The Outlook for Renewable Energy Capital Allocation

Synopsis

According to BloombergNEF, Europe’s transition to clean energy will require $5.7 trillion in investment and financing with $3.8 trillion in investment for wind and solar projects by 2050. The European Investment Bank estimates to reach Net Zero by 2050, this would require current annual investments in clean energy to triple. We start the summit with an outlook of capital allocation and investment appetite for renewables.

• How much capital is flowing into European renewables and how does this compare by historical standards?
• In the current capital markets, how competitive is infrastructure in comparison to private credit, private equity, bond and stocks? Within infrastructure, how does solar compare?
• The GP perspective: how has the capital raising environment changed? Are LPs as hungry to commit to funds? How are traditional insurance and pension fund LPs responding to this higher interest rate environment?
• Power prices, rates and inflation are subject to record variance – how is this impacting valuations and investor returns?
• The spread between equity and debt returns has narrowed – what are the consequences for projects, developers and IPPs?
• How can renewable energy companies innovate and adapt to current market conditions? How are capital raising strategies evolving? Where are the opportunities?