Energy revolution compels new energy mix

Nuclear energy's share of the energy market is now being redistributed –The publication "Perspective: Renewable Energies" deals with the battle between renewable energies to become the energy of the future. The decision to phase out nuclear energy has been made, but it remains to be seen what the energy mix will look like after 2022. In the recently published edition, investment and asset manager KGAL provides information on current developments as well as supplying background knowledge.

Renewable energies have benefited from subsidies that will expire in the medium term. This changes the demands placed on projects. A critical success factor is the choice of location, because good locations for solar energy, wind and hydropower are limited. "Prime locations are being snapped up as we speak", emphasises Michael Ebner, Infrastructure Managing Director of KGAL Investment Management GmbH & Co. KG. Those who invest now will also benefit from favourable start-up financing provided through existing subsidy systems and the opportunities afforded by rising electricity prices.

Andreas Ochsenkühn, Head of Infrastructure Portfolio Management at KGAL Investment Management GmbH & Co. KG, describes the upheaval on the energy market in an interview, where he discusses the designs capacity market and energy-only-market. In a capacity market, the electricity made available is remunerated. In an energy-only market, the actual energy delivered is remunerated. Regardless of the design selected, storage media are required when using renewable energies. There are numerous technologies such as batteries or compressed air storage. However, no technology is considered to be mature as of yet.

The publication "Perspective: Renewable Energies" provides brief and concise information about the market for renewable energies and the asset class. A download is available at: https://www.kgal.de/en/media/downloads/

Attachment

• KGAL_Perspektive_Erneuerbare_Energien_Text_1_Halbjahr_2019.pdf
• KGAL_Perspektive_Erneuerbare_Energien_1_Halbjahr_2019_03-12-2018.pdf
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