Renewable Energy

Currently, the most common investment offerings in the renewable energy sector are solar, wind, hydro, geothermal energy and biofuels. The returns in these sub-sectors are often related to factors such as government incentive programs and subsidies. In countries where the power industry is less competitive, power companies often purchase energy from these renewable energy producers at favourable rates. On the other hand, in countries with intense industry competitions, such as the United States, renewable energy players often face stiff price competition, which leads directly to lower returns for investors. Aside from the industry’s competitive landscape, governments often extend favourable loans and grants to support the R&D and construction of these renewable energy projects. Our analysts provide comprehensive insights into the government policy towards the conventional renewable industry and the competitive structure of the industry in different regions.

Besides government policy and competitive structure of the industry, the geographical location of each project also plays a big role in determining the risks and returns for investors. Investors are often introduced to new and unfamiliar risk factors such as hydrology risk (risk associated with hydrologic cycles such as drought, landslide and flood) that are specific to the project and its location. We identify and quantify these risk factors to support investors in their own assessment of a project’s risk and return.