Renewables appetite remains strong
Investor appetite for renewable energy infrastructure remains robust, despite the triple shock of COVID-19, the oil price war and 2019’s unseasonably warm winter in Northern Europe on electricity pricing.
This is according to Augusta & Co., a specialist financial adviser to the renewable energy sector, which said while the cost of project finance remains higher than before Covid-19, demand from investors in renewable energy is set to rapidly rebound. It pointed to favourable feedback from the renewables investor base, alongside the recent completion of highly complex transactions in the space.
Mortimer Menzel, partner at Augusta & Co., said: “The renewable energy industry is continuing to prove its resilience to major disruption with financial transactions and project development continuing to move ahead despite the demand shocks we have seen.
“We have not seen a reduction in investor interest for green electricity producing assets. Investor confidence in the market’s recovery remains high and we expect to see an acceleration in the number of deals during the summer, barring, of course, any setbacks in the recovery from the pandemic.”
Wind energy deal
Fortum’s 500MW deal with Credit Suisse Energy Infrastructure Partners was successfully closed with Augusta’s support on 18 May. The deal covered a portfolio of three operational wind farms – the 32MW Nygårdsfjellet, 50MW Ånstadblåheia and 76MW Solberg – and two under construction – 90MW Kalax and 154MW Sävar – across Norway, Finland and Sweden.
Mr Menzel said there is now a move towards financing without bank debt, while investors are moving more rapidly towards full merchant deals.
By Rebecca Jeffrey
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