Wind

Dec 6, 2024

Renewable Energy Trusts Are Not for the Faint-Hearted

Renewable energy infrastructure funds have faced challenges over the past three years, with rising interest rates causing investors to favor government bonds, resulting in a significant 32% average discount in renewable energy trusts.

Despite this, the sector’s long-term outlook is positive, boosted by the Labour government’s clean power targets and decreasing interest rates, making these assets attractive relative to government bonds. Analysts suggest that there are undervalued opportunities within the sector, recommending funds like Greencoat UK Wind, Bluefield Solar Income, and Octopus Renewables. However, high debt levels, specific operational issues, and volatile power prices continue to pose risks. Read more.

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