{"id":17338,"date":"2026-02-05T14:26:57","date_gmt":"2026-02-05T13:26:57","guid":{"rendered":"https:\/\/greenbenefit.com\/management-commentary-02-05-2026\/"},"modified":"2026-04-07T14:35:45","modified_gmt":"2026-04-07T13:35:45","slug":"management-commentary-02-05-2026","status":"publish","type":"post","link":"https:\/\/greenbenefit.com\/en\/management-commentary-02-05-2026\/","title":{"rendered":"Management Commentary 02\/05\/2026"},"content":{"rendered":"\n

General Development<\/h2>\n\n

In January 2026, the fund price recorded an increase of 4.98 percent<\/strong>, continuing its positive trend following a strong 2025. During the month, the value appreciation briefly exceeded 10 percent, but it was unable to maintain this level. Emerging discussions regarding the potential replacement of the US Federal Reserve Chair led to broader market declines at the end of January. <\/p>\n\n

The fund continues to hold a top performance position in the Morningstar analysis among 710 sustainable funds over a 1-year comparison period. For full performance details, please refer to our factsheet<\/a>. <\/p>\n\n

January development shows a mixed picture<\/strong><\/strong>In January, fifteen of our portfolio holdings recorded gains, while fourteen saw declines. The largest positive contributions came from Fluence Energy and Ceres Power, as well as Plug Power, Enphase Energy, Aumann, and SMA Solar. <\/p>\n\n

The largest individual losses in January were recorded by Canadian Solar, Daqo New Energy, First Solar, and PowerCell Sweden.<\/p>\n\n

At the end of January, the equity ratio of our portfolio stood at 94.5 percent.<\/a><\/p>\n\n

Limited sales<\/strong>Minor sales were made in SMA Solar and Enphase for regulatory reasons (compliance with statutory maximum limits under the Investment Act).<\/p>\n\n

Geopolitical Developments<\/h2>\n\n

Discussions regarding new US Federal Reserve Chair<\/strong>After the US Federal Reserve cut the benchmark interest rate for the third time in 2025 in December, speculation about a possible new Fed Chair caused noticeable unrest in the financial markets. The candidate brought into play by President Trump, Kevin Warsh, was viewed critically by many market participants. Consequently, volatility increased significantly, particularly in commodity prices and interest-sensitive companies. This was also a key reason why the interim performance of around 10 percent reached in January could not be sustained. In parallel, the yield on ten-year US Treasuries fell to approximately 4.2 percent, a clear signal of increasing risk aversion. <\/p>\n\n

Overall, market movements pointed toward a broad reduction in risk. Even gold, which had previously benefited from the uncertainties surrounding the erratic policies of the Trump administration, corrected significantly. Investors began to question their previous assumptions, with US monetary policy decisions once again becoming the focus. The role of the US Federal Reserve is increasingly being discussed on a fundamental level. The Warsh appointment seemed particularly contradictory: on one hand, he was long considered a strict proponent of restrictive monetary policy; on the other, he recently spoke out in favor of lower interest rates\u2014a tension that further increased uncertainty. <\/p>\n\n

In the end, a sober realization remains: the person at the helm of the US Federal Reserve is undoubtedly important. However, the decisive factor for the markets is the interplay between fiscal policy, the bond market, and inflation expectations. This complex structure cannot be controlled by individual personnel decisions. This is precisely the core of the market nervousness\u2014less a fear of a specific person, and more a certain respect for the potential consequences that monetary policy shifts can trigger in this environment. <\/p>\n\n

Sector Reports<\/h2>\n\n

Solar \u2013 Storage \u2013 Grid: A Forward-Looking Core Architecture<\/h3>\n\n
\"\"<\/figure>\n\n

The drop in prices for battery storage is favoring a new system architecture that is increasingly establishing itself as a leading model: the combination of solar energy, storage, and grid infrastructure. Solar power can be used directly, fed into the grid, or temporarily stored. Storage balances fluctuations, increases flexibility, and enables demand-oriented use, while the grid ensures spatial distribution. <\/p>\n\n

With falling storage prices, the efficiency of this model is increasing significantly. Solar power can be used beyond sunset, peak loads are buffered, and grid bottlenecks are reduced. Battery storage systems are increasingly taking over functions previously reserved for conventional power plants, becoming the central link between generation and infrastructure. <\/p>\n\n

Development in Europe<\/h3>\n\n
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EU installs 27.1 GWh of battery storage in 2025, with utility-scale systems accounting for the largest share of growth.<\/p>\n\n

Report from the Solar Energy Industry Association<\/strong><\/h3>\n\n

SolarPower Europe is the leading European solar energy industry association, representing over 300 organizations and aiming to make solar and storage technologies Europe’s primary energy source by 2030. Based in Brussels, the organization acts as an interface between the solar PV industry and policymakers. <\/p>\n\n

Strong growth of battery storage in Europe<\/strong>The latest market report from SolarPower Europe shows a clear turning point in the European battery storage market. In 2025, 27.1 GWh of new battery storage capacity was installed in the EU, a growth of 45 percent compared to the previous year. For the first time, utility-scale systems represented the largest share of new installations at 55 percent, replacing the residential sector as the most important growth driver. This six percent decline in home storage to 9.8 GWh is primarily due to lower electricity prices and reduced subsidy programs, while commercial and industrial storage saw only moderate growth. <\/p>\n\n

Overall, Europe has already increased its battery storage capacity tenfold since 2021\u2014from 7.8 GWh to 77.3 GWh. To meet the flexibility requirements of an increasingly renewable energy system, this tenfold increase would need to be achieved again by 2030, requiring an expansion to around 750 GWh. The report underlines that batteries are now considered a mature and investable technology, particularly on a utility scale, where improved market conditions and more stable political frameworks have enabled record figures. <\/p>\n\n

In parallel, the analysis highlights the EU’s industrial base: while Europe has a nominal cell production capacity of 252 GWh in 2025 and strong positions in electrolytes and separators, structural weaknesses remain in cathode and anode materials. Furthermore, over 90 percent of cell capacities are geared toward electric vehicles rather than stationary storage. Project delays and comparatively high production costs further weigh on competitiveness. <\/p>\n\n

This development shows that the three sectors of solar, hydrogen, and batteries are increasingly merging through the concept of the “smart grid,” and this interplay is very important for our portfolio.<\/p>\n\n

Growing economic viability drives increasing expansion<\/strong>Current studies confirm the growing economic viability of combined solar-storage systems. An analysis by Fraunhofer ISE shows that solar energy in combination with battery storage can already be cheaper than electricity from new gas-fired power plants under certain conditions, even in Germany. <\/p>\n\n

In sun-rich regions, developments go even further. The first large-scale projects are emerging there that enable almost continuous power supply. One example is a project in the United Arab Emirates where, starting in 2027, 5 GW of solar capacity and 19 GWh of battery storage are intended to provide a constant baseload of 1 GW. Such projects illustrate that solar plus storage is increasingly becoming the standard model for energy generation in suitable regions. <\/p>\n\n

Model example of the interplay between solar and battery storage<\/strong>The diagram below also shows a model of how a 5 kW solar system with a 17 kWh battery in Las Vegas can provide a constant output of 1 kW over 24 hours. During the day, solar energy exceeds demand and charges the battery with 15 kWh, which then discharges 14.4 kWh after sunset to maintain the constant output. <\/p>\n\n

\"\"<\/figure>\n\n

Grid relief even in temperate climates<\/strong><\/p>\n\n

Battery storage is also gaining importance in less sunny countries. It reduces the need for fossil-fuel peak-load power plants, smooths load profiles, and relieves the grids. Since grid expansion is progressing more slowly in many places than the expansion of renewable energies, storage increasingly serves as a flexible bridge solution to securely integrate higher shares of solar and wind power. <\/p>\n\n

The data and graphics clearly show:<\/strong> The combination of renewable energies with battery storage is a central prerequisite for a higher share of renewables in the grid. Falling costs and rising investments are making this a structural growth area of high strategic importance for future energy infrastructure. <\/p>\n","protected":false},"excerpt":{"rendered":"

General Development In January 2026, the fund price recorded an increase of 4.98 percent, continuing its positive trend following a strong 2025. During the month, the value appreciation briefly exceeded 10 percent, but it was unable to maintain this level. Emerging discussions regarding the potential replacement of the US Federal Reserve Chair led to broader […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[88],"tags":[101],"class_list":["post-17338","post","type-post","status-publish","format-standard","hentry","category-management-commentary-advisors","tag-2026-q1"],"_links":{"self":[{"href":"https:\/\/greenbenefit.com\/en\/wp-json\/wp\/v2\/posts\/17338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/greenbenefit.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/greenbenefit.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/greenbenefit.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/greenbenefit.com\/en\/wp-json\/wp\/v2\/comments?post=17338"}],"version-history":[{"count":1,"href":"https:\/\/greenbenefit.com\/en\/wp-json\/wp\/v2\/posts\/17338\/revisions"}],"predecessor-version":[{"id":17339,"href":"https:\/\/greenbenefit.com\/en\/wp-json\/wp\/v2\/posts\/17338\/revisions\/17339"}],"wp:attachment":[{"href":"https:\/\/greenbenefit.com\/en\/wp-json\/wp\/v2\/media?parent=17338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/greenbenefit.com\/en\/wp-json\/wp\/v2\/categories?post=17338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/greenbenefit.com\/en\/wp-json\/wp\/v2\/tags?post=17338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}