Earlier this year, Italy announced its plans to significantly increase renewables capacity by 2030. But what are the factors driving and impeding progress? S&P Global Ratings’ Stefania Belisario and Massimo Schiavo consider the answers for Renewable Energy World.
Italy boasts a track record of meeting renewables targets – but under different circumstances. As such, meeting the 2030 targets, though possible, is not without hurdles. Upcoming renewables auctions through 2021 are estimated at 7GW, meaning Italy may require levers beyond those scheduled to achieve their lofty ambitions.
Please click here to read the full article.
Writing for Renewables Investor, Timucin Engin, Senior Director, GCC Region at S&P Global Ratings, considers the growing support for sustainable finance across the Gulf Cooperation Council (GCC).
While the green bond market in the GCC is still in its infancy, Engin argues that the region’s huge investment in renewables – which serves both to alleviate the pressures of falling oil prices and further promote sustainable practices among GCC members – could spur transactions funded via green finance.
To read the article, please click here.
As environmental appeal and regulatory support grow, technology improves, and costs decrease, solar energy is becoming increasingly accessible and thus, commonplace.
Speaking to Energy CIO, Michael Ferguson, Director, Sustainable Finance at S&P Global Ratings, explores the challenges holding back the proliferation of solar, and the ways in which the industry is working to overcome these obstacles.
Please click here for the full article.
In an exclusive interview with T&D India, Abhishek Dangra, Infrastructure Sector Lead, SSEA, S&P Global Ratings, considers the outlook for India’s green finance market over the coming years.
“India has pledged to have 40 per cent of installed generation capacity by 2030 to come from renewables”, explains Dangra. “As such, green financing options have begun to pique interest from the Indian market.”
This rings true of Parampujya Solar Energy, a subsidiary of Adani Green Energy Ltd., who recently proposed US$500 million in green bonds to finance and refinance its solar power plants and related transmission structure. The proposed issuance received an S&P Global Ratings’ Green Evaluation score of E1/90, the highest on a scale of E1-E4. This evaluation also marks S&P Global Ratings’ first Green Evaluation in India.
For more information on S&P Global Ratings’ Green Evaluation, please click here. To read the full interview in T&D India, please click here (p.20).
S&P Global Ratings has published 2019’s first edition of Infrastructure Finance Outlook, its newsletter of key infrastructure and project finance-related research and ratings news.
In this edition, S&P Global Ratings considers global infrastructure investment trends, spanning China, the GCC and the Americas, along with the regulatory and political risk factors across these regions.
With global political uncertainties on the rise, infrastructure investors are even more focused on long-term sustainability. And, as environmental, social, and governance (ESG) considerations are rising to the fore of investment strategies, the credit rating agency dedicates this edition to providing greater insight to its newest offering, the ESG Evaluation.
Please see the full newsletter in PDF here.
Natixis acted as mandated arranger, sole coordinator, bookrunner and sustainable development coordinator for the issuance of a €100 million loan by French power producer Voltalia – the first green and sustainable syndicated loan for a European independent power producer.
“By supporting Voltalia in this new operation, Natixis confirms its long-term commitment with this client, and its determination to deliver innovative solutions underpinned by its strategic commitment to green and sustainable finance based on three pillars: innovation, service and integrity” said Marc Vincent, Global Head of Corporate & Investment Banking and Member of the Senior Management Committee, Natixis.
Following outreach by Moorgate, the news was covered by the following specialist publications: Environmental Finance, FinanzNarichten, DGAP, Renewables Now, Bloomberg, La Mia Finanza, Il Sole 24 Ore, PV Magazine, IJGlobal, TXF, Solarnews and EticaNews.
In the coming years, Italy’s gas-dominated power market will transform as wind and solar capacity catches up and coal-fired assets are phased out. This is according to a new report from S&P Global Ratings analysing Italy’s National Energy Strategy, which aims to increase the share of renewable sources to 30% by 2030.
Stefania Belisario, Associate Director of Infrastructure at S&P Global Ratings and primary analyst of the report, says: “The anticipated growth in renewables to 2030 adds downward pressure on wholesale power market prices, but this will be offset by continued coal and nuclear closures in France, Germany, and elsewhere as well as upside in demand from the electrification of transport, and, to a lesser extent, heating.”
Following outreach by Moorgate, the report was covered by Solar Power Management, Energia Oltre and World of Renewables.
Natixis has teamed up with Groupama Gan Vie, a subsidiary of the Groupama Group, to launch the first green structured note that is entirely supportive of the energy transition. The move reflects both groups’ proactive approach to the fight against climate change.
The product offers a means to directly finance renewable energy projects in order to ensure more environmentally-respectful energy production. The funds collected will be invested exclusively in wind, solar, hydraulic and biomass projects that respect responsible management criteria. The structured not will be issued by Natixis and launched on 1 May.
Elie Bitton, Head of EMEA Sales and Global Head of Financial Engineering, Natixis Global Markets, said: “We are proud today to be able to offer an investment solution that is 100% committed to the climate, and we thank Groupama for its trust and confidence in this high-profile operation.”
Following outreach from Moorgate, news of the launch was covered by El Asesor Financiero, Noticias Canarias, Structured Retail Products, International Advisor, Compelo and Investment Europe.
What key trends do infrastructure investors face in 2019? For one, nationalist and populist movements are on the rise – creating an environment of heightened political risk, which investors may find hard to navigate. The result could weigh heavily on regulatory stability, as well as country risk or sovereign credit quality.
In tandem, environmental, social, and governance (ESG) matters are beginning to rise in prominence. Increasingly, investors are stepping up their focus in their investment mandates on companies that are seen as acting more sustainably.
Against this backdrop, the latest edition of Outlook keeps investors abreast of the most-read research from the past quarter – offering insights into how the Infrastructure segment is changing and, importantly, how it may yet evolve.
Outlook is available in PDF here
Moorgate compiles, edits and designs Infrastructure Finance Outlook.
In September 2018, now-outgoing California Governor Jerry Brown signed SB100: a mandate to keep California on a path to deriving 100% of its power from clean sources by 2045. In an article for Utility Dive, S&P Global Ratings’ Michael Ferguson explains how this may mean significant credit implications for the state’s power generators.
Undeniably, SB100 is a boon for renewable energy assets in California. But it’s a mistake to consider these benefits to be mutually interchangeable — instead some assets stand to benefit more than others.
Ferguson writes: “While SB100 will naturally benefit existing solar and wind power, less obvious is by how much and when. Both asset types represent most renewable installations in the Golden State. Yet they are by no means immune from risk.”
Read the article here.