Renewable energy market gives developers and investors pause for thought

When the ground is shifting or the going is tough, joining forces can make a lot of sense. The booming Australian renewable energy market is a changing and challenging environment, but it also holds out enormous opportunity for developers and investors willing to work together for mutual benefit.

For renewable energy developers, a combination of challenges are increasing the cost and complexity of projects and making it harder to reach financial close.  Connecting to the grid and securing offtakes is not as simple as it was, so the benefit of having the ultimate project owner involved in key project development items is becoming more pronounced. For developers, partnering with an investor may offer early access to capital and credit, greater financial security, and support to secure power purchase agreements. Developers may also benefit from an investor’s expertise and networks that can be leveraged in lobbying and advocacy to successfully bring projects to financial close and commercial operations. 

For investors, partnering with a renewable energy developer is an effective path to better carbon credentials. The world’s biggest utility giants, oil/gas majors and financial investors are keen to capitalise on the renewables boom, with its potential to improve their ESG bottom line as well as deliver growth.

PwC's latest report Renewable energy market gives developers and investors pause for thought, highlights the forces shaping the market and explains how developers and investors can unite for mutually beneficial outcomes.