Publications are no longer accredited as of 21 September 2023.

Intelligent Partnership is pleased to publish an in-depth sector report on Energy and Renewables. This is part of the Alternative Investment Report series which are accredited by the CII and IFP for CPD purposes.

The report comprises of a detailed investment case for energy, demand and supply, investment considerations and potential in the sector.

Alongside this there is a detailed review of the retail investment opportunities in the sector, including a summary of the investment potential and future outlook for renewable energy. The alternative investment register lists all of the investments that are currently available to retail investors. The register includes 10 directly held investments, 7 investments with a corporate element, 24 collective investment schemes (CIS), 4 venture capital trusts (VCTs) and 41 enterprise investment schemes (EIS).

An Overview of Energy and Renewables

Energy is one of the largest and most established global industries and the sector has long been favoured by investors as a classic defensive investment. Oil and gas majors have access to inflation proofed revenue streams and sell a product that is essential for modern life.

Although things are changing, as the easily accessed oil and gas runs out, extraction becomes more dangerous and expensive and any mistakes can impact a company’s share price dramatically, the BP Deepwater Horizon disaster being the most obvious example of this. Concerns over peak oil and the environmental damage fossil fuels do are also changing the outlook for the energy industry.

One area of rapid change and growth is renewable (or clean) energy. The IEA (International Energy Agency) have forecast that renewables will be the world’s second-largest energy source as soon as 2018 and competitive opportunities for renewables are emerging across traditional and new markets.

Investors and their advisers should consider how investing in energy can help meet their investment objectives. Whereas previously investing in renewables might have been perceived as either a high risk niche investment or as an ethical investment where some level of return is sacrificed in order to put capital towards a good cause, today there are sensible investment opportunities in renewables that can fulfil a number of investment objectives: diversification, inflation hedging, securing long term income and achieving market level returns.

The report sets out the macro case for investing in energy and discusses both traditional energy investment strategies, more speculative ideas and how to invest in clean energy. There is a key focus on the UK, looking at the complexity of pricing energy production and how subsidies influence the market. Finally, the investment potential section and investment register should give advisers a comprehensive overview of the products that are out there for their clients, including more esoteric and non-mainstream products that are not widely covered elsewhere.

Contents

• Investment Case
• Market Update
• Environmental Concerns
• The Difficulties of Pricing Energy
• Global Investment
• Recent Investment
• Investment Potential
• Retail Investment Activity
• Regional Spread
• Investment Register

Why is the Energy and Renewables Report Relevant?

This report is aimed at advisors and those that are involved in or have clients that are interested in investing in the sector, however the content has a broader appeal to anyone with a commercial, vested or general interest in this new and rapidly changing sector. This report will provide the reader with an understanding of the global energy sector with a specific focus on renewable energy investment.

By understanding the drivers behind the energy sector, developments in the market, the investment case and the opportunities that are out there, advisers are better placed to help their clients – particularly if they want to engage clients with environmentally friendly investments that have a measurable social impact.

The Alternative Investment Register lists all of the 86 energy investments (renewable and conventional) that we have been able to collect data for. This register includes directly held, investments with a corporate element, collective investment schemes (CIS), enterprise investment schemes (EIS) and venture capital trusts (VCT).

Registered subscribers of Intelligent Partnership can access a complimentary copy of the report here and claim CPD towards their member scheme; other interested parties can purchase a copy of our report all by clicking on the following button:

We hope you enjoying reading our report on Energy and Renewables and as always we welcome your comments and feedback.