Exploiting the power of renewables has always been marked as a sustainable and clean solution. In addition to this, investors have detected renewable energy solutions as an excellent, profitable and safe financial investment. In 2015, a new record was achieved with around 49 GW of renewable power added and put into operation worldwide. In 2016 this share rose to further 30 per cent and leads to a total amount of 300 GW installed clean energy. Support policies have become increasingly effective, resulting in improved deployment, technology innovations and cost reductions. This development spurs the attractiveness of clean energy investments even in new markets. Whilst guaranteeing long-lasting yields, a constant development and low risks, especially solar energy investments, differ from project to project and from market to market.
Solar power projects in emerging countries such as Zimbabwe or Pakistan reach high returns on investments, which are in comparison to solar energy investments in Europe in the double-digits. Due to their high solar irradiation many emerging markets offer the best preconditions for energy generation via solar PV technologies. In practice, however, it is not simple as that since many further aspects influence the decision which market seems to be the most appropriate for a clean energy investment. Key factors for a reliable and long-lasting investment are for instance the evaluation of risks considering the political situation, the legislation in the specific market, the transparency of the respective judicial system or the procurement, logistics, local weather related hardware and installation costs.
Zimbabwe’s shipping costs consume 15% of the total project budget and are therefore way over the benchmark. Additionally is there is no local hardware industry which supports the installation of solar PV systems. Furthermore, the country still lacks experience in the execution of PV energy projects, which implies additional time, manpower and a potential increase in risk. Whereas European countries, such as Spain, France, Italy or Germany can not compete with the solar irradiation of African states near the equator, these countries score with foreseeable legislations, low cultural and linguistic barriers as well as the essential know-how and experience to implement renewable energy projects.
Hence, it depends on the specific needs of the investor in which solar energy market his capital is best placed. In order to cater for these needs the financial advisory team of Petra Energy S.R.O analyses the political situation, the legislation, economic parameters and preconditions to ensure the most profitable and clean energy investment. Our advisory services provide accurate market assessments including updates on new regulations as well as technology assessments and recommendations. Additionally, we check the tax and accounting effects and handle the entire bureaucratic process. Thus, we ensure a long-lasting and profitable investment into sustainable energy projects and a green future.
