The Trillion Fund has recently revealed estimates which say £1.3 billion has been invested in renewable energy infrastructure in 2013. Helped on by huge investors and sponsorship from the retail sector, £1 billion was raised through the UK stock market alone. Surely this a good sign that people are trying to push the future of energy in positive direction?
Renewable energy has become somewhat of a preferred investment for many looking to place their money in stocks and bonds, so much so that the only sector currently attracting more investors is the property sector. It’s looking good for the investors who have enjoyed returns of up to 9% in 2013, but what has it meant for the industry itself? The renewable energy sector is obviously gaining continued support from the Government and, although popular with some and not with others, it has been relatively consistent over the past few years to the point where renewable energy targets (such as the one in 2020 to get the UK’s energy sourcing to at least 20% renewable) are actually within reach. Nevertheless, the energy sector will no doubt depend on smaller investors and the stock market as we move into 2014 in order to reach its full potential and soar, and with so much focus on the research and development of renewable energy techniques at the moment, there’s no reason it can’t.
The Trillion Fund carried out research which found that community funded schemes are increasing in popularity, a trend which has continued nicely from 2012 with almost £7 million raised through shares alone. So clearly, investors are an integral part of the future of renewable energy production and perhaps the sector could do even more to attract more money. With recent Government moves to scrap the green levies (or at least slow them down considerably), it is important that some focus remains on the independent pursuit of renewable technology. Trillion predicts that, while funding may slow down for onshore and offshore wind farms as some subsidy decreases take effect, they are expecting a higher than usual investment in technologies such as biomass and anaerobic digestion.
Julia Groves, the managing director of the Trillion Fund said, “The sector may depend on small investors as we go into 2014 and beyond for growth, and with the criteria from renewables looking so attractive for investors looking for uncorrelated, steady income investments, there is no reason why retail investors cannot provide this”. It seems the future for renewable energy is a little brighter than we perhaps thought.