Global investment in renewable energy is strong, driven by a growing understanding by investors of the asset class and risks; and the greater availability of opportunities as the sector matures. However, challenges around asset performance and regulatory tinkering, whether through tax or subsidy changes, have damaged confidence in the sector. This has been a particular challenge in highly leveraged financing structures, which were common up to 2009.
Investors are growing in confidence and sophistication: They are evaluating regulatory arrangements, asset quality and financing structures in their appraisal of new opportunities. Furthermore, there are attractive opportunities to partner with utilities, who will continue to provide strong asset management roles to help ensure returns are consistent over asset life. The onus is also on Government and regulators to build confidence and trust to attract investors to Renewables, as to other infrastructure asset classes.
KPMG’s has advised on a wide range of landmark Renewables activities. We have a wealth of credentials and industry experts, which mean we can deliver in-depth advice across a wide range of advisory, assurance and tax services to drive value with our clients right across the spectrum of Renewables activities.