The emergence of small companies focused on renewable energies in Spain has been accompanied by a race to attract financing. Some companies have given entry to large institutional investors as shareholders, but individual investors are also playing a relevant role in the take-off of these businesses. Whether as direct investors and through participatory platforms, or as shareholders – several solar or wind energy firms have taken the leap to be listed on the BME Grotwh market – or participants in sustainable investment funds, the renewable energy saver has clear characteristics. .Between 35 and 55 years old, with average annual income ranging between 25,000 and 200,000 euros, assets of less than 60,000 euros in most cases and a medium or high educational level. This is how Eduardo Calderón, CEO of Enerfip Spain, describes the average profile of the user of its participatory financing and investment platform in renewable projects. By sex, they are 60% men and 40% women, more balanced than what they describe in Fundeen, another co-investment platform that allows individuals to participate in renewable energy projects, where female investors account for only 25%. Another trait that characterizes the small investor in clean sources is that they value caring for the environment more than the expectation of simple profitability. In fact, 70.28% of Enerfip members cite sustainability as their main motivation, surpassing increased income, which represents 47.38%. Of course, they are confident of achieving a high return, in the range of 5%-6% over five years, according to Fundee, or 7% to 9% over a period of between two and three years, Enerfip estimates. More information They seek to have their money in a relatively short term and with higher returns than other options, such as bonds or remunerated accounts, can provide,” summarizes Nacho Bautista, CEO of Fundeen. In his opinion, “the territorial connection of the citizen with the project is the most notable thing that we have detected to date,” he expresses. It means that they have verified how citizen involvement and the amount of investment increase with the proximity of the person to the project they are going to finance. Regarding the interest among new generations of investors, Eduardo Calderón has confirmed that there is a lower representation in the ranges between 24 and 35 years old. “This data indicates that, although it is an attractive market for young adults, it is still preferred by people with greater financial stability,” he concludes. For his part, Víctor Monje, head of Investments at Schroders Greencoat in Iberia, a manager specializing in renewable energies and energy transition infrastructures, makes a distinction. If we are looking at a portfolio “of assets under construction and operation with a lower but much more predictable profitability in relation to future income, we see an older individual investor,” he specifies. However, when we talk about “assets in development, we have detected a trend toward younger investors, usually with advanced studies and who are looking for a degree of complexity that can be translated into greater profitability,” Monje differentiates. Furthermore, in the younger saver they do observe that social awareness is balanced on the list of priorities along with profitability, while the more mature saver has “a greater preference for profitability and potential risks,” admits the expert from Schroders Greencoat.
Sophistication and impact
Regarding the investor who is committed to having exposure to renewables in his portfolio through private equity funds, “until now he has had a certain level of wealth and sophistication, in line with the illiquid nature of the asset in which he invests,” explains Miguel. Lizaso, director of the A&G Energy Transition team. However, new initiatives have appeared in Venture Capital that reduce the minimum investment levels and more and more individuals are betting on this route. These tend to have a preference “for making investments with impact, that help achieve a carbon-neutral energy and economic model,” summarizes Lizaso. Furthermore, according to their analysis, they seek to support new solar photovoltaic or wind energy projects, “technologies that are integrated into their daily lives and where they can tangibly see the benefits they bring to those territories where they are installed,” he points out.
Diversified portfolios
If we broaden the focus and look at green investments in general, we find interesting conclusions in the Study on the behavior of the individual investor in the market for sustainable financial products, carried out by UPF-BSM, Gabeiras&Asociados and Triodos Bank. This work focuses on individuals who invest directly in listed companies that are considered sustainable and/or investment funds or pension plans registered as article 8 and 9, according to the classification of the Sustainable Finance Disclosure Regulation (SFDR). of the EU. This regulation refers to products that promote environmental or social characteristics in their investment policies (article 8), or have explicit sustainability objectives (article 9).
The study concludes that people between 35 and 54 years old spend their money on this type of vehicle – the authors find a balance between men and women – who have studies related to economics and business administration, and whose annual income exceeds 25,000 euros.
Another of their deductions refers to the fact that the majority of green investors do not focus only on sustainable or responsible products, but have set up a mixed portfolio in which this type of positions represents a broader strategy to balance risk and return. . Specifically, they dedicate between 6% and 20% of their portfolio to strategies related to sustainability.