Warren Buffet betting on renewables in Nevada
Ormat's Desert Peak 2 geothermal power plant, Nevada (source: Ormat Technologies)
Francisco Rojas
8 Oct 2014
In a recent article from the New York Times, Renewable Energy is gathering more interest from investors, and it seems like Warren E. Buffett wants to be part of the green expansion happening in the US.
Renewable energy has been on the rise in the last few decades. At first, they were seen as a niche and unviable market yet, now more interest from big investors is gaining traction.
In a recent article from The New York Times (NYT), it is stated that one of the leading investors in the US, the famous Warren E. Buffett is acquiring companies in the renewable sector. Two of these companies, NV Energy and PacifiCorp Energy, were acquired by him a few years ago looking to exploit the increasing profitability of green energy in California.
The NYT quotes, ““This is not a value play,” said Christine Tezak, managing director of research at ClearView Energy Partners, referring to Mr. Buffett’s normally conservative investing approach. “He’s looking at this as a way to participate in the structural shift taking place in the power and energy industry.””
This all boils down to the new reality for energy that is now present in California, which has “a multistate grid system that aims to ensure steady power despite the variable output of wind and solar — will create more customers for the new renewables as well as the considerable coal-generated energy of PacifiCorp.” according to NYT
This “multistate grid system” has taken a long time to complete, and now the situation is that green energy is turning into a desirable commodity for big investors such as Mr. Buffet.
The article posted is very lengthy and provides great insights. We recommend you to read it in full on the link below:
Source: Felicity Barringer for The New York Times Website
