Edward Zaelke Quoted by Daily Journal on Yieldcos’ Impact
For its article “Renewable energy shows maturity in 2014 as new investment structures gain ground,” Daily Journal quoted Akin Gump global project finance practice co-head Edward Zaelke on the growth of yieldcos (or “yield companies”) as a renewable energy finance model.
The article notes that yieldcos are created by packaging renewable energy projects, forming a company and taking it public. The vehicle gives investors steady dividends driven by the projects’ electricity sale contracts.
Regarding yieldcos’ impact, Zaelke said, “It has finally, after years and years...brought cheaper capital into the renewable energy business. It will drive the price of renewable energy up as yieldcos compete for projects, but over the long term it will allow the industry to be more competitive with other forms of energy, primarily fossil fuels.”