With gas supplies in Europe seriously threatened by Russia's invasion of Ukraine, and gas and electricity costs at all-time highs, Europeans are turning to solar energy.
The European Union's 27 member nations saved more than $29 billion in imported fossil gas throughout the summer, according to Ember, an energy think tank.
According to Ember's research of monthly electrical generating data, solar energy made up a record 12.2% of the EU's electricity mix between May and August of this year.
This is higher than the electricity produced by wind (11.7%), hydropower (11%) and is not far off the 16.5% produced by coal.
Read Also: Mild Winter Ahead In Europe? Here's What Natural Gas Prices Are Reflecting
What Happened: Recent earnings reports from two companies operating in Europe highlighted an increase of interest in renewable energy.
Solaredge Technologies Inc’s SEDG residential and commercial segments of European countries have aided the company’s sales growth in the third quarter, buoyed by its strong product portfolio and presence in the region.
"We are pleased with our third quarter results, setting new revenue and operating profit records. The results reflect extremely strong momentum in Europe where our revenues grew 90% compared to the same quarter last year," said Zvi Lando, CEO at SolarEdge.
The company reported record revenues of $836.7 million, up 15% from $727.8 million in the prior quarter and up 59% from $526.4 million in the same quarter last year.
SolarEdge isn’t the only player.
SunPower Corporation SPWR, which reported earnings Tuesday morning, said it continued to break records for customer growth and revenue, putting the company on track toward the high end of its 2022 guidance.
The company announced earnings per share of $0.13 on revenue of $475.7 million, beating consensus estimates by 53.05% and 11.23%, respectively.
"In the third quarter we continued to break records for customer growth and revenue, putting us on track toward the high end of our 2022 guidance for these metrics,” said Peter Faricy, CEO of SunPower. “Our strategy is working: with our focus on providing a world-class customer experience and industry-leading products, coupled with the right financing options, we are driving strong market share gains and a significant backlog that we believe will benefit us well into 2023."
Why It Matters: Earlier in the year, natural gas surpassed nuclear as the primary energy source in Europe. This underscores the difficulty of finding a replacement fuel before the winter when demand would increase and keep energy prices for Europeans at record highs.
According to data from Rystad Energy AS, nuclear power dropped out of first place for the first time in two years, primarily because French reactors were hampered by protracted outages.
According to Rystad analyst Fabian Roenningen, prior data showed how few alternatives to gas are available in European nations for the production of energy. This winter, with the possibility of potential gas supply disruptions, blackouts and rising heating demand, other power sources will be crucial.
Indeed, other power sources are critical for Europe, and it seems Europeans are facing the problem head-on with renewable — solar — energy.
Photo: Courtesy SunPower Corporation
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