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Infrastructure

"Each of these technologies - sun, wind and water - has diversifying effects."

name, Head Investment Management | Energy & Infrastructure EMEA

Key Facts

Infrastructure in numbers

  • Transaction volume as of 31 December 2015
    2.8
    bn EUR
  • Number of transactions as of 31 December 2015
    40
Investment opportunities

Renewable energies such as solar, wind and hydropower offer investors an attractive risk/return profile, a low level of correlation with traditional asset classes such as equities and bonds and long-term stable cash flows.

With insurance companies and pension funds focused on liability management, this combination of benefits makes renewable energy a highly attractive asset class. In some cases, renewable energy also benefits from favourable political conditions where their use is actively promoted in a bid to reduce dependence on fossil fuels. The supply of fossil fuels can be expected to reach its peak in coming decades and then decline. By then, energy demand will probably exceed the supply that can be met by fossil sources alone. The so-called ESG (environmental, social, governmental) factor is playing an increasingly important role in supporting the investment case for renewable energy, which holds a clear advantage over fossil fuels in terms of sustainability.

Insight

Manager Commentary

Investment criteria for hydropower investment

With installed capacity of more than 1,000 gigawatt (GW), a surge of investment is expected to take capacity to 1,680 …

20 June 2013 | Hydropower is the most widely used renewable energy source in the world, according to the World Energy …

Manager Commentary

The investment case for photovoltaics continues to be strong

The fact that future energy supplies cannot be met without regenerative energy sources has led many countries to …

22 April 2013 | Throughout the world, the expansion of renewable energies continues to gather pace, a trend that is …