The amount of money raised by renewables-focused investment funds has overtaken that raised by conventional energy investment funds for the first time, according to analysts at data company Preqin.

In the year-to-date, nine renewables funds have raised $5 billion (£4bn), compared with the $2bn raised by conventional energy funds.

There are currently 73 renewables-focused funds trying to raise a combined $35bn, compared with 52 funds that are targeting $29bn to deploy in conventional energy.

Analysts think investment managers will try to raise funds that target a mixture of conventional and renewable energy.

‘More attractive to investors’

Tom Carr, Head of Real Assets Products at Preqin, said: “Public pressure and governmental policy to address climate change has placed constraints on the fossil fuel industry, while the US shale oil boom has depressed oil prices in the mid-term.

“At the same time, technological breakthroughs have reduced the cost-per-unit of renewable energy sources, making them more attractive to investors." 

“Both approaches are set to remain important components of the energy market, but the outsized dominance of conventional energy may not be as evident.”

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