The European Union’s solar power sector is poised to record its first annual decline in capacity since 2015. According to a mid-year analysis released by the industry association SolarPower Europe, projections indicate the EU will install 64.2 gigawatts (GW) of solar capacity in 2024, marking a 1.4% decrease from the 65.1 GW achieved in 2023.

This decline comes despite rising solar output across Europe, with expectations for a significant increase in production during the summer months. Dries Acke, deputy CEO of SolarPower Europe, emphasized the importance of this shift, stating, “The number may seem small, but the symbolism is big. Market decline, right when solar is meant to be accelerating, deserves EU leaders’ attention.” He urged policymakers to create supportive frameworks for electrification, flexibility, and energy storage to ensure continued solar success throughout the decade.

Factors Contributing to the Decline

The anticipated reduction in solar capacity growth follows remarkable expansions in previous years. In 2022 and 2023, installations surged by 47% and 51%, respectively. However, growth slowed to a 3.3% increase in 2024, primarily due to challenges in the rooftop solar segment, particularly for residential installations. Households in traditionally strong markets such as Italy, the Netherlands, Austria, Belgium, Czechia, and Hungary have begun postponing installations as the effects of the 2022 energy crisis diminish.

The withdrawal of incentive schemes without effective replacements has severely impacted the residential rooftop market, which has seen a decline of over 60% compared to the previous year. This trend raises concerns about the EU’s ambitious target of achieving 750 GW of solar photovoltaic (PV) capacity by 2030, which requires annual additions of nearly 70 GW.

Implications for Future Goals

Current forecasts suggest that Europe is likely to fall short of its solar energy targets, with projections estimating a total of 723 GW of installed solar PV by 2030 instead of the required 750 GW. The outlook indicates a significant challenge for the EU, which has positioned solar energy as a cornerstone of its energy strategy.

As the solar market grapples with these headwinds, industry leaders are calling for renewed commitment from policymakers. The future of solar energy in the EU hinges on the ability to adapt to changing market conditions, ensuring that incentives are aligned with the goals of energy independence and sustainability.

The developments in the EU solar market underscore the need for strategic planning and support mechanisms to sustain growth in the renewable energy sector.

KEI Industries Limited has reported impressive financial results for the first quarter of FY26, showcasing a revenue increase of approximately 26% year-on-year to INR 25.9 billion. This figure exceeded analyst expectations by around 9%, largely driven by robust performance in the company’s cables and wire segment.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also showed strong growth, rising by nearly 20% year-on-year to INR 2.6 billion, surpassing forecasts by approximately 12%. Despite these positive outcomes, operating profit margin (OPM) contracted by 45 basis points to 10.0%, although it was 20 basis points above estimates.

Management Insights and Growth Projections

KEI Industries’ profit after tax (PAT) increased by about 30% year-on-year to INR 2.0 billion, again beating analyst expectations by 12%. Management has expressed a strong demand outlook, particularly in sectors such as power transmission and distribution (T&D), renewable energy, data centers, and manufacturing.

The company maintains its growth guidance for FY26, projecting an increase of approximately 18-19%. Over the next two to three years, KEI expects growth to accelerate to around 20%, driven by the completion of its Sanand expansion and continued strategic initiatives, including recent land acquisitions in Gujarat and Rajasthan for future development.

Furthermore, KEI aims to achieve an OPM of approximately 11%, buoyed by a strong order book for domestic institutional cables as well as export orders. The anticipated completion of Phase I of the Sanand facility is expected to further enhance profit margins.

Valuation and Market Position

Motilal Oswal’s research report values KEI Industries at 38 times the estimated earnings per share for June 2027, applying a 5% discount compared to its competitor, POLYCAB, due to KEI’s lower margins. This analysis results in a target price of INR 4,200 per share.

Following the release of these results, Motilal Oswal has reiterated a neutral stance on KEI Industries, reflecting the company’s solid performance amid a competitive landscape.

“The demand outlook remains strong, led by power T&D, renewable energy, data centers, and manufacturing sectors,” management stated.

As the company continues to expand its operations and enhance its market position, stakeholders are advised to stay informed about future developments and consult with certified financial experts before making investment decisions.

Prime Minister Narendra Modi received a warm welcome from the Indian diaspora in London during his arrival for a two-day visit on July 23, 2025. Expressing his gratitude, Modi highlighted the community’s affection and passion for India’s progress. This visit, he noted, aims to strengthen the economic partnership between India and the United Kingdom.

The signing of the India-UK Free Trade Agreement (FTA) stands out as a pivotal moment in Modi’s itinerary. He emphasized the significance of the UK as a partner, stating that the Comprehensive Strategic Partnership has gained considerable momentum over recent years. “A strong India-UK friendship is essential for global progress,” Modi remarked, underscoring the deal’s role in promoting prosperity and job creation in both nations.

The FTA, which has been in negotiation since January 2022, is poised to greatly enhance Indian exports. Nearly 99% of Indian goods sent to the UK will now benefit from zero-duty access. This change will eliminate tariffs ranging from 4% to 16%, with particular advantages for sectors including textiles, leather, footwear, toys, marine products, gems and jewellery, and engineering goods such as auto components and electric vehicles.

British Prime Minister Keir Starmer characterized the upcoming FTA as a “major win” for jobs and economic growth. He noted that tariff reductions would lead to lower prices on essential goods such as clothing, footwear, and food products. Furthermore, Starmer announced that Indian firms are poised to invest nearly GBP 6 billion in new initiatives in the UK, while British businesses will gain access to new opportunities in India.

In addition to the trade agreement, Modi and Starmer are expected to renew the Comprehensive and Strategic Partnership, fostering closer collaboration on defence, education, climate, technology, and innovation. Starmer reaffirmed the importance of this trade deal, stating, “It will create thousands of British jobs across the UK, unlock new opportunities for businesses, and drive growth in every corner of the country, delivering on our Plan for Change.”

This visit not only strengthens ties between India and the UK but also signals a commitment to mutual growth and innovation. As the two leaders prepare to finalize the FTA and other agreements, the impact of their discussions is anticipated to resonate across both nations, ultimately benefiting their respective populations.

British energy giant BP has announced a significant divestment from its wind power portfolio in the United States, signaling a strategic pivot back towards traditional oil and gas operations. This move occurs amidst growing concerns regarding the financial viability of renewable energy projects, particularly in light of recent political changes and shifting market conditions.

The divestment involves a portfolio of 1.3 gigawatts (GW) of existing wind capacity, which BP will sell to LS Power. This decision reflects a broader trend among major oil companies to reassess their investments in renewable energy, even as governments continue to offer subsidies to promote such initiatives.

William Lin, BP’s Vice President for Gas and Low-Carbon Energy, commented on the necessity of this move, stating, “We have been clear that while low carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalize and optimize our portfolio to generate value.” The strategic shift indicates BP’s renewed focus on sectors that reliably yield profits, particularly given the uncertain landscape for wind and solar energy in the United States.

This change is particularly notable following the energy policies implemented by former U.S. President Donald Trump, who openly expressed skepticism towards wind power and initiated measures that have disrupted the renewable energy sector. A study by Enverus found that only 57% of wind power projects in the U.S. are expected to remain viable under current conditions, with an even more concerning projection that only 30% of solar capacity is resilient to the end of existing subsidies.

BP’s strategic retreat from wind and solar power comes after a tumultuous period under the leadership of former CEO Bernard Looney, who aggressively pursued a green transition strategy. This included ambitious targets to increase power generation from renewable sources by 20-fold by 2030, alongside plans to cut oil and gas output to reduce emissions. However, the company has since scaled back these ambitions, acknowledging that the transition to renewable energy has not delivered the expected returns.

The divestment is part of BP’s broader strategy to generate up to $20 billion from asset sales, with a target of $3 billion to $4 billion for this year alone. As of April, the company had already completed $1.5 billion in divestments, although the precise financial details of the wind power deal remain undisclosed.

In a separate development, BP has also taken steps to re-enter the Libyan market, which it exited over a decade ago due to the civil war. Earlier this month, BP signed a preliminary agreement with the National Oil Corporation to redevelop two significant oil fields in the Sirte Basin. The company plans to reopen its office in Libya by the end of the year, indicating a renewed commitment to this resource-rich region.

While BP’s retreat from renewable energy projects may seem disheartening for advocates of transition to low-carbon sources, it is not indicative of a complete withdrawal from alternative energy investments. Other major companies continue to explore opportunities in renewable energy. For instance, TotalEnergies recently launched a significant wind power project in Kazakhstan, demonstrating that there remains a market for renewable energy investment.

BP’s recent decisions underscore the complexities and challenges facing the energy sector as it navigates the balance between traditional fossil fuels and renewable energy sources. The company’s latest moves reflect a pragmatic approach to business in an evolving market, where profitability remains a central concern.