Status of Renewable Energy Finance in the U.S.

How have U.S. renewable energy companies fared in the public markets and in private finance this year? ACORE just released a report on conditions in the US and China, and on their efforts to help both countries move renewable energy forward. Following a successful first quarter, public equity markets have recently exhibited considerable volatility, largely due to the European credit crisis and policy uncertainty, resulting in many clean energy IPOs being delayed and leading to a large IPO pipeline. Private equity and venture capital investments, however, are increasing substantially quarter-on-quarter, with a particular focus on energy smart technologies, solar and wind, and investment still overwhelmingly concentrated in California. Asset and corporate financings are recovering from the lows of 2009, but still lag behind Europe and, increasingly, China. Public Markets Given current market conditions where investors are unsure about where the economy and energy policy is headed, investors in clean energy stocks have become increasingly selective. U.S. and European investors are favoring companies with differentiated products or business models and are increasingly shying away from markets they perceive as commoditized, such as the wind and solar supply chain. Given the general capital shortage and market uncertainty, combined with an abundance of […]

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