Antinuclear

Australian news, and some related international items

Investors are finding renewable energy safe and attractive

Munich Re, the world’s biggest reinsurer, has already said it will lift its investments in wind farms and solar plants nearly 10-fold this year to about €2.5 billion to help boost its investment returns. Such installations are offering 7-8 per cent annua returns, fixed over a 20-25 year period. That is proving irresistible in the current market environment. Allianz has so far invested in 31 wind farms and solar plants. Munich Re last month bought four photovoltaic plants in Italy.

GREEN DEALS: Investors seek green shelter, Climate Spectator Giles Parkinson and Sophie Vorrath, 9 Aug 11, Over the last few months, some of the world’s biggest insurers and managers of money – Allianz, Munich Re and Axa – have announced that they will be diverting sizeable amounts of funds into clean energy investments. Frustrated by the low yields in bond markets and the extreme volatility in equities, the world’s biggest risk assessors and funds managers are discovering that wind farms and solar plants with 25-year contracts for their power offtake are looking like solid and attractive investments.

Allianz, the biggest insurer in Europe, said this week that it aims to invest more money in wind farms and solar plants in the second half to help boost investment returns. “Renewable energy investments have the advantage that they offer relatively good risk-adjusted returns, a long duration, and that they lack correlation with capital markets,” David Jones, the head of specialised investments unit, told Bloomberg in an interview. “We have invested more than 1 billion euros ($1.4 billion) over the past five years in renewable energy. That’s double what we had anticipated earlier.”

Munich Re, the world’s biggest reinsurer, has already said it will lift its investments in wind farms and solar plants nearly 10-fold this year to about €2.5 billion to help boost its investment returns. Such installations are offering 7-8 per cent annua returns, fixed over a 20-25 year period. That is proving irresistible in the current market environment. Allianz has so far invested in 31 wind farms and solar plants. Munich Re last month bought four photovoltaic plants in Italy.

Private equity has also been attracted to the area….http://www.climatespectator.com.au/commentary/green-deals-investors-seek-green-shelter

August 11, 2011 - Posted by | Uncategorized

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