Skip Ribbon Commands
Skip to main content

Energy and Infrastructure Advisory

Thought leadership

JLL's Energy and Infrastructure Advisory team have detailed knowledge of the regulatory landscape and periodically provide their opinions on emerging trends in the sector. Please read below for our expert view on the latest developments in the renewable energy industry.

Going Global: How UK energy investors are exporting their expertise

Following the removal of government support mechanisms for traditional renewable energy technologies in the UK, certain groups of investors have either evolved to embrace merchant risks or adapted into alternative energy asset classes - trends which were explored in depth earlier in this series. Driven by a desire to utilise their previous expertise, others have been migrating to alternative markets to invest in these same core technologies, where opportunities to deploy capital on scale have been abundant. - read " Going Global: How UK energy investors are exporting their expertise"

Offshore wind energy powers up the UK

With the pressure on to develop clean energy sources to meet the UK’s growing energy needs, the offshore wind sector is stepping up to the challenge. - read " Offshore wind energy powers up the UK"

Broadening Horizons: How UK energy investors are adapting for the future

The withdrawal of government support for traditional renewable energy technologies in the UK disrupted the prevailing flows of capital into the sector. Whilst, as discussed in Part One of this series, certain investors have evolved their investment strategies to embrace merchant risks, other investors have instead adapted their investment remit to include alternative energy asset classes which still benefit from the secure revenue profiles once afforded to onshore wind and solar. - read " Broadening Horizons: How UK energy investors are adapting for the future"

Subsidy-Free: How UK energy investors are evolving for the future

A decade after the financial crash, growing political anxiety towards the fiscal burden of renewables has refracted the trajectories of global energy policies, with many influential leaders electing to prioritise alternative issues over their climate commitments. Investors now face the challenge of funding projects with little or no government support yet, despite this, an increasing number are preparing to invest on a fully-merchant basis, buoyed by bullish power price forecasts and perceived value extraction from increasing price volatility. - read " Subsidy-Free: How UK energy investors are evolving for the future"

What's in store for renewable energy in 2019?

2019 is expected to be the ninth consecutive year where global investment volumes remain firmly above the US$200 billion mark, despite a combination of headwinds including the prospect of further withdrawals of renewable energy subsidies and increasing dependence upon market prices, not to mention global trade tariff disputes and Brexit.

Change - both regulatory and technological - is on the horizon this year, says Dane Wilkins, Head of Energy and Infrastructure at JLL. - read "What's in store for renewable energy in 2019?"

Tracking renewables investors into the wild

Renewable energy investing has been a booming business for the past five years with significant swathes of wind and solar generators now competing head on with heavyweight incumbents across the globe. We expect this trend to continue, however, the withdrawal of subsidies has prompted a change in investment style and direction to maintain attractive risk-adjusted returns. - read "Tracking renewables investors into the wild"

A European success story: the globalisation of offshore wind

By the end of 2017, there were over 18GW of offshore wind turbines generating enough energy to power 16 million homes across Europe.

Almost every industrialised nation now faces the same challenge: balancing their growing energy demands with tightening decarbonisation commitments whilst also ensuring power affordability. In this context, offshore wind is increasingly seen as a panacea and is set to take the world by storm - read "A European success story: the globalisation of offshore wind "

Electric Vehicles - Why investors are tapping into the electric vehicle market

A huge rise in demand for electric vehicles in the UK is opening up new opportunities for energy and infrastructure investors.

Big oil majors and private equity firms are already investing in electric vehicle (EV) developers, while equity funds are starting to look for opportunities in the vast infrastructure network needed for charging the EVs. And other investors are likely to follow suit. - read "Electric Vehicles - Why investors are tapping into the electric vehicle market "

Electric Vehicles – will 2018 mark an acceleration point for funding EV charging infrastructure?

Funding the innovative sparks that will electrify the transport network represents a significant opportunity for new energy infrastructure investors in 2018 but deciphering the best business case to apply across a wide ranging property portfolio is no small feat. - read "Electric Vehicles – will 2018 mark an acceleration point for funding EV charging infrastructure?"

Capacity Market bubble bursts – when will the market reflate to fund future developments?

The Capacity Market auction for delivery in 2021/22 has cleared at £8.40, the lowest price recorded yet for a T-4 auction. The price recorded implies capacity is not in short supply in the GB market but it does raise questions on the prospects for future price corrections and whether the market will reflate in subsequent auctions. - read "Capacity Market bubble bursts – when will the market reflate to fund future developments?"

Corporate PPAs Overview

PPAs are becoming an increasingly attractive proposition for corporates; they offer a secure long term supply of clean energy, cost certainty in uncertain times, and the opportunity to avoid ‘greenwash’ by adding new renewable generation to the grid. With the cost of fossil fuels rising and renewable energy increasingly becoming the cheaper option, corporate PPAs are growing increasingly popular, with a wave of large deals closing in Q4 2017. - read "Corporate PPA's: The Devils in the Detail"

Energy Market Predictions 2018

The JLL Energy & Infrastructure Advisory team predict the outlook for renewables in 2018. - read "Energy Market Predictions 2018 "

The rising tide of floating renewables

From a wind farm off the coast of Scotland to a solar plant on a former coalmine in China, some recent record-breaking renewable energy schemes all share one common trait: they float. As land becomes increasingly expensive and planning consent for large-scale projects is more difficult to acquire, both the number and size of floating renewables projects are on the rise worldwide – especially solar. - read "The Rising tide of floating renewables"

Offshore Wind – What Energy Trilemma?

The UK government has published the results of the second CfD auction and the results for offshore wind are truly astonishing, with 3 gigawatts (enough to power over 3 million homes) securing contracts. Two of the winning projects, Hornsea Two and Moray Firth, will be delivered at a price of £57.50 per megawatt hour (“MWh”), which is far below even the most bullish of industry predictions.

For many years, the energy market has wrestled with the ‘trilemma’: security of supply, decarbonisation, and affordability. Offshore wind is currently delivering all three.
We have the following observations about these results: Offshore Wind – What Energy Trilemma?

Energy Outlook Predictions 2017

As 2016 draws to a close and we look back at the impact of Amber Rudd’s policy reset, the Capacity Market failing to deliver support for large scale new build CCGT, Brexit and Trump reshaping the global political and economic landscape, it is timely to ‘pause’, draw breath and reflect on what 2017 may have in store for the UK Low Carbon Economy – read “Energy Market Predictions 2017”.

Renewables Outlook 2016 - Bracing Against Change | January 2016

Following the Conservative election victory in May 2015 there has been a clear move by the Government to redefine policy for supporting renewables in the UK. This shift in focus represents a major change in emphasis for delivering on the UK’s low carbon objectives and has important implications for the wider energy sector – read “Renewables Outlook 2016 - Bracing against change”

Onshore Wind in a Subsidy Free World | July 2015

The early close of the Renewables Obligation (“RO”), removal of LECS and strong rumours of a reduction or even removal of support for onshore wind in the next Contracts for Difference (“CfD”) auction mean future onshore wind projects must demonstrate commercially viability without subsidies.

Merchant wind represents the prospect of financing onshore wind projects without subsidies based solely on selling power in the wholesale market. In this brief we review how this can be facilitated from a property perspective and the implications for land rent and the anatomy of a lease – read “Onshore Wind in a Subsidy Free World”

Nimbyism, Budgets and Big Power | July 2015

The surprise victory for the Conservative Party in the recent general election has led to the new Energy Secretary, Amber Rudd, making decisive statements about her party's intentions regarding the future direction of UK energy policy including the removal of subsidies for new onshore wind projects. In this brief we review the impact of the proposed policy changes on the UK renewables sector - read "Nimbyism, Budgets and Big Power".

Solar PV: Shedding Light on the Opportunities | October 2014

This paper has been prepared by JLL with Solarcentury for the purpose of considering the impact of rooftop solar photovoltaic (PV) installations on the financial performance of commercial property. The aim is to explain the use of solar PV in the context of commercial property and then principally consider the relevant valuation methodology that can be used to ascertain the impact on property values. The paper explains how solar PV works, the current market context, relevant valuation methods with case studies and key attributes and risks - read "Solar PV - Shedding Light on the Opportunities".

JLL Renewable Investment | September 2014

JLL’s Energy and Infrastructure Advisory team reports increasing investor appetite in UK offshore wind energy and anticipates new interest in the wider renewable energy sector from Asian investors. It’s the world’s largest offshore wind market, set to more than double in size before 2020, but institutional investors have long been reluctant to dip their toes into UK waters - read "JLL Renewable Investment".

UK Onshore Wind Investment Activity | January 2014

In November 2013 the Government issued an update to its UK Renewable Energy Roadmap to give investors and developers better visibility on the government’s ambitions for the renewable energy sector up to 2020. In this brief we review recent developments in the UK onshore wind market and comment on emerging trends expected to influence investor appetite in 2014 - read "UK Onshore Wind Investment Activity". 

Contracts for Difference - Government publishes revised strike prices | December 2013

DECC recently announced onshore wind and solar support levels under the new Contracts for Difference (“CfD”) support mechanism will be revised downwards from 2015-16 by £5/MWh compared to the draft strike prices issued earlier in the year. In contrast the offshore wind industry has been rewarded with the offshore wind strike price not being tapered so drastically in 2018/19 as was previously planned - read "Contracts for Difference"

Hedging Your Bets - EMR update | September 2013

CfDs have been designed to mitigate price risk and provide efficient long term support for low carbon generation but the devil is in the detail and there are a number of other risks that need to carefully considered. In this brief the JLL Energy and Infrastructure Advisory team investigates what those risks are and how they compare and contrast to those that exist under the current Renewables Obligation ("RO") – read "Hedging Your Bets – EMR update".

Developing Onshore Wind under ROCs vs CfDs | August 2013

The government has now published draft FiT CfD strike prices for renewable energy, so what do they mean for the value of onshore wind developments under CfD versus ROCs? The JLL Energy and Infrastructure Advisory team in conjunction with Infinergy, seeks to explore this question by considering one of Infinergy’s recently consented onshore wind projects – read "Developing Onshore Wind under ROCS and CfDs".