Existing energy and resource efficiency infrastructure, the molecules and materials needed to build more of them, along with new chemistries to enable cleaner industrial and agricultural processes, have never been more valuable. That said, value and price are not always aligned, and pricing assets has never been more difficult. Systemic risks keep mounting: inflation, increasing credit costs (and decreasing availability), energy security, and of course a highly unpredictable war. However, one security pricing consideration that has received far less attention than it deserves is liquidity, and there is an interesting connection here to our space.
Private equity firms are eager to buy renewable utilities, and willing to pay what we consider to be high premiums on these assets. This suggests there is strong competition among private investors, and that publicly traded utilities with an integrated focus on renewables may see a dramatic rise in their valuations.
Find out more about how John and Greg are viewing these opportunities and the benefits they present to their portfolio.