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By and
Private
infrastructure investors are snatching up green
bargains in what’s emerged as a buyer’s market
for wind, solar and battery projects.
The moves follow a
a slump in?, as US President Donald Trump’s
call for more??has sent a chill through
the sector and boosted??to
pivot back to core business.
“We think the
fundamentals of renewable power are as strong as
they’ve ever been,” said?Ignacio Paz-Ares,
managing partner and deputy chief investment
officer in the renewable power and transition
group at?. “Whenever we see a
dislocation between what the market noise is and
the fundamentals, that creates a very good
opportunity for us to make acquisitions at very
attractive entry prices.”
Brookfield is among
the asset managers betting that rising energy
consumption and competitive economics of
renewables will continue to drive demand for the
sector.
In recent months
Brookfield?has done a
series of big green deals, including a??to buy an onshore
renewables business from?, a ?1.75 billion ($2.3 billion)??in UK offshore wind farms from??and a �6.1 billion ($6.6 billion)??of
French developer Neoen SA, which owns solar,
wind and energy storage assets. Paz-Ares said
the firm is looking to buy more as it continues
to raise money for its?.
The acquisition of
Neoen was particularly good timing for
Brookfield. The alternative asset manager and
co-investors first bought a??in December for �39.85 a share, a
third lower than Neoen’s peak in early 2021.
A large
battery storage facility in?Australia. Photographer:
Carla Gottgens/Bloomberg
With all of these
deals, Brookfield took assets from the public
market into the private one. They highlight an
opportune moment for investors with money to
spend on the sector. A stock market bubble for
all things green peaked in early 2021 and has
now left valuations of publicly-traded clean
energy companies around the lowest level in
about five years.
“Stock prices
haven’t done well over last few years, but in
the real economy clean is booming,” said?, head
of sustainability and transition strategy at
Jefferies. “When sentiment around something is
low, it’s a good time to be a buyer.”
Vincent Policard,
co-head of European infrastructure at?, which is looking to??for its first Global
Climate fund, said the geopolitical factors
putting pressure on valuations is “creating a
compelling opportunity for long-term investors
like us to lean in and support the energy
transition.”
At the same time,
the retreat of some of Europe’s biggest energy
companies,??and?, from the renewables sector has
created opportunities in areas like offshore
wind. BP made some of its hugest wind bets off
the UK coasts a few years ago, driving up prices
for projects.
Copenhagen
Infrastructure Partners, which recently??with �12
billion, said it’s now starting to re-enter
those waters.
“We stayed out of
the big blood bloodbath in the North Sea,”
said?Jakob Baruel Poulsen, managing partner and
co-founder at CIP, but the firm recently bought
a 480-megawatt??off
the western coast of the UK in the Irish Sea at
“very attractive terms.”
CIP said last month
it was acquiring full control from its current
owners Cobra and Flotation Energy. A press
release on the announcement said Flotation
Energy??as a development
partner to the project.
Beyond Europe,
Baruel Poulsen said the new fund will invest in
the US and Australia, markets where onshore
renewables and batteries are set to play an
increasing role in meeting demand in the power
system.
Wind and solar are
the??worldwide — at a time when
energy consumption is set to soar with new
demand sources such as data centers. In the US,
annual wind farm additions are expected to
increase by some 40% this year compared to 2024,
according to BloombergNEF, while solar will see
a 10% rise to a record 54.4 gigawatts of new
capacity added.
Despite the
challenging political situation in the US, “we
continue to be bullish on the energy
transition,”?,
managing director of Canada Pension Plan
Investments, said on a panel at the
Infrastructure Investor Global Summit in Berlin
on Thursday. “We have been quite busy and we
continue to find good opportunities in
renewables.”
Read on Bloomberg.com.?
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