2019, the largest amount of the renewable energy in the country is produced by hydropower projects including pumped storage. In 2019, 22900 MW of power in the country was produced through these projects. However, little new investments is taking place in the hydropower sector of the country.
  • In 2020, Enel Green Power was awarded 68 MW of new renewable capacity for two wind projects and 38.3 MW of capacity for repowering of already-operational hydro plants in the second renewable auction launched by the Italian state-owned energy service company GSE (Gestore Servizi Energetici). The projects are expected to be constructed in the south of the country, and construction is scheduled to begin in 2021.
  • The primary energy consumption in the country has decreased slightly to 154.5 million tonnes of oil equivalent, in 2018 from 156.3 million tonnes of oil equivalent, in 2017. The decline is due to the low rate of economic growth of the country. A decrease in consumption may lead to the impeding of the growth of the market.
  • Hence, Italy is expected to dominate the market due to its large size and increase in the installed capacity of renewable energy in the forecast period.



Competitive Landscape


South Europe renewable energy market is partially fragmented. Some of the key players in this market are Enel Green Power S.p.A., ContourGlobal PLC, Acciona SA, Abengoa SA, Energias de Portugal SA.

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