Increased Investor Interest In US Renewable Energy Projects

As Biden takes over the presidency of the United States, a return to green initiatives are on the horizon. As such, many are looking towards the inevitable expansion within the renewable energy sector. This has led various companies showing interest in renewable energy enterprises across the US. The centre of attention being Texas and the en-masse wind power that is being cultivated and produced within the state.

Asset managers buy in

It is clear that policies will be reverted back to what was in effect post-2016 and the agenda will be furthered under a Biden administration. Greencoat Capital, a UK investment firm, has been eyeing investment opportunities over the last year and a half. In recent days, it has acted on this and acquired a 24% stake in offshore wind farms in Texas. The wind farms, made up of 4 offshore farms, are said to produce enough electricity to power the city of Houston for a year, or close to it. The latest investment by Greencoat Capital is valued at $160 million and has been absorbed by the initial principal investor of this project, RWE. RWE will continue to hold 25% of total investments, and are set to use the additional capital to expand and finance future investments relating to renewable energy. The majority stake of 51% is held by a subsidiary of Algonquin Power & Utilities Corp.

Greencoat Capital is the largest investor within the UK that focuses on global renewable energy. The proactive measures taken to invest within the States is a sign of things to come. The Democratic Party, with President Joe Biden at the helm, is an outspoken advocate of renewable energy and has highlighted the need for a transition within the energy sector. This has been met with growing sentiment that opportunities for investment in renewable energy will continue to grow. Although such news is welcomed, a dire warning against complacency on global economy from IMF Chief.

Future prospects of investments in renewable energy

Combating climate change is high on the agenda of the new political administration. A much-needed reboot of energy policies within the US is set to unfold, sparking wide-spread enthusiasm from clean-energy groups and investors alike. This might not please all groups, as many lobbyists will hope to limit the substitution of non-renewables for clean-energy. However, with a Senate that may well be able to make sweeping changes in the months to come, clean energy investments are set to perform well. Coupled with serious advancements in technological capabilities and a shift in the mentality of many companies as being a proponent for environmental change, it is only logical to assume that clean-energy ETFs will come to the fore.

One may well approach the shift in policies with caution as changes won’t happen overnight, but the general consensus is bright for the energy sector and the role that renewable energy will play in the years to come. Take a look at further news pieces, such as the latest on PNC Financial Services looking to buy BBVA in the US.

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