As the world is experiencing a global transition from reliance on fossil fuels to renewable energy, investors should see an acceleration in green energy investments next year, according to research firm Evergreen Ratings.
The company’s founder and chief executive, Angela Ashton, said that it would be financial advisers who would increasingly be called upon to assess, and make recommendations on an expanding range of renewable energy focused investments as their clients would seek to participate in this exponentially growing industry sector.
“We are of the view that coal fired power stations in Australia will have difficulty arranging insurance beyond 2030, such is the pace of change. It’s a pace that is being driven by society - citizens, shareholders and industry generally - and not necessarily by government and regulation,” she said.
“In Australia, the public and industry were ahead of the legislators on same sex marriage and there is clear evidence that the same is true regarding concern about climate change and enthusiasm for a transition to renewable energy.”
According to the International Energy Association (IEA), renewables would contribute a staggering 95% of net increase into world energy grid through 2025 and total installed wind and solar PV capacity as on course to surpass natural gas in 2023 and coal in 2024, the firm said.
Following this, the IEA projected that 60% of the growth in renewables up to 2025 would be solar photo voltaic cells and 30% wind power.
“Despite this, many investors are not riding the renewable wave because of a combination of a lack of investments packaged for the retail investor and a lack of independent analysis of those products that do exist,” Ashton said.
“This is one of the reasons we formed Evergreen Ratings- to provide independent analysis of less-liquid and more complex investment opportunities.
“One of Evergreen Rating’s first assignments in the renewable field has been to assess the renewable energy investment offering from new entrant to the Australian market, the Octopus Group (OG), which has a 20-year track record in the UK specialising in this sector.”