3rd Edition of the Renewable Forum
Despite current sanitary restrictions, Natixis, in partnership with Oddo BHF and BBVA, was pleased to organize the 3rd edition of the RENEWABLE FORUM on 17th June 2021.
Nearly 120 meetings between selected equity and credit investors were held on the day with 24 companies such as EDF, Engie, Total Energies, Iberdrola, Royal Dutch Shell.
There were 1:1 meetings, group meetings and also a panel on the theme:
“Growth, Competition, Return on investments: what trends to expect” led by renewable experts Dr Christoph Husmann - Encavis , David Ruiz de Andres - Grenergy Renovables and Sébastien Clerc - Voltalia, moderated by Eric Arnould - Natixis and Philippe Ourpatian - Oddo BHF.
Key points from the forum:
- 24 companies and 120 investors attended;
- There are no specific concerns regarding inflation and rising interest rates: long-term contracts partially or fully indexed, limited impact of rising interest rates on financing costs;
- An increase in commodities is clearly a concern but players were reassuring: short-term trend, contingencies to cover this type of risk are systematically factored into the budget for each project, protecting against the risk of a deterioration in the project’s return;
- Competition is stable and growth still promising: unchanged competitive landscape arrival of new entrants (oil groups or investment funds that acquire companies and do not solely finance projects) has not had a significant impact on the existing competitive framework, outlook still on a growth mood (energy transition, energy policy choices);
- Asset disposals are still on the agenda, helped by M&A: enthusiasm for renewable assets seems to remain a marked trend (eg. offer of EQT on Solarpark), farm-down plans envisaged by a large number of players should allow for a certain crystallisation of value;
- Equity IRR is unchanged: The trajectory of returns on equity (IRR) is unaffected and remains in an average range of 200bp above the weighted average cost of capital.
This 100% digital event, held annually, demonstrates great teamwork.