Europe’s Renewable Energy Leaders Embrace Decentralised Growth and Diversification
As Europe’s renewable energy sector evolves, industry leaders are adopting innovative strategies to navigate a shifting market landscape. Adrien Pinsard, founder and CEO of the Telis Energy group, and Nikolaj Holtet Hoff, founder and CEO of IPP Nordic Solar, recently shared insights into their approaches to development, diversification, and maximising returns in the face of challenges.
A Decentralised Approach to Renewable Energy Development
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Pinsard described Telis Energy’s strategy as a “very decentralised approach to development,” focusing on Europe’s four largest power markets: Germany, France, Italy, and the UK. “We’ve kept the footprint relatively small, and we did this on purpose,” he explained. This approach allows the company to build strong local teams led by experienced professionals, ensuring organic growth and maximising the potential of each market.
Hoff echoed this sentiment, noting that Nordic Solar is focusing on fewer markets to deepen its portfolio. “We’ve kept all our assets – right now we’re selling them off in some countries – and we’re focusing on fewer markets,” he said. Both leaders agreed that a narrow and deep portfolio is more effective than a broad and shallow one, though Hoff cautioned against being too narrow, as it carries a “much higher risk.”
New Ways of Working in a Challenging Market
The European solar market has faced a “slightly depressed” habitat, according to Pinsard, which has cooled appetite for large-scale installations.However, Hoff sees this as an possibility to innovate. “We started focusing on fewer markets on the development side,” he said. Nordic Solar has entered co-development agreements in certain countries, leveraging external expertise to identify and execute attractive projects.
This shift aligns with broader industry trends, including the use of sophisticated financing mechanisms like securitisation and green bonds, which were discussed at a recent panel. These tools are seen as key to delivering returns in the current market.
Maximising Returns Through Diversification
Diversification, particularly across technologies like solar and storage, is emerging as a priority for renewable energy companies. pinsard highlighted Telis Energy’s success in Germany, where the company has invested in both solar and battery energy storage systems (BESS). “When we started with Germany, the obvious thing to do was PV,” he said.“That’s still part of what we do, for sure, but the sentiment around PV has changed in Germany [with] negative power prices, cannibalisation and the debate around what the next government wants to do with PV.”
The BESS market, on the other hand, is showing significant potential. Pinsard noted that less than 2GW of BESS is currently operational in Germany, a figure he finds “staggering.” With an increased duck curve, higher spreads, and limited utility-scale BESS development, the sector offers significant growth opportunities. “We’re spending more time on BESS than we perhaps anticipated [and] that’s how we maximise our team,” he added.
Key Insights at a Glance
| Strategy | Details |
|—————————–|—————————————————————————–|
| Decentralised Development | Focus on local teams and organic growth in key markets. |
| narrow and Deep Portfolios | prioritise depth over breadth, but avoid over-concentration in one market. |
| Co-Development Agreements | Leverage external expertise to identify and execute projects. |
| Diversification | Invest in both solar and storage to maximise returns.|
| BESS Growth Potential | Significant opportunities in Germany’s underdeveloped BESS market. |
Looking Ahead
As the renewable energy sector continues to evolve, companies like Telis Energy and Nordic Solar are leading the way with innovative strategies and a focus on diversification. For those interested in learning more about the latest trends and opportunities in European renewables, the upcoming Solar Finance & Investment Europe event in London on 4–5 February 2025 promises to be a key gathering of industry leaders.
By embracing decentralised development,co-development agreements,and technological diversification,Europe’s renewable energy leaders are positioning themselves for long-term success in a dynamic and challenging market.
Europe’s Renewable energy Leaders Embrace Decentralised Growth and Diversification
As Europe’s renewable energy sector evolves, industry leaders are adopting innovative strategies to navigate a shifting market landscape. In this interview,we sit down with Adrien Pinsard,founder and CEO of Telis Energy,and Nikolaj Holtet Hoff,founder and CEO of Nordic Solar,to discuss their approaches to decentralised growth,co-development agreements,and technological diversification. Their insights shed light on how companies are positioning themselves for long-term success in a dynamic and challenging market.
A Decentralised Approach to Renewable Energy Development
Editor: Adrien, you’ve described Telis Energy’s strategy as a “very decentralised approach to development.” Can you elaborate on what this means and how it benefits your operations?
adrien Pinsard: absolutely. our focus is on Europe’s four largest power markets: Germany, France, Italy, and the UK. By keeping our footprint relatively small, we’ve built strong local teams led by experienced professionals.This decentralised model allows us to grow organically and maximise the potential of each market. It’s about being deeply embedded in these regions rather than spreading ourselves too thin.
Editor: Nikolaj, Nordic Solar also seems to favour a focused approach. How does this align with your company’s vision?
Nikolaj Holtet Hoff: We’ve chosen to concentrate on fewer markets to deepen our portfolio. While we currently hold assets across several countries, we’re selling off some and focusing on those with the most potential. A narrow and deep portfolio is more effective than a broad and shallow one. However, it’s essential to avoid being too narrow, as that carries a much higher risk.
New Ways of Working in a Challenging Market
editor: The European solar market has faced some challenges recently. How have these influenced your strategies?
Adrien Pinsard: The market has been slightly depressed, which has cooled appetite for large-scale installations. Though, we see this as an opportunity to innovate and refine our approach. We’re focusing on what works best in each market and adapting accordingly.
Nikolaj Holtet Hoff: Agreed. We’ve shifted our focus to co-development agreements in certain countries. This allows us to leverage external expertise to identify and execute attractive projects. It’s a collaborative way of working that aligns with broader industry trends.
Maximising Returns through Diversification
Editor: Diversification seems to be a priority for both of your companies. why is this significant, and how are you implementing it?
Adrien pinsard: Diversification is crucial, especially across technologies like solar and storage. In Germany, for example, we’ve invested in both photovoltaic (PV) systems and battery energy storage systems (BESS). While PV remains a core part of our work, the BESS market is showing significant growth potential. With less than 2GW of BESS currently operational in Germany, there’s ample opportunity for development.
Nikolaj Holtet Hoff: From our viewpoint, diversification helps mitigate risks and maximise returns. by focusing on multiple technologies, we can adapt to market changes more effectively and ensure long-term success.
Key Insights at a Glance
| Strategy | Details |
|---|---|
| Decentralised Development | Focus on local teams and organic growth in key markets. |
| Narrow and Deep Portfolios | Prioritise depth over breadth, but avoid over-concentration in one market. |
| Co-development Agreements | Leverage external expertise to identify and execute projects. |
| Diversification | Invest in both solar and storage to maximise returns. |
| BESS Growth Potential | Significant opportunities in Germany’s underdeveloped BESS market. |
Looking Ahead
Editor: What’s next for Telis Energy and Nordic Solar as you navigate these evolving market conditions?
Adrien pinsard: We’ll continue to focus on our local teams and explore growth opportunities in the BESS market. It’s about staying agile and adapting to the changing landscape.
Nikolaj Holtet Hoff: Similarly, we’ll deepen our portfolio in key markets and continue to innovate through partnerships and technological diversification. The future is about balancing focus and flexibility.
Editor: Thank you both for sharing your insights. It’s clear that decentralised development, co-development agreements, and diversification are key to thriving in Europe’s renewable energy sector.
