Staying committed to renewables makes investment sense
Despite the massive economic downfall as a result of the Covid-19 pandemic and lockdown, there remains strong demand for renewable energy assets, suggesting the sector will not suffer as it did after the 2008 recession
The idea of a green economic recovery after Covid-19 is gaining increasing interest
GOOD NEWS
The renewables sector is showing much more resilience than it did during the economic crisis of ten years ago. Renewable energy funds are performing better than the wider market during the Covid-19 crisis
BAD NEWS
Life is likely to get tougher for new project development as supply chain disruption make investors more likely to favour operational facilities and projects with revenue certainty, such as those in markets with government guaranteed power purchase prices
KEY QUOTE
The big question is the behaviour of multilateral finance agencies, such as the World Bank, and the role of other development finance institutions in providing risk mitigation tools to investors in renewables ...
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