Enel creates a Yieldco for U.S. renewable assets
Stillwater geothermal power plant by Enel (source: Atlas Copco)
Francisco Rojas
12 Feb 2015
Bloomberg: "Yieldcos are especially attractive to renewable energy producers because they offer these usually small and fast growing companies an accessible source of cheap capital"
Enel seems to be nearly done creating a Yieldco for its US green energy assets. The motivation behind this Yieldco is to tap a capital source at a much lower cost. Bloomberg details that “Enel SpA is putting the final touches on a yieldco that would hold its U.S. renewable energy assets, making it the latest power-plant owner to opt for a structure that frees up capital.”
This same source states that “Yieldcos are especially attractive to renewable energy producers because they offer these usually small and fast growing companies an accessible source of cheap capital to accelerating development while potentially replacing tax equity as tax incentives expire,” Moody’s Investors Service wrote in an Oct. 17 report.
Yieldcos are particularly attractive when interest rates and inflation is low, therefore the moment is clearly correct for Enel to be embarking on this venture.
To read more about this particular topic, please follow the link below:
Source: Bloomberg
