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Energy as ROI is a finance concept for fuel-free (renewable) energy that has so much upside that it has the capability to attract most of the liquidities that are available in the market. Why? Because it delivers a ROI that rises in value (kWh) instead of declining (currencies). Do the math: finding a better ROI will be hard. Investments by the 'Energy as ROI' model also delivers banks and pension funds a hedge for not yet hedged currency positions (the rise of energy prices, compensates the decline of currency based assets). They will use it as much as needed to cover unhedged exposure in currencies. For pension funds (and of course also for banks) it delivers a model for passive/riskless increasing profits/assets. For central banks it delivers a much much much more attractive model than foreign currency assets (declining) or gold assets (rising in value, but dead in terms of income, even negative in terms of income due to storage/protection costs). Central banks should convert their foreign currency assets into Energy as ROI based energy investments (could have the same geographical spread if that's what they want). Central banks should end all the gold leases to third parties (as these give 0.0 % security: we all know the status of financials) and invest the freed liquidities in energy investments by the Energy as ROI model. As bonus they drain the massive liquidity waves that disturbs financial markets very much, as much of these massive liquidity wave are backed by gold leases. Gold leases are bad for the own currency (fake security) and for other currencies (that are bashed by gold leases back liquidity waves). Energy as ROI is so powerful that it certainly will change both pension funds and central banks to a total new business model. There will be a before Energy as ROI and a after Energy as ROI business model and those two will be quite different. The valuation of Energy as ROI for the profit reporting of financials is simple: received ROI is profit. The valuation of Energy as ROI on balance sheets of financials is something the BIS should regulate, otherwise we'll suffer a lot of new Enron alike damage by fancy accounting/auditing methods in the future. Energy as ROI is a concept capable of generating a massive energy transition investment wave.

Author: Gijs Graafland

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