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Lens Power and Renewables: helping you navigate the global energy market
Evaluate new opportunities, assess risk and make smarter business decisions with Wood Mackenzie's essential power and renewables intelligence platform
2 minute read
As the world moves towards decarbonisation, the energy landscape is undergoing a massive transformation, presenting both immense opportunities and complex challenges.
The power and renewables sector is seeing an era of unprecedented growth, but with that growth also comes uncertainty.
Read on for an overview of the challenges facing the sector - from market volatility and complexity to the race to build clean energy infrastructure - and learn more about how to identify the most attractive investment trends and growth opportunities for the energy transition.
The challenges
We’re currently witnessing the largest electricity demand growth since the 1990s. The US expects 4-15% growth through 2029, while the European Union forecasts a 1.5% annual increase by 2030. Asia Pacific, the fastest-growing power region globally, anticipates a 6% yearly growth by the end of 2025.
This surge is driven by multiple factors:
- Explosive growth in data centre development, fuelled by AI and cloud computing
- Resurgence in energy-intensive manufacturing, particularly in semiconductors, batteries, and solar
- Increasing transport and heating electrification
Navigating market complexity and volatility
As demand rises, so does market uncertainty. Key challenges include transmission constraints, aging grid infrastructure, supply chain disruptions, evolving regulatory landscapes and the integration of intermittent renewables at scale. These factors are driving increased volatility in power prices and asset values worldwide.
The race to build clean energy infrastructure
Generous incentives from policies like the US Inflation Reduction Act and Europe's Green Deal have catalysed a renewables boom. However, the path from policy to project is far from smooth, with blockers including land acquisition and permitting hurdles, grid upgrade requirements and shifting capacity accreditation rules.
Technology evolution and cost dynamics
The renewables industry continues to mature, with advancements in next-generation solar and wind technologies, long-duration energy storage solutions, green hydrogen production, and small modular nuclear reactors. While technology costs have generally declined, recent supply chain challenges and inflationary pressures have created uncertainty.
Introducing Lens Power & Renewables
In this complex, fast-moving landscape, Lens Power & Renewables provides crucial visibility and insights.
The Lens Power & Renewables product suite offers:
- Integrated analysis across the entire electricity value chain
- Bottom-up modelling of supply, demand and pricing dynamics
- Granular asset-level data and benchmarking capabilities
- Scenario analysis tools to stress-test assumptions
- Expert insights on policy, technology and market trends
Whether you're a utility planning for future demand, a developer optimising your project pipeline, an investor evaluating opportunities, or a large energy consumer securing clean power, Lens Power & Renewables empowers you to make informed decisions in this dynamic market.
The power and renewables sector stands at the forefront of the global energy transformation. While the challenges are significant, so too are the opportunities for those equipped with the right tools and intelligence. Wood Mackenzie's Lens Power & Renewables platform empowers stakeholders to turn complexity into competitive advantage, driving success in this new era of renewable energy.
Power up your energy decisions today by exploring Lens Power & Renewables - so you can navigate the energy transition with confidence.
Explore the Lens Power & Renewables product suite
Learn more about the products in our comprehensive Lens Power & Renewables offering: