Renewables: Normalization after the interest rate phase

Since the beginning of 2026, a selective recovery has been observed – albeit with significant differences between regions and business models.

Investors’ interest began to improve as early as 2025, primarily because several negative factors started to ease. In particular, the interest rate trend has reversed: After global interest rates peaked in 2023 and 2024, major central banks have taken or signaled initial easing steps. This noticeably improves financing conditions for capital-intensive projects.

At the same time, cost structures have partially normalized. Prices for key raw materials as well as transportation costs have declined from their peaks, although structural cost increases (e.g., in labor and financing) persist. Many companies have adjusted their project pipelines and pricing, which has not only stabilized but in some cases also improved margins.

The market continues to differentiate further

Companies with clear profitability, solid balance sheets, and strong pricing power are performing significantly better than those with high capital requirements and uncertain business models. The price declines in previous years have brought valuations in many areas back to fundamentally more attractive levels. At the same time, volatility has remained high, making a selective approach all the more important.

Growth prospects remain intact

The structural growth drivers for renewable energy remain strong. The global expansion of wind and solar energy continued in 2025 and is expected to reach new record levels again in 2026.

• For wind energy, a global capacity increase in the mid-single to low double-digit percentage range is expected in 2026, with increasing momentum in offshore, particularly in Europe and Asia.

• Solar energy remains the growth driver: Following another very strong expansion in 2025, additions of well over 400 to 500 gigawatts (GW) are also expected in 2026, driven primarily by China, the USA, and India.

Additional momentum comes from industrial policy programs (e.g., IRA – Inflation Reduction Act in the USA, EU Green Deal/Net-Zero Industry Act) that promote local value creation and investments.

Opportunities and risks

Where investment opportunities exist, risks naturally lurk as well. The risk-reward profile has improved compared to 2024 but remains challenging. Active equity selection therefore remains crucial.

Funds investing in renewable energy

Why renewables are so important

Renewable energy is a central building block for the transformation of the global energy system. The share of wind and solar energy in global electricity generation continues to rise dynamically and has now together reached well over 15%.

• Wind power
  Wind power remains a supporting pillar, with growing importance of offshore projects. Europe, China, and the USA remain the most important markets, with Europe increasingly focusing on repowering and offshore expansion.

• Solar power
  Solar energy is the fastest-growing energy source worldwide. Massive scaling has led to sharply falling costs for photovoltaic (PV) modules, but also to intense competition and price pressure along the value chain.

The funds Raiffeisen-MegaTrends-ESG-Aktien and Raiffeisen-SmartEnergy-ESG-Aktien exhibits elevated volatility, meaning that unit prices can move significantly higher or lower in short periods of time, and it is not possible to rule out loss of capital.