Austria
Belgium
Denmark
Estonia
Finland
France
Germany
Greece
Iceland
Ireland
Italy
Liechtenstein
Netherland
Norway
Poland
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Australia
Hong Kong
New Zealand
India
Indonesia
Japan
Malaysia
Philippines
Singapore
Thailand
Brazil
Chile
Colombia
Mexico
Peru
USA
Bahrain
Israel
Morocco
Oman
Saudi Arabia
UAE
Tanzania
Helping renewable energy investor with climate decision models
Octopus Energy Generation is one of the largest renewables investors in Europe.
It manages over 270 large-scale green energy projects across a number of countries.
The challenge
The client has a renewable energy fund focused on providing investors with long-term returns.
They needed to meet investment objectives of maintaining asset availability, and maximising lifetimes, by quantifying the materiality of climate risk impacts on their portfolio – and translating this into useful metrics for strategic decision-making.
Action
We developed an end-to-end risk intelligence model for the client that:
- Identified material climate risks ranked by investment vulnerability
- Provided a comparison of climate- and resilience-adjusted cash flow projections
- Quantified reduction in investment return variability
- Determined optimal resilience measures based on cost-benefit analysis
The collaboration with Howden’s expert team provided technical insight into how climate risk can be better quantified compared to the way that we have historically thought about it
Result
Octopus Energy Generation can now:
Better understand materiality of climate risks to their investment
Identify ways to establish a climate-resilient revenue stream
Implement resilience measures to reduce downside risk and ensure optimal divestment opportunities
Demonstrate the business case for resilience measures to their investment committee
We look forward to building on the work and advancing further the development of robust methodologies for climate adaptation in the renewables infrastructure sector
