March 22, 2021
Toby Bellingham, Portfolio Manager and Ganesh Suntharam, Chief Investment Officer at Redpoint Investment Management examine the investment case for renewable energy.
The energy sector is currently at the early stages of a major restructure from fossil fuels to clean energy. This evolution will continue for decades, supported by a globally unified effort to transition to the green economy by investing trillions of dollars into renewable power generation.
This structural change will transform the business models of established energy and utilities companies. Electricity generation will be compelled to transition away from fossil fuels and embrace clean energy infrastructure and its associated technologies.
The renewable and clean energy sector has seen numerous important developments over the last decade. These have transformed the sector from a highly speculative and experimental investment prospect to one which is more securely established. This now presents investors with an opportunity to participate in steady and stable returns with similar characteristics to those of other infrastructure sectors. Expectations for escalating multi-decade growth and development in the sector is expected to underpin the investment case for renewables as a valuable, long-term investment.