Wednesday, June 10, 2015

Renewables offer today better return on investments than fossil fuels

Investors and business leaders got an in-depth look at different ways investors are measuring carbon risk exposure at  ‘Finance and Climate: Metrics’ event during  Climate Week Paris in May. Stranded assets – wasted capital of fossil fuels remaining unburned due to climate impact - is particularly central to carbon risk methodology.
The power industry is traditionally very focused on the long term – or about 40 years, which is what an average power station would run for. However, investment environment can change quickly. For example, as Mark Lewis of Kepler-Cheuvreux mentioned, during just the last five years, the cost of solar power generation  came down from US$400 per MWh to just  about US$130 today. Solar and wind power projects provide better energy return on capital invested than traditional fossil fuel technologies, despite higher upfront costs. Read more at