Wind industry intelligence service A Word About Wind, in association with independent investment bank and financial advisor Marathon Capital, has launched its Emerging Markets report, which provides detailed analysis and insight into the most attractive emerging markets for wind companies in 2017.
In particular, the report features an Emerging Markets Attractiveness Index, which analyses a range of factors in ranking the top 20 markets to be considered when investing in wind in Asia, Africa or Latin America. China, Chile and India are top of the list, with Mexico and Ethiopia rounding out the top five.
Investors in wind are increasingly looking to transition from mature markets in North America and Europe to those where the potential for a more attractive risk-to-return ratio is greater. As a result, there are a host of factors that firms in wind must consider when identifying the most suitable emerging markets in which to invest, including GDP, legal and regulatory frameworks, and the supply chain.
However, in the absence of in-depth familiarity with these markets, it can be difficult for investors to identify the most promising prospects for investment. The Emerging Markets report therefore seeks to assess which of the burgeoning wind markets offer investors the best balance between manageable risks and significant returns.
Richard Heap, Editor at A Word About Wind, said: “It can be tough for firms with little on-the-ground experience to know which countries are the best prospects for investment. Our Emerging Markets report addresses this by considering not only factors such as wind resource and the local supply chain, but also GDP and population growth.
“Based on a clear analysis and relative weighting of each of these factors, we’ve ranked our 20 key emerging markets and discussed the relative strengths of each. Investing in emerging markets will always entail a degree of risk – but we expect the analysis in this report to help investors negotiate them more effectively.”
In addition to its Attractiveness Index, the report also features insights from weather measurement specialist Vaisala on the wind resources in key countries in Asia, Africa and South America, and a range of in-depth interviews and expert opinion from those operating in these markets.
In Brazil, for instance, Mario and Lucas Araripe of leading developer Casa dos Ventos discuss the prospects for the wind industry in a country attempting to escape recession, having witnessed a fall in electricity usage. On the other hand, Marathon Capital’s Thiago Alfaia describes how a growing energy demand is opening up new investment opportunities for distributed renewables in Latin America.
Adam Barber, Managing Director of the Tamarindo Group, of which A Word About Wind is a constituent company, added: “As the opportunities for renewables investment in North America and Europe flatten off, we’ve seen an increasing number of clients on the consultancy side of our business look to Asia, Latin America and other emerging markets.
“This report offers wind investors in particular a systematic overview of the markets they need to be considering – and will be a valuable tool in helping them select the market that best meets their appetite for risk.”
Ted Brandt, Chief Executive Officer at Marathon Capital, said: “International energy investment brings both risk and reward – although not always in equal measure. As increasing numbers of energy investors look further afield and towards the emerging markets for future growth, the ability to understand the merits and pitfalls of target markets is imperative to their continued success.
“Working with A Word About Wind, we’re delighted to support their initiative to develop and build the Emerging Market Attractiveness Index, which provides a detailed breakdown and analysis of each market’s merits. For us and for others, we’re confident that it will prove invaluable when weighing up the many factors that must be considered when investing in these markets.”
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