GS Utilities Daily_ Wind power hits record high in UK __ Biden Administration extends IRA tax credits to clean tech

Industry and Company Overview * Industry: Utilities, specifically focusing on electricity generation and transmission. * Key Companies: Enel, RWE, SSE, EDPR, EON, National Grid, Iberdrola, Vestas, Siemens Energy. Key Points and Arguments 1. Wind Power Record High in UK: Wind energy accounted for 30% of UK electricity generation in 2024, the largest share among all sources. This highlights the growing importance of renewable energy in the UK's energy mix [4]. 2. Biden Administration Extends IRA Tax Credits: The extension of IRA tax credits to clean energy technologies, including geothermal, hydropower, and nuclear, is expected to boost investment in clean energy [4]. 3. European Energy Transition: The European energy transition is entering a new stage where affordability becomes a key constraint. Electrification is likely to continue only where economically viable [5]. 4. Draghi Plan: The Draghi Plan, presented by former ECB President Mario Draghi, includes recommendations to promote private investment and boost Europe's competitiveness. Electrification is at the core of the plan, with significant investments in clean energy and electric mobility [7]. 5. AI Datacenters and Electrification: The rapid expansion of datacenters and the gradual pick-up of the electrification process could boost Europe's power demand by 40%-50% over the next ten years [8]. 6. Power Grids as Central to Electrification: Power grids are pivotal to Europe's electrification process, and the investment needs in transmission and distribution (T&D) are significant, estimated at €650 billion over 2021-30 [9]. 7. Power Networks Activities: Power networks activities are seen as an incremental leg in the re-rating thesis for Green Energy Majors, with EON, SSE, and Enel as the best-positioned integrated stocks [11]. Other Important Content * Research Reports: The document highlights several research reports related to the European energy transition, including "Powering Up Europe: Who pays for the Energy Transition?" and "Powering Up Europe: The Draghi Plan: Electrification to kick-start Europe" [5, 7]. * Events to Watch: The GS Utilities Virtual IR Day is scheduled for 9 January 2025 [5]. * Analyst Certifications: The analysts certify that their views accurately reflect their personal views about the subject company or companies and its or their securities [13]. * Regulatory Disclosures: The document includes various regulatory disclosures related to investment banking relationships, ratings, and other important information [19-23].