Chart of the Week: Extending renewables footprint

While energy’s domination continues, we should further count the opportunities available in renewable sector.

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More and more GPs had been in favor of renewable sector as at 2013, with 20 closed funds quoted renewables under their investment scope totaling over $16 billion in 2013, compared with $10.7 billion raised by 11 renewable funds in 2012. Total capital raised for renewable energy increased 15.3 percent in 2013. Though only half a billion has been raised for the sector in Q1 and Q2 2014, we can see more capital are coming from funds in market. 81 out of 202 funds in market aim renewable assets in their investment scope, targeting $42 billion in total, and 49 of the renewable funds in market have already held an interim close, raising 9.5 billion so far.

Some examples are quoted here. Recently, Zouk Capital has beaten a €200m target for its second renewable energy vehicle, Renewable Energy & Environmental Infrastructure Fund II (REEIF II) which will cover markets in Europe such as waste-to-energy, geothermal and biomass; And the Asian Development Bank (ADB), Orix Corporation and Robeco Institutional Asset Management have launched a $1 billion joint venture, Asia Climate Partners (ACP) to invest in renewable energy, clean technology, resource efficiency and other environment-friendly initiatives. For funds in market, Copenhagen Infrastructure Partners (CIP) expects to reach a first close on its second fund before Q4 2014. The fund, targeting a first close of between DKK8 billion and DKK10 billion and a final close on DKK12 billion, will focus on renewable energy and regulated infrastructure assets across Europe and North America. Money has been scheduled for renewable projects from the private sector and it is poised to continue.