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How Energy Investors See Renewable Energy


While the institutional energy investors panel had a more conservative view than those who are predicting how energy storage will change in the future, they had a similar level of optimism as far as renewable technology goes.
 
Ignacio Ruiz, the head of investments strategy for the Americas for Cubico Sustainable Investments, remarked that renewable energy in the United States have gone from being worth almost nothing to having 220 GW in just 10 years.
 
Ruiz also said that the industry is expected to stand without the need for subsidies by 2025. The industry has been grown through private incentives and corporate goals. Ruiz believes the successful corporate procurements in the United States will occur in Europe in the near future.
 
The head of renewable power at HG Capital, Luigi Pettinicchio, said the large renewable energy projects are another sign the industry is maturing. Projects are bringing together up to 12 engineering companies and banks in order to support larger purchases, improving the quality of projects and capital requirements.
 
Pettinicchio says that new projects allow for investors to spend billions of dollars. These large projects are driving economies of scale, opening the door for new financing options like unlevered investments, and making direct investment in new projects more appealing to venture funds.
 
Investors are becoming more interested in the renewable sector, with investment firms learning as much as possible about the renewable industry. As risks around renewable energy projects fade and larger projects bring in larger investments, such projects are beginning to look more and more like infrastructure investments.
 
This will bring in potential investors who understand investing in infrastructure and traditional energy products. Vice president of Macquarie Capital Hamish Kidd said there is a prime opportunity for the construction industry to capitalize here because of how familiar it is with investing in infrastructure projects.
 
Pettinicchio was quick to caution forecasting the power markets, which has been warped recently, is the latest challenge for investors looking to invest in renewable energy.
 
Future Opportunities
With institutionalized investors becoming more comfortable investing in the renewable energy market, the door is opened for entrepreneurs to consider the future. Serial entrepreneurs from the Starting an Energy Venture panel shared their thoughts, advising attendees about the opportunities for innovation in clean-energy.
 
The area is great at keeping entrepreneurs on their toes, according the CEO and co-founder of Clearly Energy Veronique Bugnion. Bugnion believes that an entrepreneur is already behind the curve if they hear about a cool idea that’s already got a buzz about it.
 
With this said, it’s somewhat difficult for entrepreneurs to understand the specific opportunities that are ahead of them. New methods of financing renewable energy is affording an innovative approach into deploying renewable energy services such as solar power.
 
Energy storage allows for new methods for bolstering electricity services. In the end though, there are many opportunities for entrepreneurs thanks to this uncertain future. There’s plenty of noise in the industry and many problems for entrepreneurs to solve.
 
This could be applied to the entire industry, suggesting the future is bright for the renewable energy market.