Copying and distributing are prohibited without permission of the publisher
Confidence in clean energy investment rises
29 October 2013
Improved fundamentals and innovation in sustainable technology and clean energy sector
Investors are feeling increasingly confident about energy technologies and sustainable investments, research firm Edison Group has found.
The firm said investor appetite was driven by improved fundamentals and increasingly innovative investment approaches.
The report, which examined energy and resource innovation fund Leaf Clean Energy, found that there had been growth in the energy market – it noted that the Wilderhill Clean Energy Index, which tracks publicly-traded energy stocks, had risen 56% year-to-date, while there had also been an increase in the aggregate deal value of public offerings this year.
Bran Keogh, executive director of Leaf, said: “Despite the challenging economic climate, there are still profit making opportunities in energy and resource companies, as long as the right investment strategy is adopted.
“The key to success is targeting those areas where technology provides a clear value proposition to customers without the need for government incentives.”
The report said there had been “a resurgence” in energy stocks over the past year, with several notable energy public offerings in the last quarter, although private transactions remain flat for the year-to-date versus 2012.
Leaf said renewable energy sector investments had been sluggish since 2007, but the lag between private and public markets may indicate the potential for private investments to catch up.
Keogh added: “As interest in the energy sector gathers pace, the key to growth for emerging companies is more than just capital, it’s about combining key expertise and hands-on engagement.
“The best funds are partnering with management teams, creating new opportunities, and de-risking the business. It is these engaged investors who have been able to raise the probability of success.”