The political support for new “clean” energy capacity is unwavering.
“Renewable energy is a dynamic investment field for both yield and value investors”
Industry and Market Background
Energy prices are increasing and over the next ten years or more, they are forecasted to increase further. Alternatives to fossil fuels will likely become even more attractive.
Renewable energy is a dynamic investment field for both yield and value investors and, despite its massive growth over the last decade in Europe and the US, it is still a continuously growing market sector, even more so in China and Japan. The volatility of the stock market, in combination with placement restrictions, is driving long-term money in search of other sources of business. Energy production is, to a great degree, not correlated to other asset classes.
The political support for new “clean” energy capacity is unwavering, and the regulatory situation has been stable in most markets and transparency is increasing. There is a substantial global need for low carbon energy production.
Geothermal is classed as ‘Green Energy’ and commands premium power prices due to its decarbonising impacts and clean operations. It is also preferred by governments and grid operators given provides ‘baseload energy’ – providing stable power to the grid – in contrast to fluctuating solar and wind power. Baseload energy is currently in high demand due to the decommissioning of coal plants, nuclear and other baseload power plants and thus, its critical importance for grid stability. This increased focus on the clean energy transition and security of supply were key outcomes of the recent COP26 Glasgow conference, and is now all the more urgent.
Cindrigo will continue to develop Waste-to-Energy projects, as originally planned in Ukraine, however, given the uncertainty in the country at present, plans for the proposed WtE project in Kyiv are currently suspended.
Every grid in the world needs more clean baseload power