Business Practices

Investing in Long-Life Renewable Energy and Energy Efficiency Assets

Investing in Long-Life Renewable Energy and Energy Efficiency assets is quite attractive for long-term investors since they present a low technical risk and long and predictable cash flows.

This paper reviews long-life asset-investments. Risk assessment must be one of the corner stones of every investment decision and needs to follow 3 important steps:1. Risk identification, 2. Risk valuation, 3. Risk hedging decisions depending on the amount and type of risk the investor is willing to take