The emergence of renewable energy as an asset class in Australia presents an exciting new potential opportunity for income investors seeking high and stable yields in a low-rate environment. Jonathan Filbey, Investment Director at Octopus Investments, explains that clean energy projects form a core part of infrastructure portfolios for offshore investors. This is because renewables can often provide a superior risk/return profile to traditional infrastructure assets as their business models are underpinned by unlimited fuel sources, EBITDA margins of up to 80% and cash yields of 4-6%.
Here, Jonathan explains the defensibility and diversity characteristics that renewable energy infrastructure offers, why it may make sense for income investors and Octopus’s Darlington Point Solar Farm project, the country’s largest solar site.
Octopus Investments invests directly into the Australian renewable energy sector, helping to provide the innovative solutions it needs during its transition to a clean energy future. For further information on Octopus, you can use the contact form below, or visit their website for more details.