Solar power plants, Wind farms or individual portfolios
- 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 Grid Parity (Price Solar power = Conventional)
Why Photovoltaic power stations are 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 – stable and predictable revenue cash flows – with solar plants in use ∅ 5% p.a. or projects ∅ 12% p.a.
- 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 and safe advanced refinancing techniques like – “pay-as-you-go”
Wind farms – Seasonal diversification of Solar plants
- Wind plants produce the most electricity during the winter months.
An ideal complement to solar plants.
- With around half a million wind plants worldwide, the technology is well matured and scalable.
- About 99% of the land area for wind plants can continue to be used as for agriculture or solar plants (hybrid plants)
- Disadvantage are irregular winds, which can be compensated with hydroelectric power plants or solar plants for example.
Sustainable Green- and Brownfieldmix – Renewable Energy and Infrastructure
- 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- Massive government debt, out of date infrastructure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
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. Global Grid Parity turning point reached by around 2030. (Source: McKinsey, Our Insights, Global Energy Perspective 2019).
To avoid project and currency risks, we recommend working with our professional partners for like green Bonds. They are equipped with their own in-house research and specialized manager selection team. 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. Why Apple and Google are going solar plants (BBC-Future)
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 and 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.