Most analysts are haunted by the same question, every single day: where to invest in the future? Each has their own answer, grounded in a more or less successful prediction of market trends.

From this multitude of answers, a particular type of investment is increasingly attracting the attention of analysts, as an alternative to more common shares and bonds. New profit opportunities, focused on long-term trends, such as renewable energy.

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In particular, there is a sector on the renewable energy market characterised by significant growth and which provides savers with extensive options as well as a good risk/profit ratio. Investors can even choose whether to opt for infrastructure or power generation companies. All this without forgetting that this sector has brought some raw materials to the limelight, virtually unknown a short time ago.

Investing in renewable energy: the infrastructure market

Over the next few years several nations are expected to invest much more decisively in the renewable energy sector, especially those burdened by soaring C02 air levels.

However, growth in this sector will need to be underpinned by infrastructure development. According to the experts, billions will be invested to this effect over the next few years.

Therefore, several countries will issue government bonds to fund these investments. Staying ahead of the game is the best strategy for investing in a sector experiencing secure expansion.

Other reasons for investing in renewable energy

But there are far more reasons for investing in renewable energy. Apart from the C02 issue, the intrinsic characteristics of the renewable energy market are what make it such an appetising investment. For example:

• offers stable cash flows over the long term and good visibility for investors;
• correlated with inflation;
• not dependent on economic cycle trends;

Renewable energy and investments: the raw materials market

As previously mentioned, growth of the renewable energy market has also resulted not only in the emergence, but in a veritable boom of certain raw materials in the sector. Lithium, for example, was up 60% in 2017 alone (data from the Benchmark Mineral Intelligence Index), whereas in the previous year it grew by 50%.

Growth in demand and the price of Lithium is showing no sign of slowing down. In fact, as electric cars continue to spread, it is forecast that demand for Lithium will increase even more.

However, lithium is far from the only raw material to benefit from this historic moment: cobalt, used for electric car batteries, has also experienced an unprecedented rise in demand.