Industrials: What are the opportunities for investment in renewable energy?
Renewable energy continues to move from the margins to the mainstream. In the UK, renewables supplied around half of total electricity generation in 2024, with solar deployment accelerating sharply in 2025 and wind power remaining the backbone of the system. Globally, the pace is even more striking: international energy agencies forecast that new renewable capacity added between 2025 and 2030 will be roughly double that of the previous five‑year period, driven by decarbonisation targets, energy security concerns and falling technology costs.
Yet for UK mid‑market investors, renewable energy is not a straightforward growth story. Business linked directly to power generation assets can be exposed to planning delays, grid constraints, policy risk and customer concentration. Given the early-stage nature of the sector, it is also difficult to identify long‑term winners. As a result, some of the most attractive opportunities don’t sit in power generation itself, but in the ecosystem that enables the energy transition.
One such area is testing, inspection and certification (TIC). As renewable assets scale and age, demand is rising for independent inspection of sites and components, from wind turbine blades to solar inverters. The TICC sector has long been favoured by investors for its resilience and recurring revenues, and technology‑enabled inspection, monitoring and predictive maintenance only strengthen that appeal. Read our recent article HERE.
Energy transition infrastructure is another compelling angle. The expansion of renewables depends on significant investment in grid upgrades, battery storage and EV charging networks. Service providers supporting this build‑out benefit from long‑dated structural demand without being directly exposed to power generating assets.
The waste and circular economy also offers scope for growth. With the UK waste management market expected to expand materially over the next few years, regulation and corporate sustainability commitments are driving demand for services ranging from IT asset disposal to specialist environmental consultancy.
Finally, software, data, and skills are emerging bottlenecks. Asset owners increasingly need sophisticated tools to manage energy usage, optimise performance and control costs, while acute skills shortages are fuelling demand for high‑quality training and education providers.
For investors, while renewables themselves may be complex, the picks‑and‑shovels of the energy transition can offer a more diversified and resilient route to capturing long‑term growth.
To discuss any of these themes in more detail, please contact:
Matt McNally
mmcnally@armstrong-ts.com
+44 7894 736 523