Creating a more defensive portfolio with renewable energy (1 MW – 700 MW available)
Solar park / Solar roof portfolios – Switzerland, Germany, France, Spain, USA, Chile, Brasil, Japan, Australia
- Stable returns with long-term power purchase agreements
- Numerous references as banks and asset manager
- Reduction of volatility in a traditional investment portfolio
- Optimal contract conditions with reporting – No “Green washing”
- => Solar Boom thanks to increasing Grid Parity
(Price Solar power ≤ Price Conventional power)
Wind park portfolios – Worldwide stronger winds
- Global average wind produced ~17% more energy in 2017 than in 2010. Wind speeds predicted 37% more by 2024 (Source Princeton University).
- With around half a million wind power plants worldwide, the technology is well matured and scalable.
- Wind power plants produce the most electricity during the winter months. An ideal seasonal diversification of solar plants.
- About 99% of the land area for wind parks can continue to be used as for agriculture or solar plants (hybrid plants)
Renewable Energy for Infrastructure – Green- and Brownfieldmix
- We prefer partners with own research team and stable dealflow with green- and brownfield investments for green bonds as well
- Compared with traditional equities or bonds, the liquidity of a medium- and long-term infrastructure asset is limited
- “Even if institutional investors would reach their target allocations, would that be only a small fraction of the US$ 57,000 bill. needed in infrastructure” (Source McKinsey: Our Insights, Voices on Infrastructure)
- High growth of population and aging population
- Massive government debt, out of date infrastructure
- Necessary for fundamental economic recovery
Renewable Energy as investment – The better Green Bonds
- Individual or standard solution by preference – Scalable
- As diversification with low correlation to traditional „financial assets“
- Inelastic demand for basic supply – predictable revenue cash flows – with solar/wind plants in use ∅ 6% p.a. or solar projects ∅ 12% p.a. (hist. ret.)
- Ideally a diversified portfolio of direct and indirect investments mainly in the public area of infrastructure (with inflation protection)
- Preferably in industrialised countries with investment grade or safe advanced refinancing techniques like – “pay-as-you-go”
GRID PARITY already in more than 30 countries as enormous POTENTIAL
Solar and wind energy production expected to increase by the factor 60 for solar plants resp. 13 for wind parks from 2015 to 2050. (Source: McKinsey, Our Insights,
Global Energy Perspective 2019). Global Grid Parity turning point reached by around 2030.
To avoid project and currency risks, we are working with professional partners. Here, the investment needs for green bonds can already be met from a relatively small investment size diversified by asset class, regions, access and project pipeline – power supply, water and sewage systems, communication, transport sector, education and health care. This results at long term in above-average return potential for the investor as passive income possible. See also for renewable energy “Why Apple and Google are going solar plants” (BBC-Future), Elon Musk or Warren Buffett.
Solid Infrastructure like Solar farms as alternative investment
The growing importance of renewable energy investments like green bonds demands a core competence of your partner in this infrastructure area. For example, solar plants in the desert of Morocco, solar plants in China (BBC TV) or long-term algae plantations in the sea, as third-generation biofuels, could cover a significant part of the energy needs of the humankind and, at the same time, could also sustainably reduce the CO2 share in the earth’s atmosphere (study „Negative carbon via ocean afforestation, Department agricultural and biological engineering“, University of Florida, USA, 2012).
Overproduction of electricity from solar plants can be used to split water into oxygen and hydrogen. This recovered hydrogen with a multiple density than gasoline goes then in fuel cells from trucks, buses, cars, trains, ships, buildings or electrical devices back to electricity (reverse electrolysis). With this hydrogen technology as energy buffer in the alternative value chain, power networks can be relieved. For completeness it is mentioned, that there are opportunities and structures not available for public, being reserved for so-called qualified investors. It is recommended to attend alternative investment consulting for to invest sustainable like green bonds.