Clean energy firms still offer good returns: investors

LONDON (Reuters) – Renewable energy companies could still provide substantial returns for private equity investors this year as those with real growth potential are surviving the economic slowdown, investors said at a conference on Wednesday.

Shares in clean energy companies under performed other stocks in 2008 because of their dependence on growth, technology advances and high oil prices. More expensive debt since the financial crisis has curbed installation of clean energy projects, for example in wind and solar power.

Many clean energy companies’ growth has been hindered as the economy has slowed down and capital has dried up. Larger ones are surviving because they downsized, cut costs and raised capital before the economic crisis hit, investors said at the Clean Investor 2009 conference in London.

But investors are still quite optimistic. Many clean technology private equity fund managers raised a large amount of capital through new funds which means there is still a pool of capital for clean technology available, they said.

Reuters