The Energy Gang
The Energy Gang
Wood Mackenzie
YieldCos: Understanding the Renewables Financing Bubble
39 minutes Posted Oct 18, 2015 at 12:55 pm.
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When a slew of leading developers started forming YieldCos in 2013, they were hailed as a revolution in renewable energy financing. Not so much anymore.
After enjoying a long surge in stock pricing, YieldCos have come crashing down -- some falling as far as 50 percent in value since July. Why did they all see such a dramatic reversal all at once? Is it that YieldCos are inherently risky? Or was there just an irrational exuberance that has leveled out?
We'll answer those questions in this episode. We talk with finance expert Tom Konrad about how YieldCos are structured, why they were overvalued, what a market correction looks like, and whether they still represent the future of financing renewable energy projects.
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