RE Royalties – The next phase of the energy transition begins on the capital market

An opinion piece by André Will-Laudien (Apaton Finance GmbH).

Investors are increasingly questioning whether public subsidy programs in their current form can remain financially sustainable in the long term. Capital-intensive projects with long payback periods—such as offshore wind farms, hydrogen infrastructure, or massive grid expansions—are particularly affected. The result is a paradigm shift within the green finance world. A shift away from purely politically driven visions toward cash-flow-oriented, lower-risk financing models with predictable returns. Just a few years ago, capital flowed almost unconditionally into ESG and cleantech projects. A study by McKinsey & Company shows that financing costs are now among the biggest obstacles for many energy projects. Young companies in particular are suffering from the combination of higher refinancing costs and more cautious capital markets. Low interest rates made long-term infrastructure investments extremely attractive, even when profitability was often far off. This environment has changed fundamentally. Today, investors demand significantly higher returns, faster cash flows, and more robust business models.

In this environment, models that rely less on speculative future scenarios and instead deliver stable cash flows are gaining importance. Similarly, investors are increasingly seeking structures that benefit from the energy transition without bearing the full technological or operational risks. This is precisely where new niches are currently emerging within the green finance sector. RE Royalties is positioning itself particularly well in this regard. The Canadian company follows a model that is still largely unknown in Europe but fits the current market phase strategically very well. Instead of developing solar, wind, or storage projects itself, the company finances selected energy facilities and receives long-term revenue shares in return.

As a result, the model resembles royalty or streaming structures from the commodities sector more than those of traditional project developers.

COO Peter Leighton will explain at the 19th International Investment Forum on May 20, 2026, how this approach can generate strong returns. Click here to register for free.

Read the full article here.