This is Exchanges Goldman Sachs where we discuss developments currently shaping markets, industries, and the global economy.

I'm Jake Seward, Global Head of Corporate Communications here at the firm.

We're here in London today as part of a closer look at European markets and themes,

and we'll be talking today about renewable energy in Europe. at European

Markets and Themes, and we'll be talking today about renewable energy in Europe.

I'm joined by Alberto Gandolfi, head of European Utilities Research

team in Goldman Sachs Research,

and we're going to talk about the region's renewable transformation from the

declining cost of wind and solar power to the role electric vehicles are playing and

much much more. Alberto, welcome to the program.

Thank you Jake for having me. So you recently wrote about the

plummeting costs of wind and solar here in Europe. Give us a brief overview of

the picture here in the European market. We've been doing extensive work on

renewables because it really started as effectively function of very strong policy by the European Union.

But quickly the economics of renewables are taking over and they're becoming as important as policy and we think in the future they're becoming more important.

Just to give you a couple of stats, the cost of producing electricity from solar photovoltaic has dropped by about 80% since 2010.

And the cost of producing electricity from wind onshore or offshore that it is has come off between 50 and 70 percent.

So really these technologies used to be subject to incentives.

That's how European Union started to have its policy because they were extremely expensive.

But in several regions of Europe right now, renewables are way way cheaper than any other technology.

So we think they're going to displace conventional generation over the next decade.

So it's been a policy case now it's a market driven phenomenon.

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