Fresh research from Renewable Energy Waste Solutions (REWS), a new renewable energy company, reveals 71% of institutional investors and IFAs expect the amount invested in renewables to increase over the next three years. Some 17% anticipate the value invested during this time will ‘increase dramatically’, and only 8% anticipate a decline here.
Over the longer term, exposure to renewables from investors will be even stronger. Between now and 2022, 75% of investors interviewed expect the amount invested to increase, with 23% anticipating a dramatic rise.
When asked to pick the main reason why they expect investors to increase their exposure to renewables, 44% said the political and social environment is becoming even more supportive of the sector. This was followed by 27% who said as an asset class renewables has low correlation with other investments. Some 13% said it was because they have an increasingly strong and proven track record as an investment, and 12% said it was because they offer attractive returns in the current environment.
Another attractive feature of renewables is that 62% of investors expect renewable generation costs to fall over the next three years.
William McClintock, Chairman REWS said: “Investors are becoming more aware of the growing opportunities in the renewables sector. As the industry builds on its already impressive track record for providing steady and strong returns to investors, its attractiveness as an asset class will only increase. Furthermore, asset owners are becoming increasingly sophisticated and looking for ways to diversify their portfolios and renewables offers them this.”