Izzet Bensusan, managing companion and founding father of Captona, a North American-focused funding firm that focuses on energy era and power infrastructure, was a visitor on The POWER Podcast. He may be very bullish on the renewable power trade for a wide range of causes.
For occasion, Bensusan mentioned renewable power is rising at greater than 20% all over the world as a result of firms behind the expertise are making it extra environment friendly, cheaper, and higher. He recommended new renewable era is being added, not due to particular incentives or sustainability angles, however somewhat, as a result of it makes financial sense.
When requested about promising alternatives within the renewable sector, Bensusan mentioned the repowering of wind farms is sensible as of late as a result of new expertise can enhance output whereas utilizing a lot of the identical infrastructure. He was additionally optimistic concerning the U.S. offshore wind market in the long run, however he didn’t count on it to take off within the subsequent three years.
Concerning different renewable assets, Bensusan mentioned photo voltaic initiatives are actually “mainstream” and financing has turn out to be “plain vanilla.” He mentioned, “That means, anybody and everybody can actually get capital to construct small, medium, or giant initiatives.” Community photo voltaic is rising too, and bankers—the individuals who present the financing—have gotten snug with the funding.
Bensusan expects a spike in new photo voltaic initiatives in 2019, primarily as a result of the funding tax credit score can have a step-down subsequent yr. Nonetheless, he has been within the trade lengthy sufficient to know that surprises occur commonly. This yr, rates of interest might present a shock. When charges go up, the leverage consider initiatives might get extraordinarily tight. “It’s going to be very distinctive to look at when that subsequent step-up occurs,” Bensusan mentioned. “I believe watching these markets carefully is essential for the renewable power market.”
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—Aaron Larson is POWER’s government editor (@AaronL_Power, @POWERmagazine)
The publish Insider Bullish on Renewable Energy Industry [PODCAST] appeared first on POWER Magazine.