An overview on the long-term asset ownership model of the YieldCos

An overview on the long-term asset ownership model of the YieldCos Stillwater geothermal plant, Nevada (source: Enel)
Alexander Richter 10 Dec 2015

A recently white paper, published by U.S.-based Marathon Capital looks at the long-term asset ownership model of YieldCo and the outlook for such structures for renewable energy companies.

An equity firm based out of the U.S., recently published an interesting paper on “The Future of the YieldCo”.

YieldCo companies have popped up over the past few years and have changed how the renewable energy industry has managed its ownership model for long-term assets. But there was a bit of a “Summer Shock”, during which YieldCo shares fell by 50% from the market peak, has produced widespread investor concern over the function, transparency and durability of these investment vehicles.

Enel Green Power set up a yieldco for its U.S. renewable assets, we reported on that.

In a White Paper published by Marathon Capital, the authors are looking at  seeks to “demystify the future of the YieldCo with the overarching goal of exploring how M&A trends in the renewable energy industry continue to be impacted by their emergence:

  • The YieldCo Primer describes YieldCo fundamentals, organizational structures, history and investor base
  • The Summer Shock analyzes key drivers behind the summer 2015 market crash
  • The Accretive Acquisitions Review summarizes the history of YieldCo acquisitions, explores their acquisition cost of capital, examines the flaws in current acquisition reporting and outlines recommendations for improving acquisition transparency
  • The Future of the YieldCo presents analysis on the long-term outlook for YieldCos and their position in the renewable energy asset M&A universe

To download the white paper, visit the website of Marathon Capital (link below)

Source: Marathon Capital