A blog on financial investment on renewable energy projects

What are capital investments and capital budgeting? How does capital investment work? Can capital investment be related with solar projects? We look at all these questions in the presentation shared by Distributed Energy.    How does capital investment work? from DistributedEnergy

The pandemic conditions we have experienced in the past and continue to experience now has brought to light major global economic risks and financial vulnerabilities. This worldwide shock has changed the global energy markets and consequently, affected the future investments in the energy sector. But to recover from such conditions and nurture more resilient energy infrastructures, an increase in investments in this sector will play a vital role moving forward. Investing in energy gives you opportunities to shape the future while earning an income. There are several reasons that makes investments in this sector attractive: The energy market is the most valuable global market segment – valued at around $7 trillion. According to the International Energy Agency (IEA), global energy demand will grow by more than 30% by 2035. The energy market is so vast, as it encompasses a diverse array of market sectors i.e. oil, gas, coal, renewable energy, etc. Post Covid-19, it has become increasing a

  It goes without saying that clean energy is better for the planet, and humanity, than energy derived from fossil fuels. Marginalized communities will benefit from access to energy through off-grid systems, reduced greenhouse gas emissions and an overall improvement in the resiliency of our existing energy infrastructure. The world has a unique opportunity to accelerate clean energy deployments by putting renewable energy at the heart of the COVID-19 economic recovery plans. While there is great progress seen being made over the last decade, there is still room to do more and nations along with corporations have to make more ambitious clean energy commitments over the next decade. For example, according to the latest United Nations Environmental Program report on clean energy investment trends, nations have made commitments for 826GW of new non-hydro renewable power capacity by 2030, which will come at a cost of around $1 trillion. However, even these commitments fall short of wha

As we continue to see a rise in the range of global sustainability challenges and complex risks, investors are beginning to re-evaluate traditional portfolio approaches. Sustainable investing, often times also referred to as socially responsible investing, is the process of incorporating environmental, social and governance (ESG) factors into investment decisions. As the term ‘ESG’ suggests, its scope go well beyond environmental concerns alone. It also includes the following: •    Environmental: Climate risks, clean energy, addressing resource scarcity •    Social: Diversity, human rights, and cybersecurity •    Governance: Business ethics, transparency, and anti-corruption Individuals that typically invest in companies, organizations and funds with the purpose of generating measurable social and environmental impact alongside a financial return fall in the bracket of sustainable investing. What this kind of investment typically results in is a widespread impact across various

Capital Investment refers to money or assets which a company uses to achieve and further its business objective. Take for example when an individual or a financial institution makes an investment in a business. A sum of money is handed over as a loan or in return for a promise of repayment or a share of the profits down the road. In this sense, capital means cash. A company can seek capital investment from any sources like venture capital firms, angel investors, and traditional financial institutions. The capital is to be used to further achieve and develop its targets and ultimately, helps to increase the firms’ value. Looking at the various sectors for the last decade, renewable energy had shown a significant rise in its investment trends. The major portion of these investments is the capital for solar. Following pie-chart shows global renewable energy investments over the decade (2010-1019). Thus, it can be said that solar is a well-preferred choice for investing firms. Business

Long-term investments are financial instruments that you hold for more than a year. Most investors hold these investments for several years at a time, building them into portfolios with a specific strategy, such as  provident funds and long-term savings accounts. However, common long-term investments gain value slowly but predictably, making them better assets to hold over several years.  At Distributed Energy, we focus on long-term, private renewable energy investments . As an investor, you can benefit from automatic diversification, reduced minimums and dependable cash flows. One of the main concerns for any type of investing is market volatility. Volatility measures the degree to which prices change over time. Another way to think of volatility is in terms of price fluctuations. The greater and more frequently an investment's price deviates, the higher its volatility. Investments with high volatility have a high degree of risk because their prices are unstable. The a