Interest in low risk, stable yield renewable energy projects remains strong—market participants

first_img FacebookTwitterLinkedInEmailPrint分享Wall Street Journal ($):Wind and solar farms are attracting interest from investors hungry for low-risk, stable-yield opportunities at a time of extraordinary market volatility.That interest is a boon for renewable projects, and could give them a financial boost in coming months and years. However, developers could face challenges in getting additional new projects financed and built amid the turmoil created by the new coronavirus.It might seem an odd time for a renewable-energy uptick, given the economic slowdown and a historic crash in oil prices that is making fossil fuels cheap. But wind and solar farms experienced a similar surge after the 2008 financial crisis, when investors seized on the projects as safe-harbor investments with yields in the mid-single-digit percentages.Wind and solar farms have contracts to sell their electrical output to utilities and companies with good credit ratings for a decade or longer, making their returns stable and relatively low risk.Corporations contracted for 46% of the 20.2 gigawatts of renewable energy added to the U.S. grid last year, according to the Renewable Energy Buyers Alliance, a group that represents corporate purchasers. The largest buyers last year were Facebook Inc., Alphabet Inc. unit Google and AT&T Inc. Corporations have been contracting for renewable energy because prices are low and because many have made pledges to lower their carbon output. “No one has yet indicated that they intend to slow their purchase,” said Miranda Ballentine, the group’s CEO.“Renewable-power generation is largely uncorrelated to oil and natural-gas markets, which further strengthen their overall appeal, and may well be one of the first assets classes to unfreeze,” said Keith Derman, co-head of Ares Infrastructure and Power at Ares Management Corp.[Russell Gold]More ($): Wind, solar farms are seen as havens in coronavirus storm Interest in low risk, stable yield renewable energy projects remains strong—market participantslast_img

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