The recent Solar Millennium closure is just the latest in a number of high profile bankruptcies throughout the solar industry. Coupled with the reduction of feed in tariffs across Europe and the continuing uncertain economic conditions, one could have expected solar to not be a particularly good area for investment. The truth however is that solar is maturing fast and the closures are to be expected as part of a Darwinian consolidation process where only the best run companies survive, as module prices have decreased by 70% over the past 2 years. This has been good for projects and project developers and the FIT’s are being reduced as a result and to avoid unnecessary supernormal profits.
Institutional investors and financial asset owners, looking for stable form of investment for their portfolios, are increasingly looking to the solar industry to provide the long terms return they need. With market attention focused again on dividend investing, renewable and infrastructure assets find themselves in the spotlight. Solar assets’ uncorrelated performance provides pension funds and insurance companies with the much sought after means to diversify portfolio risk as well as generate compounded income.
April will see institutional investors, financial asset owners and project developers convene in Italy to discuss the latest financial trends and conditions. The meeting will, among others, discuss the risks posed by the solar industry, the future of government economic support and the key upcoming solar markets for future investment opportunities. Executives from Next Energy Captial, GIFI, Foresight Group, Santander, Impax New Energy Investors, Gestamp Solar, Bloomberg, Wise Energy and dozens more are planning to attend and speak.
“By gathering key decision makers from major investors and project developers alike, we look forward to a lively discussion” said Sarah Ross, Director of Solar Infrastructure Investment taking place .“As more investors look towards the solar industry, this conference will assess and identify opportunities for uncorrelated, income generating returns from the renewable infrastructure sector.”
Rapidly expanding Mexican solar industry
Investment opportunities in the solar space will also be high on the agenda at Solar Power Mexico, the only solar business focused solar conference in Mexico (15-16 May 2012, Mexico City).
Held as part of the Mexican International Renewable Energy Congress (MIREC), and sponsored by Siemens, Solar Power Mexico will feature over 30 expert speakers from SENER, CFE, CRE, Abengoa, Siliken, Enel Green Power, DelSol Systems, DesMex Solar and Granite Chief, among others. Dedicated sessions will cover the availability of government support, case studies of the first utility scale projects, investment opportunities and much more.
Until now, Mexico’s vast solar resource has remained exploited only at a domestic scale. However, as price parity of solar begins to be reached, coupled with poor European market conditions, Mexico is beginning to attract the attention of utility scale developers.
“It is well recognized that Mexico’s vast solar resource provides the country potential to become a global market leader” said Anna Watson, Director of Solar Power Mexico. “Whilst the government has enacted policies to facilitate development and is presently undertaking country wide solar mapping research, a key barrier is still considered to be lack of government tariffs to support large scale projects. Solar Power Mexico will unite key international players with government officials and investors to discuss the latest case studies and resolve how best to drive the industry forward”.
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