Enerdatics

Are EV/EBITDA Multiples Declining for Large Renewables Deals? Here’s What Investors Should Know 🌍💼 Enerdatics’ latest insights reveal a notable shift in valuations for billion-dollar renewable deals since the start of 2021. Here’s the breakdown: 📉 Between Jan 2021 and Sep 2023, six major renewables deals commanded EV/EBITDA multiples above 20x—two even exceeded 30x. Fast forward to Oct 2023 - Sep 2024, only one deal surpassed the 20x mark, with most deals now trading between 14x-16x. What’s driving this trend? Rising interest rates are reshaping the landscape. As financing costs climb, corporate valuations are tightening, turning these platforms into value-accretive opportunities for cash-rich investors. 📊💰 In this high-interest rate environment, success depends on strategic adaptation and thoughtful capital deployment. What’s your perspective on this trend? How can investors thrive in a lower multiple market? Share your insights in the comments below! 👇 Want access to exclusive data and forward-looking analyses on the renewable market? Connect with us today! #RenewableEnergy #CleanEnergyInvesting #EnergyTransition #SustainableFinance #EnergyInvestments #PrivateEquity #GreenInvestments #InterestRates #RenewablesMarket

Are Pre-NTP Solar Assets the New Sweet Spot for Private Equity M&A in the US? Here is What We Have Uncovered🌞 🔍 Key Insight: Recent analysis at Enerdatics shows a shift in private equity (PE) strategies—interest in operational and in-construction solar assets is cooling, while deal activity for pre-NTP (Notice to Proceed) projects is rising. So, what’s driving this new wave of PE interest? Here’s the inside scoop ⤵️ 📈 Supply chain issues and elevated capital costs are leading to developers charging hefty premiums for assets at NtP or lifecycles post that, widening the bid-ask spread. 🌱This is spurring PE firms to shift their focus to acquiring projects earlier in the development cycle, as they anticipate better returns through an entry at the mid-stages of development and a potential farm down/exit post-commissioning. What’s Your Take? Have you noticed this trend in your industry? Share your thoughts below! Looking for insights like these? 👉 Let’s connect and explore how Enerdatics can support your energy transition goals! #PrivateEquity #SolarEnergy #MergersAndAcquisitions #RenewableEnergy #EnergyTransition #SustainableInvesting #CleanEnergy #SolarInvestments #PETrends #EnergyFinance #InfrastructureInvesting #RenewableInvestments #NetZero #ClimateFinance

The Insights You Need: Weekly Energy Recap! 💼 Solar M&A Developer Premiums in US: Analyze Optimal Entry and Exit Multiples for Under-Development Projects 🔍 https://lnkd.in/gkTzPhza What’s Driving ~200% y/y Growth in the UK’s Corporate PPA Market in 2024? 📈 Enerdatics Uncovers the Trends Behind This Surge! https://lnkd.in/g-bRpnaE 🌊 What Makes Brookfield’s €2.1bn Bet on UK Offshore Wind Such a Smart Move? Here’s the Inside Scoop 🔍 https://lnkd.in/gQ94FSgn 🌱 How Are Tax Credits Reshaping the Future of US Hydrogen? https://lnkd.in/gyDwPnkn #EnergyRecap #Renewables #MergersAndAcquisitions #HydrogenEconomy #Taxequity #CleanEnergy #GreenEnergy #EnergyTransition

🌱 How Are Tax Credits Reshaping the Future of US Hydrogen? In our latest collaboration with Alexander Economides, we explore how the new 45V and 45Q tax credits are set to redefine hydrogen project economics in ways no one saw coming. But just how much can these credits cut costs, and what does it mean for industry giants like ExxonMobil and Air Products? Find out why these tax incentives are sparking a fierce industry debate and changing the profitability game for green hydrogen projects. Curious? Dive into the details to see what's really at stake! #HydrogenEconomics #Renewables #45V #45Q #CleanEnergy #EnergyTransition #NetZero #MAndA #EnergyPolicy #TaxCredits #enerdatics #cleanenergy #alternativeenergy #energytransition #renewableenergy #solar #wind #sustainability

🌟 Happy Diwali from Enerdatics! 🌟 Wishing you a Diwali filled with joy, prosperity, and light. May this festival bring new beginnings and happiness to all! ✨ #HappyDiwali #FestivalOfLights

🌊 What Makes Brookfield’s €2.1bn Bet on UK Offshore Wind Such a Smart Move? Here’s the Inside Scoop 🔍 Brookfield Asset Management just invested €2.1bn for a 12.5% stake in Ørsted's 3.5 GW offshore wind portfolio via its $30bn Infrastructure Fund V. Why target offshore wind in today’s challenging economy? Here’s what makes this portfolio a winner: 💵 High Revenue Potential: Three-quarters of these assets enjoy strike prices above €170/MWh, positioning them at the top of the revenue curve. 🔒 Long-Term Cash Flow: Backed by Contracts for Difference (CfDs) with ~10 years more of guaranteed revenue. 🌱 Solid Maturity: At 5 years old, this project brings proven operational capability, offering stable performance These factors make Brookfield’s move both strategic and timely as rising interest rates and supply chain issues have recently challenged new developments globally. This deal also diversifies Brookfield’s solar and onshore wind-weighted portfolio, supporting its goal to hit a 17% IRR for the Renewable Power and Transition division. 💬 What’s your view on Brookfield’s strategy? Drop your thoughts below! 📊 Curious about where the offshore wind market is headed? Connect with us to access exclusive data and insights that can power your next move! #RenewableEnergy #OffshoreWind #SustainableInvestment #BrookfieldAssetManagement #Orsted #GreenEnergy #InfrastructureInvestment #EnergyTransition #PoweringTheFuture #CleanEnergyInnovation #NetZero #ClimateAction

What’s Driving ~200% y/y Growth in the UK’s Corporate PPA Market in 2024? 📈 Enerdatics Uncovers the Trends Behind This Surge! This month, the UK's corporate PPA market hit a milestone. Quinbrook secured a deal with Tesco for power from the 374 MW Cleve Hill solar project—the largest solar corporate PPA in UK history. 🌍 Impact? UK’s cumulative corporate PPA capacity is now nearly 1 GW, marking a remarkable 180% increase from last year’s total. 💡 Top Factors Behind the Surge: – Falling Government Support: Revenue from CfD programs is shrinking, pushing developers toward PPAs for reliable revenue streams. – Price Volatility: UK power prices remain volatile, driving corporates to PPAs for steady, long-term supply. 🚀 Key Players Leading the Charge: – Tech giant Amazon leads the charge, securing power from offshore wind projects owned by ENGIE and Iberdrola. – Retail giants like Sainsbury’s, Coveris, and Co-operative Group are closing in on PPAs, targeting <50 MW deals with companies like AlphaReal, Zestec Renewable Energy, and Capital Dynamics. With corporate PPAs surging across Europe, the UK is positioned to lead the charge, paving the way for a dynamic, corporate-backed energy transition in the coming years. 💬 What’s your take on the rise of corporate PPAs in the UK? Share your thoughts in the comments! Looking for more data on the European PPA market? Contact us for exclusive insights! 🔍 #CorporatePPA #UKEnergyMarket #RenewableEnergy #CleanEnergy #SustainableFuture #EnergyTransition #SolarEnergy #WindEnergy #Sustainability #EnergySecurity #NetZero #GreenPower #ClimateAction #PPAMarket #ENGIE #iberdrola #capitaldynamics

💼 Solar M&A Developer Premiums in US: Analyze Optimal Entry and Exit Multiples for Under-Development Projects 🔍 Enerdatics’ analysis of developer premiums for M&A deals involving utility-scale solar projects in the US, spanning 2021 onwards, reveals critical insights across stages: -- Early-stage | Entry Multiples: 1-2¢/Wdc 🌱 In early-stage acquisitions, developers such as CS Energy and Redeux Energy secure fees averaging 1-2¢/Wdc. Although geographical factors have a limited impact, projects with PPAs can command premiums of up to 50% higher due to enhanced revenue stability. -- Late-stage | Premiums Rise to 3-5¢/Wdc ⚡ Late-stage assets closer to grid connection attract premiums of 3-5¢/Wdc, primarily from private equity-backed firms such as Matrix Renewables and Adapture Renewables, Inc.. Regional demand influences valuations, with ERCOT projects typically rated lower than those in CAISO or PJM, where interconnection challenges increase premiums. Projects with long-term PPAs can command premiums of 7-8¢/Wdc. -- Ready-to-Build | Premiums Surge to 8-10¢/Wdc 🚀 At the ready-to-build phase, valuations spike to 8-10¢/Wdc, a 400% increase compared to early-stage entry multiples. Projects with PPAs and construction authorization can command premiums up to 11-12¢/Wdc, especially if construction financing is secured. 🌞 As developer premiums escalate, understanding these benchmarks is essential for strategic M&A. 💬 What do you think? Share your thoughts in the comments! 👉 Looking to boost your next big move in renewables? Connect with us for data-driven insights that empower smart decisions! #SolarEnergy #RenewableEnergy #SolarM&A #DeveloperPremiums #EnergyTransition #InvestmentInsights #PrivateEquity #CleanTech #GridConnection #SustainableInvesting #EnergyStorage #MergersAndAcquisitions #PPAs #CleanEnergyFinance #USSolarMarket #SustainableDevelopment

The Insights You Need: Weekly Energy Recap! Can PJM and MISO's Data Center Boom Challenge ERCOT's Dominance in the US Corporate PPA Market? Enerdatics Reveals Key 2024 Trends https://lnkd.in/gv2b5rQA Is KKR’s move into US BESS Sparking Investor Interest as $6bn in Debt Floods the Market? Here’s What We’ve Found https://lnkd.in/g93_ZzCx Opportunity of the Week: 317 MW Solar + BESS Portfolio for Sale in Spain – Don’t Miss This Chance! https://lnkd.in/g5jicgWx Plus Power Raises $2.2bn in the Last 12 months! Enerdatics Uncovers Their Debt + Tax Equity Strategy in Driving US BESS Development https://lnkd.in/gtiKMFYr #EnergyRecap #Renewables #MergersAndAcquisitions #HydrogenEconomy #Taxequity #CleanEnergy #GreenEnergy #EnergyTransition

💥 Plus Power Raises $2.2bn in the Last 12 months! Enerdatics Uncovers Their Debt + Tax Equity Strategy in Driving US BESS Development 💡 Since Oct'23, Plus Power has raised a staggering $2.2bn to fuel its battery storage expansion across the US. Their strategic shift? It’s a game-changer. Here’s our breakdown of their approach: 🔋 Tax Equity: The Key to Unlocking Liquidity In 2024, Plus Power secured $500mn through four tax equity deals, focusing on projects close to completion—an attractive proposition for investors seeking predictable tax credit returns. 💰 Debt: Powering Ready-to-Build Projects With over $1.5bn in debt raised since October, including a recent $133mn loan for a Massachusetts BESS project, Plus Power is laser-focused on financing ready-to-build (RtB) projects, enhancing their appeal to investors. 🔥 Why This Matters: As the US BESS market heats up, Plus Power’s smart use of tax equity and debt allows them to scale rapidly, despite the macroeconomic headwinds. 👇 What’s your take on their strategy? Let’s dive into the discussion in the comments! #BatteryStorage #RenewableEnergy #EnergyStorage #TaxEquity #DebtFinancing #CleanEnergy #BESS #EnergyTransition #SustainableInvesting #ProjectFinancing #PlusPower #EnergyInnovation #GreenEnergy #ClimateAction #InvestmentStrategy