The European and US renewable power sectors are in the doldrums and investors should look instead to energy efficiency companies.
That’s the verdict of the boss of a major asset management company.
Ian Simm, chief executive of Impax Asset Management Group, told Bloomberg that last year his company had seen energy efficiency investments perform “very well”, while alternative power did “relatively poorly”.
He said that in 2011 “we still see energy efficiency as benefitting significantly from high and probably rising oil prices around the world, and we still see a downside in renewable energy”.
He added: “Sentiment for European renewable energy is still in the doldrums, and probably the same can be said in the US, where power prices are low. The renewable energy sector in the US is at best stumbling forward.”
Impax is a leading environmental investor with particular focus on alternative energy, water and waste.