Growing interest in the renewable energy asset class through covid-19
By Andrea Voigt, Area Manager Italy and PPA-Expert, aream Group
When stock markets tumble and interest rates fall, investors increasingly want crisis-proof investments. Renewables do not correlate with other asset classes and deliver constant distributions even in times of crisis.
Through long-term power purchase agreements, renewable energies are now becoming particularly attractive for investors because they offer the advantage of being independent of market volatility and political support.
The stable, highly predictable long-term cash flows offer an attractive risk-return profile. The investments are payout-oriented (5 - 6 percent) and have a low risk rating for infrastructure (30 percent) due to the assessment of the regulators.