How to invest in renewable energy

“It’s hard, very difficult, very difficult but it is possible”. Thus, the Executive Vice-President of the European Commission, Frans Timmermans, presented the approved Brussels Plan “EU REPowerCut gas imports from Russia by two thirds this year.

The plan will include increasing storage, diversifying supplies (larger imports of LNG), increasing energy efficiency and Increased use of renewable energy.

Just as the pandemic has accelerated a number of trends related to digitization, Russia’s aggression against Ukraine has unleashed an energy crisis aimed at providing new vitality to the renewable energy sector.

Despite the continuous growth for several years now, The renewable energy sector is a sector that has so far only expressed a small part of its potential: Currently in the European Union, the energy mix consists of about 70% of fossil fuels (coal, oil and gas).

According to estimates by the International Energy Agency (IEA), in order to comply with the Paris Agreement, it will be necessary, between now and 2030, to install 620 gigawatts of solar energy annually (Almost 5 times the 2020 level).

A decisive boost to the sector will also come from increased interest in Environmental, Social and Institutional Governance Issues (Environmental, Social and Corporate Governance), an indispensable requirement for almost all companies.

Besides the inevitable imperatives associated with any kind of change, The economic and environmental reasons behind the energy transition are strong and the current energy crisis is a catalyst for trends already underway.

A testament to investing in a greener future

To invest in three renewable energy champions, Bnp Paribas is offering investors a Fast Coupon Investment Certificate with three key-caliber big names First Solar, SolarEdge Technologies and Sunrun.

With the token Isin NLBNPIT17XP7, it is a product that allows you to get a potential bonus at expiration Even in the case of negative performance of the underlying sharesThe condition for obtaining the insurance premium at maturity is the fact that the worst guarantee in the basket is at or above the premium barrier level.

In the case of this product The premium barrier level has been set at 80% of the initial value of the three securities: In the case of First Solar, the initial and premium barrier were set at $71.22 and 56,976, respectively, in those of SolarEdge Technologies, the levels were at $264.5 and $211.6 and in Sunrun at $24.27 and $19,416.

By the deadline in just over nine months (December 20, 2022), There are three possible investor scenarios:

  • if it was The price of the three shares is equal to or above the premium barrier levelthe certificate pays the face value and pays the premium;
  • if list At least one of the stocks that make up the basket is below the barrier level premium but the price of all shares constituting the basket is equal to or above the barrier level at maturity, the certificate repays the face value;
  • if list At least one of the shares that make up the basket is below the barrier level at maturitythe certificate pays an amount proportional to the performance of the worst stock in the basket (with the consequent partial or total loss of the invested capital).

The barrier to maturity stands at 60% of the initial value: $42,732 for First Solar, $158.7 for SolarEdge Technologies and $14,562 for Sunrun.

The three basic stocks

First Solar is the world’s leading manufacturer of cadmium telluride semiconductor thin-film photovoltaic panels. First Solar has developed, built and managed many of the largest photovoltaic systems in the world.

Founded in 2006, SolarEdge Technologies Developed a smart inverter solution, which, in PV systems, maximizes power generation by reducing the cost of energy produced by the system.

sunron is an American supplier of solar panels and household batteries, headquartered in San Francisco, California. Founded in January 2007 by Lynn Jurich, Ed Fenster and Nat Kreamer, Sunrun is responsible for the installation, maintenance, monitoring and repair of facilities.

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