Private debt in renewable energy infrastructure – Intelligent Investors
Philippe Garrel, Head of Energy Transition Funds at Sienna Private Credit, gives his opinion of the private debt investments situation in renewable energy infrastructure in Intelligent Investors. Currently private debt investments in renewable energy infrastructure offer stable cash flows, regulatory advantages, and good entry conditions. With the European Union’s Green Deal and rising interest rates, the sector provides excellent opportunities. Infrastructure investments generate stable returns, low default rates, and are less impacted by inflation. Regulatory momentum and rising interest rates make it an advantageous time to enter the private debt market. Financing renewable energy infrastructure also contributes to the energy transition and offers measurable impact. However, there are vulnerabilities, risk considerations include market and project maturity, location, and regulatory factors. Overall, it is a promising investment with sustainable returns and measurable contributions to the energy transition.
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