Photovoltaic cells (PV cells) convert sunlight into electricity. Thanks to their modular design, they range from balcony versions to large ground-mounted systems. Falling production costs make solar energy affordable: according to IRENA, PV electricity was on average 56% cheaper than electricity from fossil fuels in 2023.

Hydropower uses the energy of flowing water and is one of the most efficient and most widely used sources of electricity. With dams or reservoirs, energy can be stored and used flexibly, for example, for peak demand.

Biomass encompasses many things, from burning wood to biofuels made from sugar cane or grain. It offers huge potential in densely populated countries with growing energy requirements in particular.

Geothermal energy uses heat from the ground for heating, cooling and power generation. It is cost-effective, always available, and ideal for covering peak demand in the electricity grid.

Renewable energy: sustainable chances

Renewable energy – a turning point benefiting everyone

Q: What exactly is renewable energy?

Renewable energy comes from sources that renew themselves quickly or are not depleted, such as solar energy, wind power, geothermal energy, hydropower and biomass from renewable raw materials.

Q: Which technologies are most important?

Solar (PV) is the most important renewable energy source worldwide, followed by hydropower and wind power. Biomass and geothermal energy, on the other hand, are of less significance.

Q: How can I invest in renewable energy?

Investors can invest in individual companies or diversify broadly via funds, ETFs and certificates. Green bonds offer another investment option.

Q: Are there risks with sustainable energy investments?

Equities in the renewable energy sector are often volatile and react to supply chain problems, rising costs or political decisions. Targeted selection or diversification can reduce these risks.

Q: What role does Switzerland play in renewable energy?

Switzerland has used hydropower as an important renewable energy source for a long time, while technologies such as PV are becoming increasingly important. Many start-ups in Switzerland are committed to this sustainable topic.

Climate protection and energy security: investors can profit from investments in renewable energies

11 Mar 2026

Jérôme Allet

Head Public Distribution Switzerland – Global Markets Equity Derivatives

At the World Climate Conference (COP 21) in Paris in 2015, the international community agreed on a target that is binding under international law: by the end of the century, global warming is to be limited to well below 2 degrees Celsius compared to the pre-industrial age. At the same time, the aim is to keep the temperature rise below 1.5 degrees Celsius if possible. Reducing greenhouse gas emissions plays a key role in achieving this.

Inexhaustible energy sources instead of fossil fuels

The generation of heat and electricity from fossil fuels is considered one of the biggest emitters of greenhouse gases. In order to achieve a real turnaround here, in addition to more efficient energy consumption, the increased use of renewable energy sources is particularly necessary.

Important driver for innovation, jobs and the economy

According to figures from the International Renewable Energy Agency (IRENA), renewable energy sources with a capacity of 4.4 terawatts (TW) were installed worldwide at the end of 2024. This means that "renewables" accounted for 46.2% of total global electricity generation capacity. For comparison: in 2000, their share was around one fifth.

The International Energy Agency (IEA) assigns the production of green energy technologies, the development of corresponding electricity production, including battery storage, as well as the trade in electric vehicles and heat pumps to the "Clean Energy" sector. In 2023, these three segments contributed around USD 320 billion to global economic output. One tenth of world growth came from this area.

36.2 million people were employed in this up-and-coming sector in 2023. For comparison: there were 32.1 million jobs in the fossil fuel sector.

Contribution to global energy security and independence

Renewable energy has long been competitive. According to a study by IRENA, 91% of the large-scale renewable energy power plants commissioned in 2024 supplied electricity at a lower cost price than the cheapest, newly installed fossil-fuel power plants. With the help of wind, solar and hydroelectric power plants, countries that have long been dependent on the supply of fossil fuels can build up an independent supply.

Solar energy

Wind energy

Wind power converts the kinetic energy of the air into electricity. The performance of a turbine depends on its height and blade length. Since 1985, when turbines had an output of 0.05 megawatts (MW), the technology has developed considerably: today, onshore turbines achieve 3 to 4 MW, while offshore turbines can reach as much as 8 to 12 MW. Advances and economies of scale have made wind power significantly cheaper.

Hydropower

Biomass

Geothermal energy

Development of electricity generation costs by energy source

Cost of electricity generation when evened out (in USD per kWh)

Renewable energy technologies	Renewable energy technologies	2010	2010	2024	2024	Change	Change
Renewable energy technologies	Hydropower	2010	0.044	2024	0.057	Change	+30%
Renewable energy technologies	Solar energy	2010	0.417	2024	0.043	Change	-90%
Renewable energy technologies	Onshore wind power	2010	0.113	2024	0.034	Change	-70%
Renewable energy technologies	Offshore wind power	2010	0.208	2024	0.079	Change	-62%
Renewable energy technologies	Biomass	2010	0.086	2024	0.087	Change	+1%
Renewable energy technologies	Geothermal energy	2010	0.055	2024	0.060	Change	+9%

Long-term growth through climate targets and state subsidies

Despite the rapid expansion of renewable energies, a faster pace is needed to achieve the target of 1.5 degrees. According to IRENA, capacities must increase to over 11 TW by 2030 – around 2.5 times as much as in 2024.

Investing via equities or green bonds

Investors can invest in individual stocks such as wind turbine manufacturers, green electricity suppliers or PV specialists. Alternatively, capital can be invested in green bonds that finance wind farms, for example.

Diversification by means of funds, ETFs, certificates

In addition to actively managed funds, ETFs and structured products are also picking up on this megatrend. One example is the Solactive Renewable Energy Index, which comprises over 40 international companies from the wind energy, solar energy, renewable energy technology and green utilities sectors.

Invest in renewable energies

The Solactive Renewable Energy Index tracks the entire renewable energy value chain – from production to storage and distribution. With systematic equity selection, regular index reviews and broad diversification, this investment solution offers a sustainable perspective for your portfolio.

To the Solactive Renewable Energy Index

Dependence on political framework conditions
Politics is crucial for the expansion of renewable energies.
Global climate protection initiatives are heavily backing the sector.
However, some countries are deviating, e.g. the United States under the Trump administration, which favors fossil fuels.
Fragile supply chains, important raw materials, fluctuating financing costs
Complex supply chains in the production of renewable energies can lead to delays and higher costs.
The sector is dependent on raw materials such as silicon (PV) and rare earths (wind power).
Rising interest rates increase financing costs and can affect the profitability of PV and wind power plants.
Technological change as a challenge for companies and the public sector
Companies that fail to keep up the pace of innovation in renewable energies risk being left behind.
The expansion of renewable energies requires modernized and digitalized electricity grids.
Fast and uncomplicated approval procedures are essential for the sector.

Slide 1-3

A leader in hydropower

Thanks to its mountains and rivers, Switzerland mainly uses hydropower, which supplies around 60% of its electricity. New renewable energies, especially PV systems, are gaining in importance. Symbiosis can be seen in the Valais mountains: in 2019, a floating PV system went into operation at an altitude of 1,810 meters. High-alpine systems also generate a lot of electricity in winter.

Long-term stability through clear regulation

The Federal Council has developed the Energy Strategy 2050 to prepare Switzerland for the transformation of the energy markets. This has created a legal framework for the expansion and support of renewable energy sources.

Research and innovation

The government has launched two National Research Programs (NRPs) as part of the Energy Strategy 2050. Numerous studies have resulted in possible solutions and recommendations on how Switzerland could proceed with the transformation of its energy supply.

What exactly is renewable energy?

Which technologies are most important?

How can I invest in renewable energy?

Are there risks with sustainable energy investments?

What role does Switzerland play in renewable energy?

The global energy transition is driving climate and environmental protection and strengthening energy independence. This megatrend offers numerous opportunities for investors, from individual equities and funds to ETFs and certificates. Sustainable investing pays off – economically and ecologically!

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Contents:

Climate protection through lower CO₂ emissions

Inexhaustible energy sources instead of fossil fuels

Important driver for innovation, jobs and the economy

Contribution to global energy security and independence

Development of electricity generation costs by energy source

Long-term growth through climate targets and state subsidies

Investing via equities or green bonds

Diversification by means of funds, ETFs, certificates

Invest in renewable energies

Dependence on political framework conditions

Fragile supply chains, important raw materials, fluctuating financing costs

Technological change as a challenge for companies and the public sector

A leader in hydropower

Long-term stability through clear regulation

Research and innovation

Make an appointment

Call 0800 002 554

Disclaimer

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