The world is undergoing a global redesign and rebuild of the way energy is generated, distributed and consumed. In addition, the emergence of new mega-trends such as the electrification of transportation and heating are sparking new economic growth opportunities.
Global investment in clean energy production, distribution and storage is set to rise sharply to follow the mega-trends and off-set the phasing out of fossil fuel plants to meet the COP 21 Paris goals. To meet such goals, the world will need to raise nearly one trillion dollars in new investment annually. Currently, it is only around $300bn (IEA) (BNEF).
Mainstream renewable energy technologies not only have become the cheapest source of power available but also the fastest technologies to install in order to ramp up new capacity. In developed markets, renewables are already competing head to head with other technologies without the need for government subsidies. Solar PV’s and Wind’s supply chains include the most reliable industrial groups worldwide. With falling battery storage costs, new business models are opening up for clean energy stable production as well as on and off-grid services throughout the world.
Private equity and structured finance solutions are permeating the global financing of clean energy expansion. However, much more action is needed and an increase in cross-border portfolios will necessitate a more sophisticated asset management approach and a talented team capable of delivering such excellent service and advice. This is the reason why we decided to launch New Sparta Asset Management Ltd.