greenValue (opm) – photovoltaic funds determine the picture
[Nuremberg, December 4, 2007] The growing concern about global warming and dependence on oil and gas imports is directing investors’ attention to sustainable capital investments. The possibilities for getting involved are diverse. Interested investors are spoiled for choice and can choose between stocks, open or closed funds, bonds or certificates, taking into account their personal risk/reward weighting.Many investors are familiar with closed funds for financing real estate, ships or containers. Since 2000, the alternative form of financing has been increasingly used to finance energy projects. While initially it was primarily wind energy projects that were financed through this method, a completely different picture emerges at the end of 2007. Photovoltaic funds have currently achieved a top position. Long-awaited and widely announced in the press, projects with locations in Spain are now being issued for the first time.
In total, more than 30 environmental and energy funds with an investment volume of over 730 million euros will be offered in December 2007. Solar funds are leaders with 13 investments and over 50 percent of the investment volume. The distributions of the solar funds start at 210% within a 20-year term. The “Solar Fund 2” from Mainz-based TrendCapital achieves a comparatively high 280%. The systems for this and many other projects are already online, so that commissioning risks are reduced or no longer exist.
The Munich-based DCM AG, for example, is building its facilities in the logistics centers of a well-known food discounter in Germany and Spain. Since not all locations have been definitely determined yet, there are fixed parameters for locations that have yet to be contractually binding, which are intended to ensure economic viability. With an installed photovoltaic output of over 30 MWp, or a fund volume of 170 million euros, the fund is one of the largest solar investments offered to date. The offer from Sachsenfonds GmbH, based in Haar near Munich, is also an equally important project among renewable energy funds, with an output of over 30 MWp. In this project, the thin-film modules will gradually be put into operation on two former military areas in the greater Leipzig area.
The issuing house Voigt and Collegen from Düsseldorf, on the other hand, relies on Spanish and Italian sunshine. With the SolEs product line, investors are investing in a German KG that operates the Spanish and Italian photovoltaic systems. 8 – 9% p.a. should be paid for ten years, after which sales proceeds of 130% are planned.
The Oldenburg IFE is currently relying on sunshine but not on the form of financing via funds. With individual photovoltaic systems, it offers its customers individual properties from 15,000 euros in equity, comparable to a condominium. The systems are built and operated on rented roofs. Investors have options for both the financing they procure themselves and the tax depreciation options.
Demand from institutional investors is clearly noticeable in wind and bioenergy. Project planners are increasingly selling their energy systems to large investors at home and abroad. Wind funds can currently be described as a real rarity. Hardly any German projects are currently on the market. At the end of November, Bremer Energiekontor AG went onto the market with its second Portugal fund. Four Repower systems with an output of 8 MW are expected to provide investors with dividends of 341% by 2029.
In addition to wind turbines, biogas plants are also increasingly rarely implemented as closed funds. One of the few exceptions is the “Bergen auf Rügen biogas plant” from the Nuremberg-based UDI UmweltDirektInvest Consulting GmbH. On the Baltic Sea island, the system will be built and operated with 2 combined heat and power plants, each with 624 kW, which will be fed with, among other things, corn and whole plant silage. Based on the remuneration period guaranteed by the Renewable Energy Act (EEG), 308% distributions should be generated through the sale of electricity and heat, including the year of commissioning and 20 subsequent years of operation. Investors can alternatively opt for a term of 10 years. The distributions then amount to 72% plus sales proceeds of 105%.
Investors who want to invest both broadly and with capital protection have such an opportunity with the Biogarant umbrella fund from abakus Finanz GmbH, based in Grünwald near Munich. Conceived as a blind pool concept, investments were realized in the areas of biogas and photovoltaics, among others. The integrated capital protection guarantees that the equity invested can be repaid in any case at the end of the term in 2023. Despite the safety mechanism, investors can expect 232% predicted distributions. The concept offers fund managers the opportunity to take advantage of favorable purchasing opportunities and to react flexibly to the rapidly changing market conditions for energy projects, taking into account the fund’s investment criteria.
In addition to wind, solar and biogas, there is a fund that invests in geothermal energy projects. Although several initiators are working on developing geothermal energy sources, only a few funds have been launched so far.
Funds are increasingly being offered that invest in, for example, environmental technologies, water treatment, ecological real estate and sustainable forestry.
Trendinvest Consulting GmbH, for example, acquires up to 10 mobile wastewater treatment plants as part of its environmental fund. These are rented and offer companies a solution to comply with increasingly strict regulations regarding the discharge of wastewater into sewer systems. A good 170% distribution is forecast within 8 years.
And Freiburger Solarsiedlung GmbH is implementing its fifth fund as part of the first Sonnenschiff fund, which focuses on plus-energy building technology. Unlike previous funds, this is a commercial property that generates income from renting out the shops.
Overall, the variety of offerings increased in 2007 compared to the previous year. Investors can choose from the complete range of energy types and other environmental technologies from a regional or return perspective. The running times for energy projects are based on the EEG running time of 20 years. The past few years have shown that a secondary market is slowly forming that makes it easier to sell shares than it was a few years ago.
Interested investors can find information about current energy and environmental investments on the independent and neutral information platform www.greenvalue.de.
Publication free of charge, a specimen copy to greenValue is kindly requested.
Attention editorial staff: Daniel Kellermann, greenValue, will be happy to answer any questions you may have.
Daniel Kellerman
Owner and operator of greenvalue.de
Author of the guide to renewable energy investments
Source: December 4, 2007, www.greenvalue.de
