Professional investors to increase exposure to renewable energy

Professional investors to increase exposure to renewable energy

New research from Renewable Energy Waste Solutions (REWS) reveals that 71 per cent of institutional investors and IFAs expect the amount invested in renewables to increase over the next three years.  

Some 17 per cent anticipate the value invested during this time will ‘increase dramatically’, and only 8 per cent anticipate a decline.
 
Over the longer term, exposure to renewables from investors will be even stronger. Between now and 2022, 75 per cent of investors interviewed expect the amount invested to increase, with 23 per cent anticipating a dramatic rise.
 
When asked to pick the main reason why they expect investors to increase their exposure to renewables, 44 per cent said the political and social environment is becoming even more supportive of the sector.   This was followed by 27 per cent who said as an asset class renewables has low correlation with other investments. Some 13 per cent said it was because they have an increasingly strong and proven track record as an investment, and 12 per cent said it was because they offer attractive returns in the current environment.
 
Another attractive feature of renewables is that 62 per cent of investors expect renewable generation costs to fall over the next three years. 
 
William McClintock, Chairman REWS, says: “Investors are becoming more aware of the growing opportunities in the renewables sector. As the industry builds on its already impressive track record for providing steady and strong returns to investors, its attractiveness as an asset class will only increase. Furthermore, asset owners are becoming increasingly sophisticated and looking for ways to diversify their portfolios and renewables offers them this.”