Moreover, funds raised for renewable energy projects in recent years are approaching 25 times the value of fossil fuel asset fundraising, per another industry report. This significant financial commitment highlights the growing recognition of the economic viability and long-term benefits of renewable energy investments.
Key investors such as KKR & Co. Inc., Brookfield Asset Management Ltd., EQT AB, and Energy Capital Partners LLC have actively bid for listed renewable platforms this year, aiming to accelerate the companies’ installed capacity in the coming years.
After a period of limited dealmaking activity, asset managers and infrastructure funds are now leveraging their project development skills as they grow more comfortable with the renewable energy sector. Brookfield Renewable Partners, for instance, has a strong track record of acquiring developers with significant pipelines in the US.
Peter Zhu, managing director at Macquarie Group Ltd.’s Green Investment Group, highlighted that the current higher interest rate environment has adjusted equity returns for renewables favorably, creating an attractive investment window for leading renewable platforms.
Last month, private equity firm EQT offered offered to acquire Swedish renewable energy company OX2 for $1.5 billion. The goal is to enhance EQT’s renewable energy portfolio and boost OX2’s growth in the energy sector.
This shift indicates a strategic pivot in private capital investment, focusing on the long-term potential and growth capabilities of renewable energy developers.
Source: Carbon Credits
