• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 13 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 3 hours "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 7 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 2 days Did China cherry-pick the factors that affected the economic slow-down?
  • 7 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 10 hours Are you aware of Oil Price short videos on our energy topics?
  • 15 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 18 hours NordStream2
  • 4 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 411 days Class Act: Bet You've Never Seen A President Do This.
  • 4 days Forecasts for Natural Gas
  • 4 days Australia sues Neoen for lack of power from its Tesla battery
  • 4 days Nord Stream - US/German consultations
Mark Nicholls

Mark Nicholls

Mark is a writer for Environmental Finance. Environmental Finance is the leading global publication covering the ever-increasing impact of environmental issues on the lending, insurance,…

More Info

Premium Content

Investors Turn to Renewables

Around half of investors in BNP Paribas’ Clean Energy Fund – which closed this week at €427 million ($568 million) – are making their first investments in renewables, according to the head of the French bank’s clean energy investing arm.

“Investors, particularly in the insurance sector, have been looking at [renewables] more closely over the last 12 months,” Joost Bergsma, CEO of BNP Paribas Clean Energy Partners told Environmental Finance. “It’s good news for people working in environmental finance that there’s still appetite for the sector.”

The fund closed above target – BNP Paribas had been hoping to raise between €300 million and €400 million into the fund – making it one of the largest European renewable energy infrastructure funds.

 The renewables sector has been in the doldrums amid poor performance this year by clean energy stocks, uncertainty about support in the US for renewables and concerns that governments in Europe, particularly Spain, were about to retroactively reduce renewable energy tariffs.

However, Bergsma said that investors were attracted by the fund’s high levels of cash yields and relatively low levels of risk, focused as it is on investing in projects using proven technologies in mature and “transparent” markets in Europe.

“Investors increasingly recognise that renewable energy infrastructure is an important part of the economy and therefore it should be part of their portfolios,” he said.

Investors include pension funds, insurance companies and local authorities, with two-thirds from the Netherlands, Belgium, Germany, UK and Sweden, and the remainder from Japan and elsewhere in Asia. BNP did market the fund to US investors, but Bergsma said a combination of their preference for dollar-denominated investments and concerns about the stability of European renewables regulation proved a deterent.

 “Clearly, US investors are a bit more sceptical about something state-supported,” he said. “And they’re further afield – they’re going to be more cautious than, for example, a French investor” about European renewable energy regimes.

Indications earlier this year that Spain was set to reverse its previously attractive solar feed-in tariffs, including for operational projects, “did not help” in marketing the fund. “But the sector is more mature than three or four years ago … Investors recognise that even if one government was to renege on its commitments, it doesn’t hit the whole sector,” he added.

The fund invests in construction and operational clean energy infrastructure assets in onshore wind, solar photovoltaic, biomass and small-scale hydro power, and has made six investments already, in Italian solar power and French and Irish wind farms. It typically invests €20 million-40 million in equity per investment, leveraged with €60 million-80 million in project financing.

The fund has a 10-year life and is expected to return 15% per annum to investors.

By. Mark Nicholls

Source: Environmental Finance


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Anonymous on December 10 2010 said:
    The only way that fund can return 15 percent per annum to investors is that subsidies to these clean energies are maintained or increased. Please note what I said: THE ONLY WAY. The energy picture that I mention in my lectures and my new book has more nuclear and a lot more renewables and alternatives (i.e. clean energy assets)- but the right renewables and alternatives. Maybe the people running this fund are geniuses and will invest in these 'RIGHT' clean assets, but if so nobody will be more surprised than my good self. Of course, without more nuclear you can forget about it.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News