Investment in renewable infrastructure set to grow

61% of institutional investors are planning to invest more in renewable infrastructure over the next three years, according to research from alternative assets manager Aquila Capital.

For 48% of investors, the most common reason for investing in renewables is diversification, ahead of long-term cash flows and portfolio returns. Only 22% gave environmental factors as the primary driver for investing. 59% of investors have positive, or very positive, views of renewable infrastructure. Their biggest concerns are investment volume and regulatory hurdles, ahead of manager experience and track record.

In terms of renewable technology, thermal, geothermal and biomass are the most popular sectors, ahead of hydropower, offshore wind and solar. Aquila Group CEO, Roman Rossienbroich, said: “The survey shows that investors’ appetite for renewable infrastructure as a way to generate yield and improve portfolio returns is continuing to go from strength to strength.” He added that investors are now building more sophisticated portfolios, with exposure to a range of subsectors within renewable energy.