There are a variety of ways to identify good opportunities for investors.

Identifying a good opportunity to take advantage of is key to success as an investor.

1. The local market. In the case of the UK large-scale renewable projects are typically priced off of Contracts for Difference (CFDs). CFDs offer a fixed price for the energy generated by a renewable project over a set time period. In the case of British projects, you might want to first establish the likelihood of a CFD arrangement being made and in particular the previous precedents of CFDs being signed/agreed for this type of energy generation.

2. Planning and local rules. In the case of a speculative project in offshore wind power or a solar farm you should pay close attention to the likelihood of any planning objections or any potential difficulties arising that could put a halt to a project.

3. Management. You should seek out a team with a proven track record of success and who have experience in managing and operating similar projects. You should do your due diligence in this area as poor management is the difference between success and failure in a majority of cases.

4. Funding sources. Has the project got a variety of funding to enable it to carry out the necessary works? What was their previous sources of funding and what network of investors did they use? These are crucial questions you should be investigating in your analysis of a potential investment.

5. Risks. What are the biggest potential risks in the investment? What could go wrong in terms of regulatory issues, funding concerns or problems related to the future pipeline of work. Have you consulted with any experts or someone with industry knowledge or have you just depended on the company’s own sources?