KBRA UK Releases Research – Diminishing Russian Carbon Reliance: Funding the Household Renewable Energy Transition in Europe

LONDON--(BUSINESS WIRE)--KBRA UK (KBRA) releases research on the funding of the carbon transition in Europe as it migrates away from Russian carbon reliance. Russia’s invasion of Ukraine and the commodity prices fallout have highlighted Europe’s dependence on Russian energy supplies and the general topic of energy security. A major uncertainty from this conflict is its implications for global carbon transition plans. One necessary area of focus is the opportunity for households and small businesses to participate in the transition. In this report, KBRA examines the opportunities—and financing obstacles—presented by solar compared to other renewable technologies. The European Green Deal includes a European Union (EU) directive that stipulates all member countries make community energy not only possible but also profitable.

Key Takeaways

• The energy transition among households and small businesses is key to reducing reliance on carbon-based fuel suppliers.
• The US is ahead of Europe in terms of funding availability for individuals and small businesses to enable the transition.
• Project finance offers commercial scale capital market funding, and securitisation offers the ability to scale residential funding for capital markets.

Challenges to the Transition

• Choice of alternatives
• Funding choices
• Regulations, power volatility, and grid adjustments

Click here to view the report.

Related Publications

• The Russia-Ukraine Conflict and Europe’s Energy Dependency

• Residential Solar Loan ABS: Sector Update
• Demand for Environmentally Friendly European Power Assets Risks Weakening Credit Profiles

• Financing the Green Transition

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.