Powering the Energy Transition Through Joint Ventures and Partnerships

MARCH 2024 – Massive capital demands, complex regulatory requirements, and high interest rates are threatening to bring the green energy transition to its knees at a crucial time for maintaining momentum. The International Renewable Energy Agency (IRENA) estimates that by 2030, the world will need to add 1000 GW of new capacity every year to keep global warming below the critical threshold of 1.5 degrees Celsius set in the 2015 Paris Agreement. That would mean average annual investment of more than USD 1.3 trillion by 2030 – a number that the world is nowhere near reaching.

Addressing the greatest collective action challenge that humanity has ever faced will require monumental efforts in both the public and private sectors. Governments must take radical action to catalyze the energy transition with a variety of carrot-and-stick approaches to incentivize clean energy investments and penalize carbon emitters. Companies, for their part, will need to work together to overcome the massive financial and technical hurdles involved in deploying the renewable electricity generation we need – and to deploy crucial enablers like clean hydrogen and carbon capture at scale.

Partnerships – whether joint ventures or less-formal formal alliances – are not a nice-to-have but an imperative for the energy transition to succeed and should be treated as a standard modus operandi in clean energy. Our new article in Renewable Energy World presents the latest data in clean energy partnership formations from the Ankura Joint Venture Index, explores the motivations behind these partnerships, and offers advice to clean energy dealmakers on how to set up new partnerships for success.

Read the full article in Renewable Energy World.