Understanding the Landscape for Investing in Clean Energy
Introduced by a mutual friend, I had a good talk earlier today with one of the East Coast’s top players in clean energy merchant/investment banking. Like us at 2GreenEnergy, her firm works hard to unite investors with the world’s top business concepts/models in this space.
It’s always interesting to compare notes with other people who are trying to keep their fingers on the pulse of investor appetite in this space. My new-found friend makes two observations I thought merited comment here:
• A regrettable truth about this whole marketplace is that it’s incredibly inefficient, meaning that buyers and sellers waste a terrific amount of resources trying to find one another, establishing a fair price for what is being offered, and cutting the deal. She said, “This is not going to change anytime soon. Finding the right investor for the deal, if it can be done at all, takes huge patience and a great deal of luck.” I totally agree with all of this, and, frankly, I felt strangely gratified to hear that a person of her stature validates my observation that this is not an easy time to be in this business.
• She said, “We’re seeing a trend away from ‘traditional greentech investing,’ i.e., opportunists looking for an undervalued deal, in the direction of philanthropy/ SRI (socially responsible investing).” That’s certainly good news for everyone overall, i.e., that an increasing number of people care about the world around them. On the other hand, I hope investors whose only motive is profit stay closely aligned to this marketplace. In fact, I know they will, as we’re about to see the forces of pure market economics, based on nothing other than the falling costs of renewables (and efficiency, storage, etc.) begin to drive a revolution in the energy marketplace.
I remind readers who have clean energy business plans they’d like to discuss with me that they are welcome to call or write anytime.
I am looking for a green tech opportunity in which IRA money can be invested.
Please see my email.
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At AAEC we believe humanity needs to urgently repower human activities with cleaner energy on a much wider scale, and that innovation is key to a better future and we aspire to offer home and business owners, towns, cities, counties and utilities a new concept low-carbon pathway to greater energy efficiency, energy security, cleaner energy and economic development. We also believe now that the latest IPCC Report is out and President Obama is moving the climate issue to the front burner these will boost what AAEC is offering to an increasingly stressed planet.
AAEC’s product lines can be manufactured in the US and in most any locality on any continent for the local and regional market. This AAEC believes could create licensing opportunities and many thousands more good paying jobs, and these are among the things we propose offering to an alternative energy hungry world.
For further details please contact:
Les Blevins, President
Advanced Alternative Energy
1207 N 1800 Rd., Lawrence, KS 66049
Phone 785-842-1943
Email LBlevins@aaecorp.com
For more info see
http://aaecorp.com
http://advancedalternativenergy.com
http://aaecorp.com/ceo.html
https://www.linkedin.com/profile/view?id=45587557
https://www.facebook.com/pages/Advanced-Alternative-Energy/277213435730720
“It is in our vital interest to diversify America’s energy supply — and the way forward is through technology.”
– President George W. Bush, 2007 State of the Union Address
Solarizing buildings answers some of these issues. There is a track record for real estate. Changes in valuation are handled on a regular basis. Any effect that adding Day-lighting, solar thermal ( air or water ) and PV (whether standalone or in combination) is a question of calculation.
Craig, you are doing a great job, keep up the good work.
It is my observation that the larger IPP’s have no problem obtaining capital, and seem to announce new projects on a regular basis. However the medium to smaller renewable energy developers, definitely have a hard time getting RFP awards, and PPA’s to qualify for project funding.
Craig, from my perspective your friend is right on her first point the inefficiency of the market. One thing that complicate things is that in general many of the investors are not too savvy about the renewable energy business and also they look for very high IRR’s which is fine as long as they are wiling to put some seed money to close some deals.
For those who look for shovel ready projects they must realize that in the same way that the VC’s who only invest in mezzanine and late round investments. They will get low returns, because other people have already made money out of it.
In the VC industry the people who make the money are those who started with seed money and then moved to Round A, B, etc. until they have a successful liquidity event. The same is true in renewable.
But the same logic happens for the people who want to develop clean energy projects. You need more than a Bus Plan, you need to show that you have something of value, it is required to show that you have done your homework. You need to show potential investors that you have secured land rights, have environmental, construction or interconnects permits or that you could if you have some seed capital.
Also need to show that the potential energy harvested in the project for the next ten to twenty years is going to show a substantial return to the investors even if the price of gas keeps dropping (so you must do a good simulation using the normal tools e.g. PV Stats, Polysn or other tool and a lot of spreadsheets under multiple scenarios)
If you want to make money co-develop the projects and be willing to pay for the services of people who truly help you to succeed in areas where you lack expertise.
I must commend and thank Mr. Graig Shields & 2Greenenergy Team in promoting, amplifying & disseminating information regarding Green Renewable Power & Technology systems. If we all emulate Mr. Graig Shields & 2Greenenergy Team & others in this field and make it work we will have a better world now and leave it for our children to enjoy too. I would like to get in touch with a potential capital investor in developing bio-fuel and extracting gold in a eco way. Thankyou. Luimack Johnson. Papua New Guinea.
Search Google for “combined wind and biomass proposed Blevins” to find the novel new approach I’m developing, then contact me if you would like further details.