The M&A Turf Battle Over Wind, Solar and Storage Projects [Special Content]

The Energy Gang

Wood Mackenzie

Alternative Energy, Tech News, 958784, Environment, Technology, Renewable Energy, Energy, Business, Sustainability, Wind Energy, Climate Change, Cleantech, News, Solar Energy, Innovation, News Commentary

4.6 • 1.3K Ratings

🗓️ 20 July 2021

⏱️ 14 minutes

🔗️ Recording | iTunes | RSS

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Summary

In March of 2020, Covid shut down economies, closed off supply chains, and sent unemployment to historic levels. No one knew what would come next for energy.

Oil prices went into negative territory. Industrial electricity use plummeted. Residential demand shot up. And there were big pipelines of renewable energy projects waiting to get built.

“I think we were all a little bit nervous about how COVID was going to affect all of the deal flow in the market,” says Britta von Oesen, a managing director at CohnReznick Capital.

Britta is the person at the table brokering tax structures and project sales that move money into renewable energy. So did Covid destroy her ability to get deals done?

“Honestly, it's gone a lot better than I would have expected,” she says.

M&A activity increased. And as 2021 kicked off, the M&A deals only accelerated. Most of the top independent wind and solar developers have been scooped up by utilities, private equity firms, oil majors, or bigger corporates. And the ones that haven't been acquired may be soon.

There is an intense turf battle over wind, solar and storage platforms in the US. So what is driving all this activity?

In this episode, brought to you by CohnReznick Capital, we speak with Britta Von Oesen about who's doing the acquiring, who's doing the selling, and what it all means for the growth of U.S. clean energy.

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Transcript

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0:00.0	This is a custom episode from Post-Script Studios and Wood McKenzie.
0:06.9	Many of us here in America are starting to shake off
0:09.5	our more than a year-long slumber, but it's important to remember just how drastically
0:14.6	things changed in March of 2020. COVID had shut down economies,
0:18.9	it had closed off supply chains, it sent unemployment to historic levels,
0:23.0	and no one knew what would come next for energy.
0:26.0	Oil prices went into negative territory, industrial electricity use plummeted,
0:30.2	residential demand shot up, and there were big pipelines of renewable energy projects
0:34.7	just sitting there waiting to get built.
0:36.7	I think we were all a little bit nervous about how COVID was going to affect
0:41.8	all of the deal flow in the market, and that's tax equity, capacity, if earnings are down,
0:47.8	how were people going to be able to get M&A deals done if we were all stuck behind our computer
0:52.6	and couldn't actually meet in person?
0:54.8	That's Bridevon Oson, she's a managing director with Cone Resonant Capital.
0:58.6	She's the person at the table brokering tax structures and project sales that move money into
1:03.7	renewable energy. I always joke in M&A deals there's a point where I like to lock everybody into
1:08.7	the same room and just hammer it out and get the deal done and we didn't have that ability during COVID.
1:15.3	I can imagine hammering out a deal over Zoom has a much different vibe to it.
1:19.8	Yeah, I can't lock the door. I can't keep people in the room together and force them not to leave.
1:25.2	So with no doors to lock, no paper to sign, no hands to shake,
1:28.7	did the financing momentum behind large-scale renewables get crushed by COVID?
1:33.0	Honestly, it's gone a lot better than I would have expected. People were creative and accommodating
	...

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