ENERGY
CO M M U N I T Y I N V E S T M E N T | M AT T H E W C L AY TO N
There is a significant need for investors in building the energy sector since the level of clean energy is approximately 4-10% of the energy demand in Europe.
• Join forces and build the sector together. Financiers and developers need to find each other in long term relationships with long term commitments. It is key for investors to look at the broader picture and enter into commitments beyond governmental programs to build the sector for the long term and show resilience in the short term when programs are adjusted. • And last but not least, let go of the notion that return requirements are predominantly financial return driven, whereas the return requirements also include impact driven returns: such as the amount of avoided burnt fossil fuels, optimisation of energy mix to safeguard long term stable energy supply and increased clean energy generating capacity.
Investment opportunities
Investing in energy is not only a matter of financial return but also a matter of safeguarding stability of energy supplies and contributing to a more stable economic development. There is a significant need for investors in | 70 | environmentmagazine.co.uk
building the energy sector since the level of clean energy is approximately 4-10% of the energy demand in Europe. Building the sector to a desired level of sustainability still requires new money flowing into funds and investment opportunities. Also, more countries are seeking feasible solutions for their energy requirements and are adding renewable energy as an additional source of energy. Governments keep setting targets for renewable energy production for 2020 and beyond. This will require consistent investment schemes in the coming years. At the same time, European governments have scaled back subsidies and support schemes. This is mainly a result of an ongoing decrease in the amount of investment capital needed per MWh produced for renewable energy projects such as solar PV and wind energy. Renewable energy projects can be realised at lower costs than in the past, bringing about the justification for modifying stimulus programs. Tightening national budgets force policymakers to