INVSTR INSIGHT: ALTERNATIVE ENERGY
Alternative energy sources are rapidly turning into big business opportunities as governments look for more sustainable ways to meet our ever growing power needs. Join Lea Jakobiak as she investigates this powerful market.
BILL BLAIN (Strategist, MINT Partners): The energy sector is one of the widest areas of the investment markets. There are really so many different areas to focus on.
MATTHEW BRYZA (Investor in new energy): My guess is we’re not gonna see oil ever again near $140 dollars per barrel again because of technology and because of renewable energy which is allowing us to generate energy let’s say electricity that can substitute for oil and natural gas very cheaply in a way that’s finally competitive with oil and gas.
The main types of new energy of tidal, bio, wind, geothermal and of course solar.
MARKUS SVENSSON (Solar Energy Expert): We have an increasing market all over Europe, all over the world. I will use Sweden as an example where we on the 5th year going now have doubled the amount of installations. It generates more work, it generates new companies, new ventures, new ideas.
This chart shows how rapid global energy consumption is increasing meaning there’s a growing demand for energy.
LEA JAKOBIAK (Reporter, invstr): At the moment though, new energy still has its issues as a reliable source of energy and thus as an investment.
BILL BLAIN (Strategist, MINT Partners): If the wind isn’t blowing they aren’t producing and that’s really the same problem in a different way that we have with the other big renewable source which we call solar energy. When the sun ain’t shining they ain’t generating power.
MARKUS SVENSSON (Solar Energy Expert): For investors in solar energy it’s very different across the world. Some countries have fines for installing renewable energy believe it or not some countries have incentives that are then removed and hinder the market. For investors it’s very difficult to know if they’re invested money will generate a yield that they have signed on the dotted line for. Until the politicians and the EU for example start realizing that they can’t be vague in what you can earn from renewable energy, investors are not going to turn heavily on to it.
And there are still issue when it comes to storing new energy
BILL BLAIN (Strategist, MINT Partners): Somebody is going to make an enormous amount of money when they develop a really efficient storage system for electricity.
JOE WARREN (MD, Powervault): The main challenge with energy storage is that it has been quite expensive to store energy you know in a cost-effective way. Recently the cost of energy storage has come down. Now it’s starting to become economic for people to use energy storage and to reduce their electricity bills.
LEA JAKOBIAK (Reporter, invstr): Now if you’d like to get involved here’s how.
BILL BLAIN (Strategist, MINT Partners): As an equity investor you could invest directly in building solar parks or wind farms. The key thing there is how are you going to get paid for your investment. If you look on crowdfunding websites for example Crowdcube there have been many companies including our own who’ve been raising money on crowdcube with new innovative clean energy technology products and they’re certainly an appetite for interesting clean energy products from investors whether they’re retail investors, angel investors, or venture capital investors.
LEA JAKOBIAK (Reporter, invstr): If you would like to learn more about energy from an investment point of view, remember that you can do that on invstr.
Want to learn more about the markets and how to become a better investor?
Download the Invstr App now.