UK Investor Confidence in the Brazilian Renewable Energy Market

Client

Brazil Energy Programme – UK Foreign, Commonwealth & Development Office (FCDO)

Challenge

As part of the ongoing Brazil Energy Programme, FCDO had needed to establish a baseline index of UK investors’ confidence in and the attractiveness of the Brazilian renewable energy market. This had included an understanding of contextualising factors such as barriers to investment, strengths and weaknesses of the market, perceptions of different technologies, and comparison with European and other South American markets.

Solution

CLT had developed and carried out an online survey, analysed and controlled the data to develop an index value, held contextualising interviews, and prepared a final report. The survey was designed to be run annually, as a way to track investor interest in the Brazilian renewable market.

CLT had designed a short survey (approximately 10 minutes to complete) to be completed online, which targeted three key sectors:

1. Investors
2. Advisors and professional service providers to investors
3. Providers of services or equipment to renewable projects

The survey was sent out to over 800 individuals at more than 150 companies in the CLT investor database, as well as more than 2,000 individuals through the FCDO. The survey had also been advertised through LinkedIn. The range of these had meant that the survey reached a diverse audience of investors.

Based on the responses to the survey, CLT had carried out a detailed analysis of the data to produce two key metrics, a confidence index and an attractiveness index, as well as a wide range of other findings. This analysis was supported by one-to-one interviews held with a representative sample of the survey respondents. These interviews had added additional context to the data and had allowed the client a more detailed understanding of the drivers behind the attractiveness of the market and market confidence.

Outcome

Combined, the data and the interviews had shown a mixed picture of the confidence and attractiveness of the Brazilian renewables market; it was seen as an attractive area, but there had still been regulatory barriers to entering the market. The key findings were:

• Investors had found Brazil an attractive renewables market overall, but had not yet been confident in it
• The main barriers to market entry were government and regulation based
• A majority of the respondents to the survey already had an interest in Brazil, and were more confident in the market than those not currently present in Brazil
• Almost all respondents were optimistic about the future of the Brazilian renewables market, expecting it to grow
• The investors were more confident in technologies which had already been more established in other markets, and that they were familiar with, such as Solar PV and Offshore Wind, with an optimistic view for the potential of Hydrogen in Brazil
• Regionally, Brazil was seen as broadly comparable to other Latin and South American markets, but were significantly behind European investors

This report had provided the FCDO with an index to track how investor confidence and attractiveness in the region developed, and the impact that their actions had on investors. It had also provided information on the areas with the greatest momentum or barriers to investment, and where support would be most effective.

“CLT have played a critical role in the successful delivery of the Brazil Energy Programme. The organisation has a real commitment to quality and has consistently demonstrated their ability to get things done even in challenging circumstances. CLT have demonstrated the breadth of their expertise, based on strong analysis of the UK market across a range of renewable energy sectors.”
— Zane Kanderian, Project Director, Brazil Energy Programme