Q1 2022 - Alternative Energy Market Update

February 15, 2022

In light of ongoing development challenges and uncertainty around federal policy, investment appetite for Alternative Energy remains strong. Last year, investors deployed $900 billion of capital toward Energy Transition and Climate Tech sectors and more is expected in 2022 despite recent market underperformance. Areas like Hydrogen, Electrification, and Alternative Energy Services/Infrastructure are front of mind for private equity and venture investors due to compressed returns in more “traditional” verticals like solar and wind.

On the solar and wind front, corporates signed a record number of PPAs in 2021 and near-term offtake opportunities are in high demand. Inflationary pressures and interconnection delays put a huge premium on late-stage de-risked development assets and many developers have been sent back to the drawing board to re-negotiate terms. We expect to see broadly rising PPA prices for the next couple of quarters as counterparties work through these challenges.

Visit GreenFront’s Q1’22 Quarterly Market Update for insight on these topics and more. It’s our way of helping readers to stay up to speed on topics like Capital Markets, M&A, Project Development, ESG, and Corporate PPA Activity. Don’t hesitate to reach out to our team with questions, comments, or any feedback you have.