Our clients in the renewables space are overwhelmed with opportunity. They can choose from thousands of projects at different stages of development in a robust renewables asset acquisition/divestiture market. The only metric that counts is how much value they create by doing good deals. But what are the process goals that get high-return capital deployed as quickly as possible?
Out with the bad
Spending more time on a deal likely to work usually starts with spending less time on opportunities that will never get there. Each of our private equity clients has different screens depending on their strategy and their capabilities, but all find the right data and analytics can rapidly screen out off-strategy projects. Is a project jammed into the back of a filled interconnection queue? Will a 100 MW beast next door threaten solar capture rates at the pricing node? Orennia’s Ion platform can answer these questions in seconds instead of weeks.
Location, location, location
Future upwind projects threaten generation capability downstream, known as wake loss. Battery storage projects can overwhelm ancillary market depth. Too many solar projects result in negative pricing. All of these return-destroyers, and many more, are a function of economic parameters married to locational information. Orennia’s Ion is a geography-forward analytics platform that allows developers and investors to consider price, capacity, and volatility in the context of geography. Immediately and at scale.
Overpay for the right risks
Winning a deal at auction means paying more than competitors. Winner’s curse is built into a capital deployment strategy based on acquiring assets. But nobody builds a business by being the smartest person in the room without any assets. The way through this dilemma is to mindfully pay, and overpay, for the right risks.
Acquiring below intrinsic value doesn’t happen in the real world at scale. Creating value depends on picking the right risks to go long. Maybe you have a view on transmission buildout, market rules, interconnection queue reform, or technology paths. We can help you turn these views into strategies. Strategies into actions.
