Edward Zaelke Quoted by SNL Financial on Yieldco Concerns

SNL Financial, for its article “Amid sector expansion, industry leaders express concern over future of the yieldco,” quoted remarks made by Akin Gump global project finance practice co-head Edward Zaelke at the American Wind Energy Association’s Wind Energy Finance & Investment Seminar, held on October 20-21, regarding mounting concerns as the yieldco market grows.

Zaelke noted that, while yieldcos are “a great product” because the structure brings a significant amount of capital into the energy industry, investors are facing a range of concerns regarding the structure, such as the sector’s ability to expand, potential impact of rising interest rates, potential extension of the federal production and investment tax credits and the necessity of global diversification.

Others involved are concerned about availability of quality projects and the possibility that there would be more yieldcos in the market than investor demand for them, Zaelke noted.