What’s Shaping the Future of the Renewable Energy Sector?
Pearse Professionals is proud to be partnering with a number of senior female advisors/NEDs within the infrastructure industry, one of whom is Anna Halpern-Lande, Founder and Co-CEO of Ortus Climate Mitigation.
At this year’s Solar Finance and Investment Summit, Anna provided insights into the evolving renewable energy sector. As Chair of the summit, she captured the essence of the industry’s transformation, highlighting how the market has matured beyond the hype phase and is now ready for its next stage of development and investment.
Discussions at the conference spoke on the importance of bankable, scalable, and strategically positioned projects – initiatives that deliver sustainable value while navigating increasing complexity and risk.
We are pleased to share six key takeaways that Anna has expertly highlighted that will define the next phase of renewable energy development and energy investment.
Fundamentals are shifting
The renewable energy sector has matured, but the financial fundamentals have changed dramatically. Revenue pressure, rising financing costs, capital scarcity, and increasingly selective institutional investors are redefining what it takes to succeed.
Revenue Pressure
Developers are facing price compression and shifting PPA structures, making long-term revenue security more difficult. The lower capture prices reflect the tension between supply and demand profiles, exacerbated by the rapid buildout of intermittent generation without corresponding storage solutions.
Rising Financial Costs
At the same time, higher interest rates have fundamentally altered the cost of capital. The era of cheap debt is over, and the cost of project financing is substantially higher than in previous years. Institutional investors are more selective than ever, prioritising projects with strong fundamentals, proven execution teams, and de-risked revenue models.
Capital Scarcity
Capital scarcity is now a defining constraint. While there is still significant capital allocated for renewables, it is no longer flowing freely across all projects and platforms. Investors are now demanding higher returns, more disciplined financial structuring, and clearer exit pathways. As a result, many developers are struggling to raise the equity needed to reach financial close, forcing them to reassess project feasibility and capital allocation strategies.
For developers, this means that traditional models no longer work. Projects will need to adjust financing strategies, explore alternative capital sources, and rethink operational structures. Multi technology projects, such as solar-plus-storage or hybrid renewable portfolios, are increasingly attractive as they better align power production with demand profiles and reduce reliance on volatile merchant pricing.
Success in this market will belong to those who can optimise financing, structure projects for resilience, and secure revenue streams that reflect today’s economic reality - not yesterday’s assumptions.
2. Consolidation is accelerating – but niche players can still win
We’ve seen a wave of market consolidation, with larger players expanding aggressively and U.S. investors showing increased interest in Europe, possibly influenced by shifting political leadership.
However the consolidation isn’t over. We expect market consolidation in 2025 to continue as sellers moderate their expectations and align more closely on pricing, allowing more transactions to move forward. We also expect that, with investors having been disappointed, deals that are more hope than substance will not move forward, and not every project or platform will find a home.
In this increasingly concentrated market, the big question is: what role is left for smaller developers?
Specialisation, local expertise, and targeted market plays are the best path forward for those who aren’t giants.
The big players will dominate scale driven projects, but smaller, highly strategic developers who understand local regulations, grid constraints, and specific buyer needs will still carve out space.
3. Demand is surging, but PPA stagnation poses a risk
The demand for electricity is skyrocketing, especially in the Nordics, where it may double. What took a century to build must now be replicated in a decade, driven by data centres and heavy industry decarbonisation.
Yet, the PPA market isn’t keeping pace. The traditional 15-year PPA is now rare, and the market is shifting toward shorter, more flexible contracts with higher price risk. AI and automation could help balance loads and optimise market dynamics, but for now, the mismatch between demand and financing mechanisms remains a critical challenge.
While long-term contracts have become harder to secure, those who can navigate price volatility effectively will find opportunities where others see risk.
4. Quality over quantity: The old competitive advantage is the new competitive advantage
In a capital-constrained environment, quality is the defining factor.
Not all megawatts are created equal. The viability of a project varies significantly by region, with some markets offering strong fundamentals and others suffering from regulatory hurdles, grid congestion, or weak offtake structures. Developers must be rigorous in due diligence, thoughtful in partner selection, and aggressive in securing premium locations.
Investors are looking for proof of capability, not just the ability to develop projects but to deliver them to COD, operate them effectively, and generate EBITDA. The days of securing funding based on ambition alone are gone; now, execution and track record define success.
5. Policy, regulatory uncertainty, and grid constraints continue to define the landscape
Regulatory uncertainty remains a significant challenge, but policy shifts are only one piece of the puzzle. Countries seeking to attract growth will have to carefully balance policy changes with providing policy certainty to investors, particularly foreign ones.
Developers need to think beyond subsidies and incentives, focusing on;
Grid access
Infrastructure readiness
Financing mechanisms and
Stakeholder engagement
“The best developers will be those who can navigate both the regulatory and grid landscapes, ensuring projects are bankable, deliverable, and ultimately successful.”
6. The market is more than policy – it’s about execution
Execution will separate winners from losers. Those who navigate grid constraints, secure bankable offtakers, and build with foresight will lead. Those who assume policy alone will drive returns will be left behind.
Community pushback is rising across Europe, especially in the UK. Winning local support is now as critical as securing financing. The best developers will be those who can navigate both the regulatory and grid landscapes, ensuring projects are bankable, deliverable, and ultimately successful.
The fundamentals remain strong, but success will belong to those who can balance risk, manage volatility, and forge strong partnerships while staying ahead of regulatory and market shifts.
The Industry has changed - have you?
The hype is over. The renewable energy industry has moved from excitement to execution.
The next few years will be a test of who can truly operate at scale, manage risk, and deliver real value. The market fundamentals remain strong, but success will belong to those who understand the shifts, embrace flexibility, and execute with precision.
As a recruitment agency specialising within the renewable energy sector, we understand the important role that talent plays in driving this transformation. The sophistication of the renewable energy market demands professionals who can adapt to shifting market demands, tackle financial and regulatory challenges, and ensure long-term success.
Our team is always ready to provide advice on the market and inform you about upcoming opportunities. Please don’t hesitate to reach out if we can assist you further.
If you would like to discuss any of the content in more detail and discover more about renewable energy, please reach out to Joe Rudkin, Head of Pearse Professionals, and we would be happy to connect you with Anna.