Shell has vowed to invest up to $2bn every year to 2020 in its new energies division, which is tasked with growing the Dutch company’s renewables business.

The largest part of the cash will be spent on power generation, which includes wind and solar, Shell said in its energy transition report published on Thursday.

“The decline in costs of solar and wind generation, along with the electrification of the energy system, make the development of renewable energy resources increasingly attractive for society, and an attractive investment opportunity for Shell,” said the report.

The company also warned of “regulatory uncertainty” in some markets that could hit long-term revenues.

“To avoid this, we are seeking to invest in projects that are commercially viable today. In addition, we will select the best technology option for each project, depending on the rapidly evolving technology landscape.”

Shell is seeking equity returns of between 8% and 12% for the business, which is targeting “selected markets” in North America and Europe as well as countries with “fast-growing” renewables sectors.

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