Monday, April 17, 2017

Brokers renewable energy investments lively ... Policy changes should be careful



It is becoming more open alternative investments [goyounghun financial newspaper reporter Korea] securities. Among spotlighted the renewable energy sector. In conjunction with the government's policy to comment on the risk management of each securities are actively laying the investment strategy it is also coming out.

According to the 17th financial investment brokerage industry are not preoccupied with solar, wind and various renewable energy investments in revenue-generating business areas, such as through project financing (PF), funding arrangements, such as biomass. Renewable energy is a renewable energy as a means plus the new energy and renewable energy is a photovoltaic, solar, bio, wind, water, etc. In the new energy can be given to the fuel cell, hydrogen energy.

The last three days SK Securities Gangwon Jeongseon gohaneup material has completed 99 billion won jeongam scale wind farms PF. PF is eighth at SK Securities jeongam 32.2MW wind power project is the total size and produces approximately 70,000 2128MWh of electricity per year. Approximately 10,000 green power produced by power consumption of 7,000 households for one year can bring greenhouse gas emissions reduction of 52,000 tons a year.

November 2014 was established a dedicated Renewable Energy Team SK Securities PF has organized about 3416 PF billion KRW to date. SK Securities was in progress, such as the PF 2015 Gyeongnam uiryeong county wind power, solar power goheungman, military solar power. Last year was a complete Gangdong-myeon Gyeongju Gyeongju johangsan wind power projects and wind power PF. SK Securities is a purpose built size 300 billion won fund for SMEs this spring Renewable Energy also plans to raise.

Another renewable energy powerhouse was one of the financial investment involved in this year Total cost 600 billion won scale renewable energy generation projects. With Korea Midland Power Kunsan 2 Total cost countries to invest 585.3 billion won in the Industrial Park 'Gunsan bio power projects' are projects to build power plants 200㎿ scale biomass power plants. July 2020 and the start of commercial operation goals. He served as co-organized institutions with KEB, Hana Bank. Once the plant is completed in a greenhouse gas reduction effect of the power production of approximately 810,000 tons per year and the annual 1251GWh is expected. Has progressed also implies a new city community energy generation business and Gwangyang biomass power generation business to the SRF, which currently involve promoting green energy as a heat source.

KTB Investment & Securities taking renewable energy and financial investment aircraft track strategy is concentrated on Europe, photovoltaic power generation projects and biomass projects. Wellingborough UK biomass power plant project to sell power for 10 years, also receives subsidies of the British government. In addition, Japan has contributed to Canada, Belgium and revenue in investment banking (IB) posted improved profitability, etc. International Renewable Energy PF. This year has progressed even solar energy PF arrangements between Japan and Canada. In addition, there are also concrete risk-type hedge renewable energy investments.

Operating in the renewable energy sector from 2013, Korea Investment & Securities Assets can also Gunsan largest state in the last three days development Sunshine Project funding share will be selected to bring it out to the field rate.

But the alternative investment grows it should be noted growing number of debt securities. According to the Korea Investors Service last year, the securities industry is contingent debt to 23.3 trillion won, which increased more than three times compared with 2011.

Depending on the alternative policy hagetdaneun niche of the investment the renewable energy sector is a situation in which it is preempted small and medium-sized companies. Compared to large companies it could adversely affect the financial situation of these small and medium-sized buy that have relatively less capital to. Compared to contingent liabilities of alternative investments it is one of the key areas of real estate PF already serious situation is the part do not care.

Long-term fixed-price schemes should also be careful. Because it can cause fluctuations in profitability in accordance with the policy uncertainty. Long-term fixed price contract system is the way in which renewable energy supply certificates (REC) seller and buyer advances public trading at a fixed value to the sum of long-term wholesale power prices and supply authenticated price. This is coming out of positive comments on the financial sector because it ensures a long-term profits. But this part, because solar, wind, energy sector weighting is applied differently REC may require attention. Depending on the REC weighted profitability is due to be changed. No political volatility should better understand the map.

Industry experts pointed out that it is necessary to wait and see the market situation Shin Junghi because the situation is not yet proven long-term profitability, as well as other alternative investment sector. FSS side has said that "policies to monitor whether the phenomenon of displacement in a specific area of ​​this year's investment bank."



Daily Economic News Finance FNTIMES - commercial reprint, copy, distribute prohibited purposes under the Copyright Act
Copyright ⓒ Korea's Financial News & FNTIMES.com