Renewables: making returns amidst unparalleled energy volatility
Digging further into renewables, the M&A market remained hot for the sector for much of 2022. Infrastructure funds and well-capitalized strategics are squaring off in a quest for high-quality renewables assets, keeping valuations high even as they contend with supply chain constraints and higher interest rates. Project finance in the renewables sector decreased in 2022, especially for bond financing. However, more money has been flowing into greenfield financing, where investors found more opportunities in the past year. The top-performing subsector was Solar PV, carried by large transactions such as Gemini Solar + Storage in Nevada, Arica Solar + Storage in California, and Texas Solar Nova 1 and 2 projects.
- How have supply chain issues hampered prospects for investment in renewables?
- Will the Inflation Reduction Act accelerate investment flows into US renewables?
- Has the higher cost of capital from higher interest rates created winners and losers in renewables investment?
- How can returns be made given the unparalleled energy volatility?
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