High-profile investors secure exclusivity on advanced stage wind and solar projects throughout North America, at auction hosted by leading group of US renewables advisors
New York, June 18, 2019 - Two wind energy and five solar power projects, with a total capacity of over 1GW, have been auctioned off to investors at a unique event on the trading floor of the New York Stock Exchange.
The Project Sales & Cocktails event, co-hosted by FTI Consulting's investment banking subsidiary FTI Capital Advisors, Akin Gump Strauss Hauer & Feld LLP, DNV GL and Novogradac on Monday evening, brought together 150 senior leaders from the renewable energy industry, including major Independent Power Producers (IPPs) and developers, project owners, sponsors, fund investors and lenders in the US clean energy sector.
In an innovative auction format, project developers and owners of mid- and late-stage development assets offered up their wind and solar projects to indications of interest from the financial community and renewable energy investors more broadly. Winning bidders secured an exclusivity period in which to narrow purchase and process terms. No financial commitments were made on the evening, but a number of agreements of high strategic value were confirmed.
Exclusivity was successfully secured on:
- Four ITC-eligible utility-scale solar development projects, located in Michigan, Ohio, New Mexico and Texas, with a combined capacity of 571MW.
- A community rooftop solar scheme in Washington D.C., designed to support local residents.
- Two PTC-qualified wind energy projects, in Texas and California, with a combined capacity of 459MW.
Speaking following the auction, Chris LeWand, Co-Leader of FTI Consulting's Global Clean Energy Practice and a representative of FTI Capital Advisors, said: "The M&A market for North American renewables continues to thrive, but one of the core challenges the market continues to face is bridging the gap between project developers, owners and an increasingly diversified pool of financial and strategic investors."
"Simplifying and facilitating the acquisition process has long been an objective for the market, and this evening has been a highly successful experiment, combining the networks of four of the most prominent financial, technical and legal advisors in the sector. It has highlighted considerable ongoing appetite from the investment community for high-quality renewable energy assets - and we'll be watching with interest as discussions progress over the next month or so."
Daniel Sinaiko, Partner, Akin Gump Strauss Hauer & Feld LLP, added: "The number one question we get from clients is ‘how can we identify projects and developers to work with?' In looking for partners to help us answer this question, DNV, Novogradac and FTI are obvious fits."
"Leveraging our collective relationships at Project Sales & Cocktails was a highly effective tool for bringing stakeholders together to build rapport and exchange ideas in a fun setting. Hopefully the connectivity at the event brings our friends and clients closer together on the projects we profiled at the event, or perhaps on broader strategic opportunities."
The location of this event at the New York Stock Exchange is emblematic of the degree to which wind and solar projects have come squarely into the mainstream as an attractive asset class for equity investment.
Richard S. Barnes, Regional President, Energy North America for DNV GL said: "This is the first time such a diverse group of prominent industry players from the energy and finance community has been brought together for an event like this on the floor of the New York Stock Exchange. As an independent technical advisor at the center of the renewables industry, we see this as a way to move the market forward by creating new green investment opportunity and value for our customers."
"As the pool of renewable energy cash and tax equity investors continues to evolve due to market and tax law changes we are proud to be a sponsor of an event that successfully and efficiently brings together financing sources with project developers," said Stephen Tracy, a partner in the renewable energy practice of Novogradac. "With keen interest we look forward to seeing how successful this platform experiment will be over the next few months, as should be evidenced by the closing of successful transactions."
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About FTI Capital Advisors & FTI Consulting
FTI Capital Advisors provides private M&A, capital raising and strategic advice (including the issuance of fairness opinions) with a dedicated focus on the middle market in industries, including energy (including power, utilities, clean energy and oil and gas), telecom, media and technology, mining, healthcare, and real estate.
FTI Consulting's Global Clean Energy practice supports clients across the clean energy value chain, addressing the strategic, financial, operational, reputational, regulatory and capital needs of clean energy companies and their investors with a focus on wind, solar, biofuels/biomass, energy storage and emerging technologies.
For more information, please visit: www.fticonsulting.com/clean-energy
About Akin Gump
Akin Gump Strauss Hauer & Feld LLP is a recognized world leader in the development and financing of energy and infrastructure projects, with a particular focus on the renewable energy industry. Our dedicated projects team of more than 45 lawyers has broad global experience and is supported by the full-service capabilities of Akin Gump's 900 lawyers in 21 offices worldwide; it draws heavily upon the firm's leading practices in the areas of energy, private equity funds, mergers and acquisitions, tax and other practices. We regularly represent the foremost project sponsors and developers, commercial and investment banks and other financial institutions, private equity funds, investors, manufacturers, technology companies, contractors, tribal governments, sovereign nations and other participants in the sector.
About DNV GL
DNV GL is a global quality assurance and risk management company. Driven by our purpose of safeguarding life, property and the environment, we enable our customers to advance the safety and sustainability of their business. We provide classification, technical assurance, software and independent expert advisory services to the maritime, oil & gas, power and renewables industries. We also provide certification, supply chain and data management services to customers across a wide range of industries. Operating in more than 100 countries, our experts are dedicated to helping customers make the world safer, smarter and greener.
DNV GL delivers world-renowned testing, certification and advisory services to the energy value chain including renewables and energy management. Our expertise spans onshore and offshore wind power, solar, conventional generation, transmission and distribution, smart grids, and sustainable energy use, as well as energy markets and regulations. Our experts support customers around the globe in delivering a safe, reliable, efficient, and sustainable energy supply.
Learn more at www.dnvgl.com/power-renewables
Novogradac is a national public accounting firm that provides consulting, project finance, transaction advisory, tax preparation and audit services to the renewable energy industry. With over 600 professionals and partners serving clients from offices in more than 25 cities nationwide Novogradac serves clients in a broad range of industries with particular emphasis on tax credit financed developments in the renewable energy and affordable housing industries. Whether we are preparing a financial projection, a tax return or auditing a financial statement our 25-plus years of experience with tax credit financed developments gives us unique experience and insight into the issues that matter most to our clients.