According to Citigroup in a recent analysis reported by Bloomberg, Europe’s energy expenses are likely to reach a record high of $1.2 trillion in 2022 due to skyrocketing energy commodity prices, which have risen further since Russia’s invasion of Ukraine. This past week the world market reacted to war news. Oil prices have surpassed $100 per barrel for the first time since 2014. In reaction, renewables stock prices have jumped and may be seen as an alternative.
Europe Made Strides With Renewable – But Not Enough
The rise in energy prices demonstrates Europe’s continued dependence on imports to fulfill demand. Even while renewable energy is growing rapidly, it is not alleviating the problem of reliance.
Analysts such as Alastair Syme said in the study that the continent is “facing a big headwind from its energy bill.” Citi’s projection has increased by about $200 billion since January and now exceeds the previous peak set in 2008.
With Europe reliant on gas and oil imports to meet more than half of its energy demands, the current supply shortage has driven up costs for everything from food to fuel. As a result, governments around the region have pledged billions of dollars to cushion the hit for consumers. “However, this pricing pressure will eventually trickle down,” the experts said.
Renewables Stock Prices Bounce Back From Losses During Initial Russian Invasion of Ukraine
The market seemed to have recovered from its initial losses on the onset of the Russian invasion. The European Renewable Energy Index increased by up to 9.3%. It was the largest stock gain since the epidemic lows two years ago in March 2020, and it contrasted sharply with the European market’s collapse. Siemens Gamesa Renewable Energy SA (GCTAF) and Vestas Wind Systems AS (VWSYF) were the biggest winners in Europe, with each increasing by more than 10%.
Locally, DTE Energy (DTE) recovered from midweek losses up 1.86% to $121.95. NextEra Energy (NEP) saw a 5.34% recovery from the midweek dip to settle in at $75.53. General Motors is expected to be 100% renewable with its business plan by the year 2050.