Europe’s energy transition is proving to be fertile financial ground for institutional investors.
A survey by investment firm Aquila Capital found that 63 per cent of institutional investors cited energy storage as having the greatest investment potential, followed by transmission (45 per cent) and interconnectors (41 per cent).
And Hamburg-headquartered Aquila Capital believes that cost reductions, technology development and improving regulations will continue to strengthen the investment case for storage.
The study found that it is the shift from fossil fuels to clean energy that is opening the door to more and more investors, with 68 per cent citing the increasing share of renewables in the energy mix to be the top energy sector attraction, followed by the restructuring and decentralization of grids (62 per cent).
Susanne Wermter, Head of Investment Management Energy & Infrastructure EMEA, Aquila Capital, commented: “These findings underline the growing appeal of the energy transition among institutional investors and the opportunities that they find most appealing. Indeed, 82 per cent of investors said they would be attracted by a multi-asset class fund mandated to invest in renewable energy generation, storage and transportation.
“Europe is making progress on its energy transition journey and investors have an unprecedented opportunity to benefit from this.”