Switched On Public to Private: The Shift in Clean Energy Ownership
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Jan 30, 2025 Pietro Radoia, a solar specialist at BloombergNEF, and Ryan Loughead, a sustainable finance analyst, discuss the intriguing shift of clean energy companies from public markets to private hands. They dive into the soaring valuations of these firms and the impact of rising energy demands fueled by data centers. The conversation highlights the potential of private equity as a stable funding source amid fluctuating public valuations. Key challenges like grid connection bottlenecks are addressed, showcasing the urgency for tailored financing strategies in the clean energy transition.
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Clean Energy Valuation Rollercoaster
- Publicly listed clean energy companies saw valuations rise until 2021, followed by a decline.
- This decline is attributed to factors like net outflows, higher interest rates, and supply chain issues.
Private Markets and Clean Energy
- Private markets have become attractive to institutional investors seeking diversification.
- Clean energy projects align well with private markets due to their long-term nature and upfront capital needs.
Public to Private Shift
- A report on 56 publicly listed renewable energy companies revealed a significant decline in their median share price since 2021.
- This has led to acquisitions by large infrastructure and private equity firms, such as Brookfield's acquisition of Neowen.