Solar power plants are a reliable and safe investment vehicle, providing returns exceeding those of traditional low risk financial products
Institutional investors are increasingly seeking tangible asset classes which can deliver steady, preferably inflation-adjusted income streams, with long-term horizons and low correlations to the returns of other investments. ENVIRIA’s solar energy projects tick all these boxes – and more.
Investments in clean energy are gaining traction with investors interested in real asset-related financial products that have a positive environmental impact. Solar energy provides stable and predictable cash flows with relatively low volatility, making it an attractive asset class. Yet when it comes to committing institutional capital, hesitation is both evident and understandable. Numerous factors come into play challenging participation in green investments, such as lack of expertise, regulatory and policy issues risks (e.g. tariff fees and ownership rights), risk-return imbalances, as well as construction, technology and operational risks to name a few. This status quo excludes entire segments from participating in the energy transition, complying with ever-evolving sustainability regulations and reaping the benefits from such investments (green, economic, taxation, etc.).
With public financing at its limits, and deleveraging and new financial regulations taking their toll on the provision of long-term financing from the banking sector, institutional finance becomes imperative to bridge the investment gap and make the clean energy transition a success. The need for innovative renewable energy investment vehicles is gathering momentum. ENVIRIA brings together decentralized energy projects, energy off-takers, and institutional capital with the aim to facilitate the clean energy transition.
Game changing concepts delivering bankable long-term investment opportunities
Renewable energy investment value chain
Solar investments are typically backed by real assets. These offer predictable, long-term, inflation-linked revenues supported by power purchase agreements. ENVIRIA has excellent market knowledge and comprehensive investment experience in the solar sector. We structure dedicated investment vehicles along the renewable energy investment value chain, providing equity and bond solutions at various stages of the process. This way we facilitate long-term investments that adhere to the distinct nature of diverse investor profiles, such as private equity funds, infrastructure funds, pension funds, insurance companies, family offices and corporations.
Solar is a distinct and growing element of mainstream asset allocation. ENVIRIA makes this asset class available through smart matches comprising space, turnkey projects and capital. We offer share as well as asset deals for operational assets and portfolios whilst also offering bond and equity solutions on an SPV-level. We bundle smaller projects into generation portfolios subsequently granting access to solar projects that are often outside of the ticket size of certain investor types.
Our approach allows entities from diverse investment backgrounds to participate in decentralized energy models:
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ENVIRIA takes care of the process end-to-end, developing the model best-fit to serve specific needs while ensuring particularly high yield forecasts and good returns, regulatory and taxation compliance and maximum environmental and economic benefits. In turn, we hand over projects ready for construction or an already completed turnkey system, and we manage them into the future with the aim to optimize returns.
- ENVIRIA is your single point of contact - we liaise with all stakeholders that need to be involved in your project
- Financial structuring
- Sector-specific investment solutions and concepts
- Reliable project pipeline
- We take on solar projects in all stages of development
- Commercial and technical asset management
- Inhouse EPC expertise guaranteeing quality and prompt delivery of each project - with own fitters and engineers
- Project lifespan of minimum 20 years, with manufacturer warranties, long-term contracts with power purchasers and government support
- Decreasing costs of clean energy technologies
- Premium product quality from reputable partners in our ecosystem
RISK MITIGATION AND RETURNS
- “Real” / tangible assets
- Steady and predictable cash-flows backed by long-term contracts with investment grade counterparties
- Hedging against potential regulatory obstacles and market failures
- Hedging against securitization
- Scalable efficiencies
- Inflation protection (e.g. with indexed tariffs)
- Upside from rising electricity prices
- Fully ESG compliant
- Improvement of environmental footprint
- Reduction of CO2 emissions
- Regulatory compliance and safeguard against forthcoming regulations
- Positive impact on brand image
Creating attractive opportunities for capital providers interested in infrastructure investments, we work with a range of institutional investors and lenders to raise the capital required for the construction and long-term investment in solar power plants that are developed to international project finance standards. The financial partners in our renewable ecosystem have a strong track record in renewable energy project investing.
We have a solid pipeline of forthcoming projects at various stages!
Reach out if you want to participate in our ecosystem by providing equity and senior debt for green infrastructure projects. We are always interested IN project and bridge financing, constantly expanding our network also beyond conventional financing partners.