Wind energy is cheap. As such, it’s a good long-term investment for companies with the capital… such as insurance companies. A new analysis from PwC, European Power & Renewables Deals. Quarterly M&A outlook, finds that insurers and other financial bodies are increasingly looking to wind energy in Europe for secure, long-term investment.
“Insurers, infrastructure funds and other financial investment entities are becoming active bidders in sales of European power assets, particularly electricity and gas distribution network companies but, also increasingly, existing or ‘just operational’ windpower projects,” PwC Russia writes. “At a time of low interest rates and market investment uncertainty, such assets offer stable, long-term and predictable returns.”
PwC predicts that solar will start to fill this role and receive these investments to a much larger degree soon as well.
“Looking ahead, solar PV looks set to breakthrough and feature more prominently in renewables deal flow. The sector has been hit by subsidy cuts but, as subsidies are being cut, prices are actually falling more rapidly. This is enabling the sector to remain attractive as a source of predictable long-term returns in jurisdictions where investors can have confidence that any future changes will not be applied retrospectively.”
I'm the director of CleanTechnica, the most popular clean energy website in the world, and Planetsave, a leading green and science news site. I've been covering green news of various sorts since 2008, and I've been especially focused on solar energy, electric vehicles, bicycling, and wind energy for the past few years. You can also find my work on Scientific American, Reuters, Think Progress, GE's ecomagination site, several sites in the Important Media network, & many other places. To connect on some of your favorite social networks, go to zacharyshahan.com or click on some of the links below.