Paris plans to offer its support to India to gain its backing for the COP21 agreement.
During the past two years over $16 Billion has been invested in the US in Renewable Energy Yieldcos. But some of these stocks have lost almost 50% of their value - so what’s the real story? Were Yieldcos hyped up or do they still offer a sustainable equity financing model in the US?
Performance dips are forcing a reassessment of the yieldco model. Lower expectations can help, but if not there is a more radical option.
According to the third edition of North America Renewable Energy Brief from US national professional services firm CohnReznick LLP, yieldcos have raised $19 billion through IPOs, secondary offerings, and various debt instruments over the past two and a half years.
Two recent yieldco U-turns appear to have been driven by specific financial considerations rather than concerns about yieldco’s prospects, experts have said.
An analysis of yieldco data confirms poor share performance is in reality a US phenomenon. Elsewhere it is more of a mixed bag.
On a podcast recorded on September 14th, I said I thought that Yieldco stocks had bottomed at the end of September. Two weeks later, that call still looks like a good one. I'm starting to hear optimistic noises from other Yieldco observers, although the general tone remains quite bearish.
There are strong reasons for the yieldco model to get back on track, albeit with more realistic expectations.
BLOOMBERG - SunPower Corp. posted a third-quarter loss as the second-biggest U.S. solar manufacturer opted to keep some power projects on its balance sheet instead of selling them.
BLOOMBERG - Acciona SA, the Spanish construction company that’s one of the world’s top owners of renewable power plants, ruled out forming a yieldco to absorb some of its developments, saying more of its growth will come from solar photovoltaics.
As unrealistic expectations of dividend growth are scaled back, yieldcos are now on a more sustainable path.
Two of Europe’s largest utilities are avoiding investments in yieldcos, a business model that has raised $28 billion for the renewable energy industry, citing volatility in market conditions and pressure to keep the businesses growing at all costs.
SunEdison Inc. Chief Executive Officer Ahmad Chatila created two companies over the past 15 months to buy his solar and wind farms. Now he’s cutting them off, and investors like it.
SOLARSERVER - 8point3 Energy Partners LP (San Jose, California, U.S.), a limited partnership formed by First Solar, Inc. and SunPower Corporation, on September 30th, 2015 announced financial results for its third fiscal quarter ended August 31st, 2015.
24/7 WALL STREET - For many reasons, one asset class that has taken an absolute beating this year has been the alternative energy stocks, and right in line with top solar stocks have been the yieldcos. A new research report from JPMorgan takes an interesting angle on what investors can do with three of the top yieldcos that have been absolutely eviscerated.
BLOOMBERG - Trina Solar Ltd., the world’s biggest manufacturer of photovoltaic panels, plans an initial public offering of a “growthco” unit that would absorb capital-intensive solar farms it develops.
Plummeting share prices have prompted concerns over the US yieldco model. But not all observers have lost confidence.
Over the last year, we have been consistently negative on YieldCo valuations and did not see a reason to invest in any of the YieldCos in the market. We were of the opinion that the market was mispricing risk in the long term assets held by these YieldCos.