SOLAR ENERGY AND INVESTMENT IN NEW ENERGY SOLAR
The significant growth of the global solar industry in recent years has created a new mainstream infrastructure investment class – large-scale, stable, cash-flow producing solar power stations that generate emissions-free power on the back of technological innovations driving cost competitiveness.
Investment in New Energy Solar potentially gives you access to:
- A rapidly growing global opportunity - Evidence suggests global solar power capacity could increase from 5 to 32 per cent of global power capacity by 2040.
- Low ongoing costs after initial investment - Fuel for solar assets is free and unlimited – life span of solar panels is 25+ years meaning the majority of investment costs are incurred upfront.
- Generally lower operating costs - Once panels are producing, minimal operating costs mean assets will generate cash flows throughout their useful life, irrespective of technology changes.
- Ongoing cash flow generation - Ownership of relatively low risk producing solar power stations that generate cash flows by selling zero emissions electricity into the power grid.
- Socially responsible investments - Climate change, pollution, natural resource constraints and positive public sentiment are creating more demand for electricity procured from renewable sources.
- Limited exposure to technology risk - Solar photovoltaics is not new technology, while investing in high quality assets may also be largely de-risked through long-term Power Purchase Agreements with high quality off-takers (i.e. governments, utilities and large corporations).
Like all investments, an investment in New Energy Solar carries risks which may result in the loss of income or principal invested. In addition to the general risks of investing, specific risks associated with investing in the Business include residual value of investments, distribution risk, currency risk and interest rate risk. For further information about the risks of investing in New Energy Solar see Section 5 of the Offer Document.