Get connected to the mainstreaming of renewable power

geniusksy // Shutterstock
geniusksy // Shutterstock

In a global market increasingly bereft of yield, how important a role can renewable power infrastructure play for investors? An essential one, especially for those looking for stable long-term income with attractive return potential. 2016 so far has been another remarkable period for financial markets. Global monetary policy remains broadly accommodative-and in some areas more and more so-propelling equity markets ever higher and leaving a record amount of sovereign debt around the world (almost $12 trillion by midyear) yielding at or below zero (source: Fitch Ratings, as of 6/29/2016). It's no wonder then that investor interest has been rising in real assets , which currently provide attractive yield compared to many other financial assets. In particular, renewable power -the fastest growing portion of global infrastructure-has garnered a lot of attention, especially wind and solar. Why renewables? To answer that, one must first understand the changing global energy landscape. According to the United Nations Environmental Programme, renewable power represented 53.6% of new global generating capacity in 2015. That's the first time it has represented a majority-in the United States this figure was higher still at 68%. The numbers show wind and solar technologies have made strong inroads into global power grids in recent years, and the trend shows no signs of abating. Renewable energy also leads the way so far this year with 35% of total transactions in global infrastructure (source: Preqin).


What's powering the rise of renewables

Money talks. photovoltaic onshore wind
Positive policy drivers. Corporate power users are now on board.

Why invest in renewable power

Long-term, stable income. Attractive return potential. High diversification benefits. A degree of inflation protection. David Giordano is Head of the North American Investment Team, BlackRock Renewable Power Group. He contributed to this article.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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