Financing markets for renewable energy rebound, tax equity could top 2019

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A wind project in South Plains, Texas. Tax equity investing in wind and solar facilities in the U.S. is on track to be between $15 billion and $16 billion in 2020.Source: Vestas Wind Systems A/S

Despite hitting a snag earlier in 2020, renewable project and acquisition financing seems to be healthy, with the tax equity market expected to grow by $3 billion over 2019 and capital markets “flush with liquidity,” according to investors and developers at the virtual REFF Wall Street, which ran from Sept. 9-10.
“There was certainly a big disruption back in March and April, so we had to be patient,” said Bernardo Goarmon, CFO and executive vice president of finance at EDP Renewables North America LLC, speaking on one panel. “Back in March there was a perfect storm, certainly, so what we saw in the capital markets and what we saw in terms of the rush on liquidity was unprecedented.” Now, however, “capital doesn’t seem to be scarce.”
Despite uncertainty in March and April, Invenergy LLC managed to “close a couple of significant transactions” during those months, Meghan Schultz, senior vice president of finance and capital markets at Invenergy, said. “Since then we’ve continued to be able to raise capital.”
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