Higher interest rates have made all the difference in renewable energy

As renewable energy has matured as an asset class investment strategies have split into two distinct approaches. These can broadly be bucketed into shorter term “build and sell” strategies focused on delivering capital gains, or the longer term ”buy and hold” approach where returns are delivered through income. Importantly, they offer investors different risk profiles and return outcomes are amplified by exposure to discount rate movements and adoption of leverage, both of which increase the “build and sell” investor’s sensitivity to the interest rate cycle. Read more.