Global Advanced Energy Insights Report Vol. 6

Mercatus is a global leader in delivering asset and investment management solutions to energy, infrastructure, and private equity investors. The conclusions in the Mercatus 2018 Global Energy Insights Report come from analysis of over 210 GW of assets managed in the Mercatus Investment Lifecycle Management (ILM) solution across 100+ countries.

Learn what key insights Mercatus was able to uncover by analyzing the data of all assets on the ILM platform. This report highlights insights on present and future trends, such as:

Increasing Financial Model Complexity Affects Project IRRs

Analyzing detailed financial model inputs, Mercatus found an interesting tipping point in asset model complexity when the number of assumptions and inputs start to affect project valuations and Internal Rate of Return (IRR). Learn what this means for your own financial models and how data inputs can be controlled to avoid this costly IRR drop-off.

New Planned Projects by Asset Class

A key theme in this year’s report is asset diversification and globalization. In 2017, over half of the asset owners and investors using Mercatus focused on just 1 asset class. By 2020, almost 70% expect to manage assets across 3 or more classes and geographies. How does that affect portfolio returns and risk? Find out by downloading this year’s report!

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The trend report analyzes aggregated anonymized data on customer energy investments managed by Mercatus Investment Lifecycle Management (ILM).

Key findings include:

  • BY 2020, over 60% of asset owners will manage assets in 3 or more regions (up from 50% operating in only 1 region in 2017)
  • Industry-wide PPA prices will continue to decline for both wind and solar projects coming online over the next 3 years
  • While renewable subsidies will drive project development in North America through 2019, overwhelming number of new projects – mostly solar and wind – will come online in emerging markets
  • Did you know… The introduction of panel tariffs by the current Administration may cause the US market to fall from 10th to 19th place in most attractive solar markets ranked by project Internal Rate of Return (IRR)!

 

Learn more about this and other key insights inside this free report.