A new study1 commissioned by Aquila Capital reveals that currently 7% of European institutional investors have any exposure to hydropower, compared with 37% to solar and 29% to wind. However, just over half (52%) of institutional investors are committed to diversifying or increasing the size of their renewable portfolio.

1. Over half of institutional investors are
commited to diversifying or increasing the
size of their renewable portfolio.
Key Reasons for investing in hydropower
Offers long-
term stable
cash flows
Renewable
portfolio
diversi­
fication
Overall
portfolio
diversi­
fication
Inflation
hedge
Attractive
IRRs
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0 %
66 %
55 %
45 %
38 % 38 %
Preferred vehicle for hydropower
investments by European
institutional investors
Direct
ownership
Co-invest-
ments
Specialised
investment
funds
Managed
accounts
60 %
50 %
40 %
30 %
20 %
10 %
0 %
10 %
55 %
12 % 12 %
What are the key drivers for the growing
importance of renewable infrastructure
amongst institutional investors?
Increasing in-house
expertise
Increasing interest in
socially and environmentally
responsible investments
Greater access to
scalable projects
Co-investment
opportunities with other
investors
Enhanced choice of
investment vehicles
Supporting government
policy
24 %
55 %
53 %
31 %
33 %
17 %
0 % 10 % 20 % 30 % 40 % 60 %50 %
WindHydro-
power
Solar
Current Exposures of
European institutional investors
in Renewable Infrastructure
7 %
37 %
29 %
40 %
30 %
20 %
10 %
0 %
Allocation of European Institutional Investors
to Renewable Infrastructure