Funding future energy

In April 2022, the Intergovernmental Panel on Climate Change (IPCC) published its third climate report, making clear the vital role that renewables play in achieving net zero.

Soon afterwards, the UK government published its long-awaited Energy Security Strategy, providing much-needed clarity on the areas where it aims to focus, and those where it does not. Meanwhile, businesses, communities and financial institutions are all looking for ways to achieve their ESG goals, making sustainability a hot area for investment.

In this year’s report, we’ve provided a snapshot of current and future trends in equity and debt finance in the future energy sector, covering the UK, Scotland and Northern Ireland. Market trends include:

• A noticeable increase in confidence and risk appetite amongst investors
• Joint ventures being entered into at an earlier stage and continuing for longer
• A strong precedent in technologies like battery storage, paving the way for a greater breadth and depth of funding
• As the amount of available capital outweighs the number of new projects, technologies are starting to compete on a more equal footing, meaning project modelling and developer pedigree will become increasingly important