The link between dramatic changes to our climate and humans burning fossil fuels for power has the attention of the world’s leaders: 196 countries acknowledged the urgent need to address our planet’s rising temperatures by pledging commitment to the 2016 Paris Agreement. Ambitious, government-led targets to reduce carbon emissions have followed and the transition to clean energy is driving the largest energy infrastructure program in history.
There is urgency among companies and institutions to commit to sustainable development goals while consumer consciousness around sustainability is also adding to the demand for critical renewable energy infrastructure.
Investor interest is being driven by widespread belief that private capital is essential to supporting decarbonization goals and conviction in the investment opportunities presented by the energy transition.
For investors, allocating capital that prioritises environmental outcomes has become viable since renewables have become more cost competitive. Demand has grown, costs have come down and technology has improved. Most pension funds and Sovereign Wealth Funds now make large capital allocations to the sector, attracted to the stable cash flows that are supported by very long-term contracts as well as the fact that these investments make a meaningful contribution towards demanding environmental and social agendas (ESG).
Those unique, differentiated characteristics have made renewable energy infrastructure a mainstream asset class in its own right. Today, institutional investors can choose from a menu card of dedicated funds that offer diversified exposure to the asset class. Investing directly in an infrastructure asset alongside a proven operator - widely considered the most attractive and cost-efficient way to access the stable income on offer - is an option traditionally available only to the largest institutional investors.
For individual investors wanting investment exposure to renewable energy infrastructure, the high investment amounts required are prohibitive and options are severely limited.
Using tokenization, Hedgehog is making it possible for individuals to access the benefits of investing in unlisted renewable energy infrastructure assets, directly and at low cost. Our aim is to solve the issue of access for individual investors while accelerating the conversion of real estate assets to being powered by clean energy.
Solar energy is perhaps the most accessible sector within renewable energy investments. Power is often generated just metres away from the end user and:
Rooftops are an ideal place for solar panels: across the real estate industry, rooftops represent largely unused space in direct sunlight. Once installed, solar panels generate zero-carbon electricity at a low and stable cost for their 20+ year lifetime and provide tenants with access to affordable green electricity over the long-term.
i.Park Solar is one of the largest arrays of rooftop solar in the New York metro area: 3,700 solar panels covering 2.2 acres of rooftop that provides the tenants of @ i.Park Hudson with a source of green energy.
Hedgehog has created a token representing a direct economic interest in @ i.Park Hudson structured as debt. which will allow eligible investors to invest in renewable energy and add a sustainability edge to their investment portfolio. Solar equipment creates such a steady and predictable revenue stream that it is ideally suited for debt financing, while the default risk is low because tenants know the energy is available at a substantial discount to grid prices.
With this token, we are looking forward to providing eligible investors on our platform with the opportunity to achieve two tangible outcomes:
✅ Earn attractive long-term income in a low-yield environment
✅ Support the transition to a low carbon economy and make a positive economic impact
Be part of New York’s move to a cleaner energy future, with Hedgehog and start investing in renewable energy.
Nothing in this article constitutes financial advice or guidance. The content in this article is an opinion and is for general information purposes only. It is not intended to be financial advice. The value of your investment can go up or down so you may get back less than your initial investment.