The Role of Specialized Investment Funds in Funding Renewable Energy Projects

来源 :BIT`s 2nd Low Carbon Earth Summit-2012 2012第二届低碳科技大会 | 被引量 : 0次 | 上传用户:shengli1011
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  Institutional investors are in search for alternatives for the major assets classes (government bonds and listed stocks) because of either too low returns on high rated bonds or high volatility.Renewable energy projects are an attractive asset class because of long term stable returns and predictable value.However, even with the most advanced investors, these investments are in total well below 1% of the portfolio.Therefore, there is room for unlimited growth for renewable energy investments, provided that challenges can be overcome.The main limiting factor is the high level of complexity involved in renewable energy transactions, combined with the relative small size of such transactions.Developers of renewable energy assets face difficulties in attracting funding for their projects, for which reason attractive projects are being delayed or not realized at all.It should be noted that certainty of funding for the total project costs (mostly a combination of different funding sources) is required before start of construction and such funding is interrelated with the structuring and contracting of the projects.Investment funds such as Ampere Equity Fund provide specialized knowledge and experience in large scale investment in renewable energy projects required to select the appropriate projects, perform due diligence and risk analysis, structuring and long term asset management.As such, these specialized funds are vital in bringing sources of capital to projects requiring funding.With that, these funds are able to offer large tickets in well balanced portfolios to institutional investors, providing the stable returns and predictable value these investors require.
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