“The Albanese government has committed to slash greenhouse gas emissions by 43 per cent from 2005 levels by 2030, and to hit net zero by 2050, by nearly tripling the country’s share of renewable sources as well as investing in new technology such as hydrogen as well as spending billions of dollars to expand the transmission grid.
These efforts have made the sector increasingly more attractive for local investors such as super funds and asset managers as well as offshore participants, driving up prices and valuations of renewable energy projects.
“Values within this sector have been impacted by the very strong demand for investments in clean energy,” Palisade Investment Partners’ executive director Simon Parbery tells Investment Magazine.
“[There is also] a growing universe of investors who need to improve their ESG credentials coming from other jurisdictions who also see the opportunity set given the targets [Australia] has.”
While returns on these investments have fallen gradually as demand increased, investors can still expect a 10-12 per cent return according to industry sources.
Palisade recently announced a new renewables investment platform, Intera, that attracted allocations from Aware Super, HESTA and the Clean Energy Finance Corp. With installed capacity of more than 1.5GW and an estimated first 12-months EBITDA of $150 million per annum, Palisade plans to use Intera the platform as a vehicle for future acquisitions.”
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Klyne, Sharon. Investment Magazine 1 June 2023.