Sensible investments in renewable energy

For those of you, that have read my earlier blog posts will know, that part of my current portfolio is 1.2m DKK (200k $) of investments in renewables energy.

Portfolio background available here https://minimal5.com/2019/04/07/the-financial-status-part-2/

That investment is actually 2 different investments in 2 different renewables projects. The first one is 450k (75k $)in a K/S investment in a solar photovoltaic plant in Germany, and the second one is a 750k (125k $) investment in an A/S (limited) solar photovoltaic fund.

The K/S investment (danish K/S investments are comprised of 10 individuals, participating in the investment, and subject for tax deductions in the personal income.) I entered into in 2016, just before the K/S investment firm was discontinued by government. Part of the return on the investment is driven by a reduction in taxable income, and was actually quite lucrative. ( overall expected return on investment around 9-10%). Unfortunately the investment form has now been discontinued by the danish government.

Hence, 2nd investment is in a normal limited corporation investment (unlisted) in a range of European solar photovoltaic farms.

First investment (K/S Ritter) will pay out first dividends in this year 2019, and estimated to be around 10k for my investment. Second investment (Obton Stabil) will pay out an estimated 37k of dividends in 2019. Both dividend payments is expected in May.

Below you can see the monthly production rate for K/S Ritter, as well as income from sale of electric power. All in all, performing as expected and as budgeted in the prospect.

Performance for my second investment can be seen below. Slightly above budget so far. 🙂

Besides being good for the environment, and helping the transition towards a greener and more sustainable economy, these investments are also proving to be financially very sound, and good for my financial independence plans. Also, they are very stable, uncorrelated with the wider traded stock markets, and performs so far almost like bonds, with 8-9% rate of return and 5% dividends.

The stability, high rate of return, high dividend payments, non-correlation to stock markets in general, and no personal liability are why these investments have been put in as the base of my dividend paying investment portfolio.

What’s not to like.

PS. Remember the cheapest and cleanest energy is the one not used at all

The only drawbacks of these investments are that they require a rather high investment (750k DKK and 450k DKK), that the investments are not listed, and there is a bit more paperwork to be filled out initially.

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That would really be helpful, as I am trying to write this blog anonymously. Thank you 🙏.

3 thoughts on “Sensible investments in renewable energy

  1. What if wind capacity becomes cheap as a lot of new capacity is installed? Isn’t that a large risk in this project?

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