Amid a just-passed U.S. climate bill unleashing record investment in domestic clean energy, energy transition efforts in the U.K. and Europe well underway and energy security concerns raised by the Ukraine war, institutional investors seem poised for the next level of investing in renewables.

“Over the last year alone, we’ve witnessed the highest levels of interest in renewables we’ve ever seen from institutional investors,” said Matt Setchell, co-head of Octopus Energy Generation’s fund management team in London. Part of Octopus Energy Group, a U.K. financial services and energy firm, Octopus Energy Generation, is a large investor in European renewable energy, managing 3.2 gigawatts of assets in eight renewable energy technologies in 10 countries that are currently valued at £4.4 billion ($5.4 billion).

It will take “hundreds of billions of pounds” to shift to 100% green energy, Mr. Setchell said, but global demand for renewables investment is growing quickly, along with opportunities that range from onshore and offshore wind to utility-scale solar farms and rooftop solar, battery storage and more.

In 2021, global energy transition investment was $755 billion, up 27% from 2020 and 186% from 2011, according to Bloomberg. The largest sector was renewable energy, which attracted $366 billion for new projects and small-scale systems, a 6.5% increase from 2020.

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