Investment in renewable energies: potential or powder keg?

But a real consensus is still not in sight: while advocates point to the positive effects of renewable energies on the environment, economy and society critical voices due to their unreliability, additional environmental impact or high costs.

So what’s really behind the hype about renewable energy? What are the actual opportunities and risks? much-discussed asset class?

Between trend and tradition

The knowledge of using wind, water and sun as an energy source is almost as old as humanity itself – so whether renewable energies can actually be treated as a “trend” topic is probably one Question of perspective.

But in fact, the use of wind power – as the number one renewable energy source – has only increased noticeably again since the beginning of the 21st century. Sustainable technologies reached their first peak around 10 years ago: Electricity production from renewable energies was heavily promoted by the state with record high feed-in tariffs. More and more companies tried to gain a foothold in the booming business.

The financial market also reacted to this: The high funding amounts attracted numerous providers and investors who hoped to make attractive profits from investments in renewable energy systems.

But as quickly as it went uphill, it also went downhill again. The solar market in particular quickly came to grief Boundaries, after electricity prices for consumers rose significantly as a result of the solar system boom. As a result, government remuneration was drastically reduced in the short term – which caused noticeable losses in the solar market: numerous projects were canceled, companies went bankrupt, investors lost their money.

In addition, there was the collapse of the Spanish solar market: Here, too, the construction of solar systems increased massively within a very short period of time and caused the state subsidy program to fail. Anyone who wanted to take advantage of the Spanish sun as an operator, provider or investor was left with bad cards after this turnaround.

On the ascending branch

But the next upturn was not long in coming. The markets for renewable energies quickly recovered and soon reached a new level: Between 2011 and 2022 The market share of renewable energies in Germany rose from 20.4 to 48.3 percent. The “problem child” photovoltaics developed from 3.2 to 11.4 percent over the same period.

The statutory feed-in tariff was through the so-called Market premium replaced, which should encourage network operators to sell the electricity they generate directly on the market and thus provide greater relief to consumers.

However, for many investors, confidence in the market did not recover nearly as quickly. The fear that the renewable energy “bubble” would soon “burst” again is still a concern today Be careful on the financial market.

Renewable energies: Unlimited future potential

The signs now clearly point to success – and success long-term success. Renewable energies are no longer just a “trend” investment for quick profits thanks to high subsidies. The urgency of effective measures against climate change has finally gained a foothold in society, but also in politics and the economy. The expansion of renewable energies is an inevitable step on the way to a more sustainable way of life and economy.

At the same time, there is also greater awareness of the long-term potential of renewable energies on the financial market. Because: Where there is demand, supply follows. Many providers have learned from their initial mistakes and are now stepping up their game long-term, broadly diversified investments instead of risky individual investments.

And with the introduction of the ELTIF (European Long-Term Investment Fund), the EU brought the right instrument onto the market to enable private investors to make long-term investments in the European real economy – and thus specifically strengthen the renewable energy segment.

This shows what a sustainable investment product with attractive future and return opportunities* can look like Renewable energy fund klimaVest: Designed as an ELTIF, the impact fund from Commerz Real** offers private investors a long-term investment in over 40 European wind and solar power plants from Finland to southern Europe. With over a billion euros in fund assets, klimaVest is the largest ELTIF on the German market after only three years of existence – and shows how wind, sun & Co. are already responding today Society of tomorrow affect.

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