Pension funds: Latest investor in the wind energy sector
Wind energy companies seek to develop more and more operational wind energy projects and farms every year. Many nations have now pledged to get a major portion of their power from renewable sources of energy like wind, water etc. but funds for these projects are huge and large companies are relying less on loans from banks.
Developers of large renewable energy projects are now targeting investments from pension funds. The expansion plans of many companies and nations have clearly laid down the need of development of renewable energy projects in coming decades. For achieving these goals, pension funds seem to be a good investment source since they have a lower threshold for return on invested capital.
Latest news of Swedish wind power, Arise Windpower, indulging in such new investment plans for upcoming projects show the eagerness of investors to see renewable energy projects as a source of stable and consisting cash flow. If these institutional investors are successfully tapped, then the inflow of capital will get a boost and a long term growth trajectory can be drawn for this industry.
