Q4 2022 - Alternative Energy Market Update

November 18, 2022

Despite a challenging macro environment, positive momentum driving the Energy Transition persists. The Inflation Reduction Act is estimated to significantly boost U.S. clean energy installations through 2030 compared to earlier estimates (+30% according to S&P), driven by the extension of existing tax credits and additional incentives for nearly every clean energy technology. Funds from the Infrastructure Investment and Jobs Act are also flowing to companies building out the U.S. battery supply chain - $2.8 billion was awarded to materials processing and battery manufacturing projects in October.

Activity in the capital markets is far more mixed. Public Cleantech equities are once again testing YTD lows after having briefly rebounded following the IRA passage in August. Alternative Fuels/RNG are a notable bright spot with most companies in that category trading up on the year after BP’s recently announced acquisition of Archaea. Private market valuations also remain high in light of inflationary pressures and rising rates due to the amount of dry power that still needs to be put to work by private equity and institutional investors. It’s a seller’s market for renewables developers with mature projects seeking sale or offtake.

Visit GreenFront’s Q4’22 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.