Pan Euro Renewables: Value creation spreads Q1 reality check

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Pan Euro Renewables: Value creation spreads Q1 reality check

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Pan Euro Renewables

Value creation spreads Q1 reality check

Industry Overview

Europe still constrained, US better 15 May 2026

We still see no clear sign of improving value creation spreads for onshore wind and solar Equity

for European developers, after three years of declines. Pricing has not structurally Pan Europe

improved, capex relief remains limited at best, and cost of capital is not easing – leaving Renewables

overall returns and spreads broadly constrained and limiting the scope for positive Alexandre Braunshausen, CFA >>

growth revisions. Stabilization is conditioned on better US allocation to sustain both Research Analyst

relative and absolute value creation, whilst it remains to be seen if a new European MLIalexandre.braunshausen@bofa.com(UK)

electrification target can provide a new impetus (see report: AccelerateEU). Peter Bisztyga >>

Research Analyst

Keeping loading on storage MLIpeter.bisztyga@bofa.com(UK)

With no evidence of improving value creation for onshore wind and solar, we continue to Marcin Wojtal >>

prefer exposure to storage – an area we described reaching a ‘sweet spot’ (see our Research Analyst

MLI (UK)

reports: Year Ahead 2026: Amped up for growth and Recharging Renewables: Storage marcin.wojtal@bofa.com

Primer 2.0). Nascent deployments in Europe of ~30GWh in 2025 are accelerating Julius Nickelsen, CFA >>

towards ~60GWh by 2028, and we estimate it could take ~30 years to catch up with the Research Analyst

existing solar fleet. Spreads continue to widen, ancillary services remain highly valuable, julius.nickelsen@bofa.com

and capex continues to fall, supporting higher IRRs than conventional renewables. Noe Gonzalez >>