COVID-19 impacts on low-carbon investments: The COVID-19 pandemic has disrupted many sectors across the UK, and investment in low-carbon infrastructure has paused in many markets. Daniel Atzori, Research Partner at Cornwall Insight, comments on the likely impacts of the COVID-19 crisis in low-carbon infrastructure finance and investor confidence.

 

“Despite the decrease in electricity prices due to a sharp drop in demand from industrial and commercial consumers, established energy infrastructure assets like wind and solar farms are expected to prove resilient in the current circumstances. In particular, owners and managers of operational renewable assets are likely to be relatively insulated from the downturn.

 

“However, investors are set to examine more meticulously the risk profile and performance of less mature assets, such as battery storage, whose revenue streams are not yet seen as always predictable.

 

“Corporate procurement of renewables from the top tier of companies – exemplified by global, financially robust tech firms – are expected to maintain their decarbonisation commitments, as the latter is based upon both ESG and economic drivers. However, smaller corporates may opt to postpone these decisions, given the uncertain macroeconomic landscape.

 

“Overall, since infrastructure assets are typically included in packages of economic stimulus, renewables such as wind and solar are likely to keep on being perceived as relatively safe investment propositions. The case is even stronger now because achieving net zero emissions by 2050 is enshrined in law.”

COVID-19 impacts on low-carbon investments – Post kindly provided by Cornwall insight

, ,
Previous Post
COVID-19 impacts on the TPI industry
Next Post
Planned solar farm to generate power for 3,000 homes

Related Posts

Planned solar farm to generate power for 3,000 homes

Planned solar farm to generate power for 3,000 homes : Leicestershire County Council has submitted plans to develop a solar farm and a carbon-neutral industrial site. Council bosses are pressing ahead with plans to develop a huge solar farm and industrial park next to the A6 on farmland it owns off Barrow Road in Quorn.…
Read More

UK gas supply mix changed by LNG Imports

The last quarter (Q119) saw a significant change to the UK gas supply mix, as the UK’s gas interconnector imports started to become displaced by a surge in LNG imports. Interconnector imports and LNG send-out have changed from 4.6% and 17.0% of total gas supply in February to 0.1% and 20.6% respectively in March. The…
Read More
Menu

Subscribe to our newsletter!

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

British Utilities will use the information you provide on this form to be in touch with you and to provide updates and marketing.