European independent power producers (IPPs) are increasingly focusing on narrower, deeper portfolios, concentrating their efforts on fewer markets but with greater depth in each. This shift, observed at the recent Solar & Storage Finance & Investment Europe conference, reflects a changing market environment and a focus on maximizing returns.
Adrien Pinsard, founder and CEO of Telis Energy Group, emphasized the importance of building strong local teams with experienced leadership. He highlighted the company's strategy of focusing on fewer markets, including Germany, France, Italy, and the UK, while maximizing the potential of its existing assets. Nikolaj Holtet Hoff, founder and CEO of IPP Nordic Solar, echoed this sentiment, noting that while a narrow portfolio can increase risk, a balanced approach is crucial.
The speakers acknowledged a "slightly depressed" market environment for large-scale solar installations in Europe, but viewed this as an opportunity to explore more sophisticated project development approaches. Hoff mentioned the use of co-development agreements in certain countries, allowing IPPs to participate in attractive projects without establishing a physical presence.
The discussion also highlighted the growing importance of diversification across technologies, particularly solar and storage. Pinsard cited Telis' experience in Germany, where investing in both solar and battery energy storage systems (BESS) has ensured profitability despite market fluctuations. He pointed to the significant potential for BESS growth in Germany, given the limited current capacity and the increasing need for energy storage solutions.
The conference discussions underscore the evolving landscape of the European solar and storage market. IPPs are adapting to changing market dynamics by focusing on niche markets, leveraging technology diversification, and exploring innovative financing mechanisms to maximize returns.