Saturday, March 30, 2019

Financing Renewable Energy Projects

The world over, investors are always on the lookout for profitable avenues for investing which can give substantial returns within a reasonable period by taking acceptable amounts of risk. People would always need roads, bridges, transport or even housing, which is why infrastructure fundraising is one of the most popular avenues for raising capital.

Oil – A Story that will end someday

But we know that the one thing that still makes the world go round is oil. We live in a world which is unthinkable without oil. That is why so many companies are in the oil and gas sector, and we regularly see action in the oil mergers and acquisitions space. But this is a fairytale which will end sometime in the future. That end might still be several years away, but the movers and shakers of the world have already begun thinking about what can be done when that day finally arrives.

Renewable Energy – A Credible Alternative

One of the sustainable solutions for the time when we will finally run out of oil is to shift completely to renewable energy sources. There are several renewable energy sources that Mother Nature herself has provided us, like the sun, wind, tides, falling water etc. If we are able to harness these sources well, then we can completely do away for the need for oil, and therefore for oil & gas m&a as well. But then, the agencies or companies that go into renewable energy would need to have adequate funding as well. For an investor, what could be the advantages of financing renewable energy projects?

Why renewable energy finance?

The biggest benefit a company gets if it provides funding for renewable energy project is that this is the future of our world, so they needn’t worry about the sector dying away someday. We are hurtling at breakneck speed towards a world which will have no oil, so all of us will necessarily have to depend on renewable energy. Second, renewable energy is a very sustainable alternative. Unlike the huge mining operations for oil and gas, the harnessing of renewable energy sources does not play havoc with the fragile ecological balance of our world.

Finally, the chances of the investment in renewable energy going bust are negligible, so even financially, it makes good sense. Because of these reasons, several companies have been taking the help of companies like Kapok Capital to deploy financial resources into renewable energy companies.

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