92 Robb Report

A l ternative energy and green pursuits, which used to be driven by futurist think tanks, now offer an increasingly viable investment opportunity. Despite the recent slide

in fossil fuels, the march towards green doesn’t mean just planting more trees or taking petroleum-powered cars off the roads. It entails creating new markets, jobs and investment opportunities.

In the realm of solar energy, increased efficiency and reduction of equipment and installation costs has fuelled a huge influx

of capital investment. Warren Buffett himself started with a US$2.6 billion ($3.5 billion) investment which will increase to

US$30 billion by the end of next year. Google is committed to solar power

investments to offset its immense electrical energy usage by agreeing to fund more than

Renewable energy is now adding value to investments.

GREEN MEANS GREEN

By ERIC STACHOWSKI

Google is committed to solar power investments to offset its immense electrical energy use.

Illustration OLEG BORODIN

93June – 2015

US$1.5 billion in clean energy wind and solar projects. Elon Musk funds his SpaceX programmes with cash flow from SolarCity, a leader in full-service solar power systems for homes, businesses and governments in the US. The technopreneur is also raising billions for his ambitious lithium-ion battery factory in Nevada. Musk’s US$200 million acquisition of solar panel manufacturer Silevo is part of his strategy to build a module factory in Buffalo.

The most profitable company in the world, Apple, has also leveraged itself into the solar space. The company has spent US$3 billion on solar facilities in California and Arizona, partnering with First Solar on a 1,174-hectare solar farm in Monterey County. Its CEO Tim Cook remarked that the First Solar project will produce enough power for

the company’s headquarters, all its retail stores in California and other facilities.

Government policy changes have been

a massive driver for China, the US, EU and Japan, creating incentives for domestic and international investment. In Malaysia, recent legislation mandated a 40 per cent reduction in carbon emissions by 2020.

Some stock plays and green funds are proving to be excellent performers. Direct investments in solar farms can be a superb hedge against constantly rising costs at the very least, if not fantastic returns. ≠

Some stock plays and green funds are proving to be

excellent performers.