Enerdatics observes that private equity (PE) firms are targeting platforms with operating and under-development assets, while utilities are focusing solely on development pipelines. Enerdatics believes this reflects the difference in acquisition strategies of both buyer groups, with the former aiming to tap into current cash flows and future farm-down opportunities. Meanwhile, the latter seeks to leverage its debt capacity and development expertise to enter asset pipelines at attractive multiples, develop the projects, and then divest them at market premiums.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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