The renewable energy sector has been gaining the attention of the investment community in recent years. Following the trend, players both big and small are investing in renewable energy by buying stakes in existing companies or by starting their own businesses in the sector. According to a recent report by Private Equity International (‘The 2016 Investing in Energy Special’), funds are picking renewable energy investments because the sector is less crowded than the commodity market and exhibits less correlation with macro events.
Why Is Investing in Renewable Energy Unattractive?
Renewables are attractive investments for private equity (PE) funds when it comes to emerging markets, who areleading the industry’s trends. Recent economic developments have pushed down the costs in developing economies where, at the same time, demand has skyrocketed. Renewables also provide sustainable and long-term returns.
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