Subscribe to Newsletter
  • ACQUIRE

logo

  • Energy
  • Construction
  • Resources
  • Trending
  • Business Insight
  • Events
  • Magazine
  • Advertise
  • Contact
Home
  • Home
  • Energy
  • Construction
  • Resources
  • Trending
  • Business Insight
  • Events
  • Magazine
  • Advertise
  • Contact

European oil companies are leading the way in renewable strategies

04 Dec, 2020



European international oil companies (IOCs) are leading the way in terms of progressing strategies for renewable power growth, ahead of US players that have not, so far, made the same switch, says GlobalData.

According to GlobalData’s latest analysis, the top six European firms have over 28 gigawatts (GW) of renewables capacity in the pipeline, with BP, Total and Equinor making up over 70 per cent of this. However, the scale of these companies’ developments still lags behind major power sector incumbents.

Managing Oil and Gas Analyst at GlobalData, Will Scargill, commented: “IOCs’ current development portfolios are still significantly smaller in scale than those of incumbents in the power sector. However, long-term targets suggest an ambition to make up this ground – with BP’s 2030 target of 50GW significantly exceeding Orsted’s target of 30GW.”

“The rapid build-out of European IOCs’ renewable portfolios is encouraging as they look to position themselves for the energy transition,” Mr Scargill said.

“However, lofty ambitions do come with significant risk – particularly as they will still look to their oil and gas businesses to be the major cash generators through the medium term. A weak oil and gas market could leave companies unable to fully fund their renewables growth plans, leaving them with a diminished position in the overall energy market,” he added.

Capacity of upcoming renewables projects for major European IOCs and power producers. Image source: GlobalData Power Intelligence Center.

Oil and gas companies looking to transition into the renewables are making significant moves in the mergers and acquisitions (M&A) space to support their growth ambitions.

Recent months have seen Total announce a flurry of deals in the wind and solar sectors, while BP announced its entry into offshore wind with a $1.1 billion deal to partner with Equinor in US developments.

Mr Scargill said solar PV and offshore wind developments account for most of IOCs’ renewables development pipelines.

“Solar has the benefit of low costs and a short investment cycle, supporting rapid capacity build-out, while offshore wind is expected to see the fastest growth within renewables over the next decade and has the benefit of exploiting oil companies’ experience in offshore development,” he noted.

Related Articles

WOMEN IN ENERGY 2025

Women in Energy & Renewables Summit 2025

Asia-Pacific Hydrogen Summit & Exhibition 2025

Enlit Asia 2025

International Energy Week (IEW) 2025

Comments

Leave a comment Cancel reply

You must be logged in to post a comment.

Breaking

  • Energy
  • Construction
  • Resources
19 Jun

TotalEnergies acquires major UK renewable portfolio

17 Jun

Renewables surge, with solar and wind dominating

17 Jun

UNSW engineers accelerate green tech commercialisation

09 Jun

AEMO’s distribution focus enables community participation

06 Jun

Report shows 20 million gained energy access in 2024

18 Jun

McNab wins Queensland Sustainability Award 2025

18 Jun

Investa signs six-year renewable energy agreement

12 Jun

Cumberland celebrates planting its 1,000th tree

10 Jun

Stantec helps New Epping achieve sustainability excellence

09 Jun

RMIT engineers transform low-grade clay into cement

09 Jun

Australia’s hydrogen certification framework faces scrutiny

09 Jun

Biofuel demand outpaces supply, risking shortages

28 May

Major contract awarded for methanol facility in UAE

27 May

Archaeologist accuses WA government of North West Shelf cover-up

13 May

Queensland resources sector drives energy transition

  • BATTERY ASSET MANAGEMENT SUMMIT

Online Magazine

    Current Cover
  • Login
  • Subscribe

Subscribe

Subscribe to Newsletter

Our Titles

  • Share on Newsletter
  • Share on LinkedIn
  • Share on Twitter
  • Share on Facebook
  • Home
  • Contact Us
  • Terms and Conditions
  • Privacy
© Sage Media Group 2025 All Rights Reserved.
×
Authorization
  • Registration
 This feature has been disabled
 This feature has been disabled until further notice, however you may still register
×
Registration
  • Autorization
Register
* All fields required