Renewable energy is a proven asset class for institutional and private investors.
By investing into sustainable real assets such as wind and solar, investors can hold the asset for the long term income stream, providing stable inflation linked returns.
The development opportunities to invest in consented Renewable Obligation Certificate (ROC) and Contract for Difference (CfD) projects are now limited. However a significant number of opportunities exist to invest in operational assets. Operational assets have a proven track record and secure revenues as ROCs and CfDs are grandfathered. Therefore they are not subject to the government's early closure of the Renewables Obligation and CfD regimes.
Currently on-shore wind and ground mounted solar are the best established of the renewable energy technologies. For more details on investment opportunities please contact FIM.
Attractive Index Linked Income Streams
The UK is a prime location to invest in renewable energy projects.
- UK demand for electricity is forecast to rise, despite the drive for energy efficiency, whilst supply from existing generators is forecast to decline as older plants which cannot meet emission targets or are outdated are decommissioned. This should lead to upward pressure on power prices over the long term.
- UK power prices have declined over recent times and FIM believe now is a good time to acquire renewable energy assets whilst power prices are relatively low.
- UK Government has targeted 15% of total energy consumption to come from renewable sources by 2020.
- The UK has the best wind resource in Europe and assets enjoy high capacity factors generating high levels of electricity output and therefore revenues.
- These market conditions provide attractive returns to investors through indexed linked cash flows and potential upside from power as prices are expected to rise.
There are a significant number of UK opportunities for equity investors in both operational wind farms and solar parks. There are some opportunities for development projects both on and off market which FIM has access to.
FIM is able to source and structure a transaction to suit your investment requirements.