greenValue GmbH (opm) – Without price capriols – sustainable investments in renewable energies and environmental projects

Fluctuating share prices sensitize investors to investments without price capriciousness. This includes investments in renewable energies, such as wind power, biogas, or solar funds. The Renewable Energy Act, or EEG for short, forms a legally anchored framework for many projects. Local energy suppliers must purchase electricity from renewable energies for 20 full years of operation plus the year of commissioning and pay a fixed price. This legal support measure is intended to increase the share of renewable energies from 20 percent in the first half of 2011 to over 35 percent by 2020 at the latest, to 80 percent by 2050. It is a socially significant project because the last nuclear reactor will go offline as early as 2022. A look beyond Germany’s borders shows that the use of renewable energy is also promoted through country-specific laws in Italy, Spain, Great Britain, and other European countries.

This funding is widely supported in this country. Around 94 percent of German citizens support the expansion of renewable energies. At least, that’s what the TNS Infratest survey from August 2011 shows. More than 79 percent of those surveyed also stated that the additional costs of currently 3.5 cents / kWh, which arise from sun expansion, wind, etc., are appropriate or even higher below. Does goodwill end with personal investments at the latest? No. According to the overall market study of the investment models 2011 by Feri EuroRating Services AG, 920 million euros of equity was invested in 2010. The year before, it was 400 million euros. For the second quarter of 2011, the Closed Fund Association (VGF) announced that its 45 members placed 104 million euros in equity. Compared to last year’s period, an increase of over 6 percent.

Private investors can participate in various ways. What they all have in common is that they are entrepreneurial investments. They offer opportunities but also involve risks, which, in the worst-case scenario, can lead to the loss of the capital investment. There is no deposit protection fund, and if guarantees are provided, the fulfilment of these depends solely on the guarantor’s creditworthiness. If the issuers’ forecasts come true, investors can expect higher annual payouts than the capital market level. However, the basic rule is that planned payouts should not be confused with bank balance interest. The prerequisite for the payment is positive business development for the respective investment company.

In addition to the form of energy, the investment opportunities differ in the type of participation. The legal form of GmbH & Co. KG, known as ship investments or real estate funds, is often chosen for energy funds. Almost two-thirds of the current investment offers are designed as closed funds. The remaining portion is a mix of investments with a fixed-interest character, such as profit participation rights or bearer bonds. For investors with larger wallets, single investments in photovoltaic or biogas systems can also be considered. In contrast to participation, investors become property owners, like purchasing a property or a condominium.

On the other hand, the investments differ in the projects, also called assets in investment language, which are financed using investor money. For electricity-generating systems without the use of raw materials, such as photovoltaic, wind energy or hydropower systems, the calculation of income and expenses is comparatively simple. Energy yield reports form the basis, and the country’s typical remuneration mechanism ensures remuneration. There are no expenses for input materials. This is entirely in contrast to biogas and biomass plants. The costs for the use of raw materials play a decisive role here. The reason is simple. Only long-term delivery contracts can form the basis for solid forecasts.

In addition to investing in electricity and heat generation, investors can also participate in financing green buildings that meet defined sustainability criteria. Heat supply plays an important role in their planning. It is not uncommon for wood chips or pellets to be used in such well-thought-out residential or commercial buildings. The bridge to the raw materials market is built. It’s not just the 140,000 privately used pellet heating systems in Germany dependent on supplies. Large thermal power plants owned by energy suppliers also use wood to produce electricity and heat. Initiators offer the opportunity to get involved in the production and refining of wood or the recycling of plastic. Those who prefer liquids will find what they seek because two initiators devote themselves to water the most vital raw material.

But before investing, you need to inform yourself and compare. Private investors can currently choose their favorites from over 70 investments. With shorter and longer-term commitments, individual-term expectations with different opportunity-risk profiles can be realized. Once again, the success of investments that do not focus on energy production depends on management’s commitment.

Those interested can find more information at www.greenvalue.de, one of the largest neutral and independent information portals for environmental and renewable energy investments.

Source: September 29, 2011, www.greenvalue.de

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