BNP Paribas Focuses on Low-Risk Energy

According to the CEO of BNP Paribas Joost Bergsma, the amount of €160m raised through the Clean Energy fund, exceeded the group’s expectations. Capital from the fund launched in 2008 has been invested in solar and onshore wind assets in Italy, France and Ireland.

The fund is focused only on small-scale hydro, biomass and onshore wind, said Bergsma, adding that there were complications waiting to be sorted out with offshore wind, which involves large projects with high investment risk, while onshore projects are medium sized.

Having invested in 50MW of solar assets in Italy and onshore wind and solar investments in France and Ireland, the group is now set to enhance its asset portfolio. Its large size will bring diversification to more investments in Europe, focusing for now on the west of the continent, but the other parts of the continent will not be excluded. The fund follows a ten-year buy-and-hold strategy that ensures the group will manage the asset for seven to eight years until cash returns stabilize.