Clean Tech & Renewables Sector

During the past decade, an evolving competitive and regulatory landscape has emerged within the Clean Tech & Renewables sector.

Increased cost competitiveness of renewables versus traditional energy sources, higher demand for renewable energy resources, continued extensions of the production tax credit (PTC) and evolving tariff policies have all contributed to an improved outlook for the sector.  However, policy intervention remains a wildcard, one that remains a key area of focus for many investors in the sector.

Last year, global energy consumption increased by 1%, while renewables energy consumption increased by more than 12% year-over-year, driven mainly by Wind and Solar, which on a combined basis continue to represent most of the growth in renewables consumption.  While renewables currently represent approximately 5% of total global energy consumption, we continue to see significant opportunities for growth on the horizon, particularly as a growing pool of private equity, public-private partnership and corporate capital is allocated toward investments that fulfill an ESG-conscious mandate.  

Grid capacity and resiliency remains top of mind for many investors.  The ability to generate reliable sources of renewable energy to support growing global demand is more than an existential concern, particularly in the wake of natural disasters and other geopolitical events that have impacted grid operability.  We also see battery storage and microgrids as promising areas of opportunity, as the narrative shifts toward energy storage installations at customer sites.

In a sector where constant change is the only certainty, we help our clients build compelling narratives that educate and inform the audiences that matter. We are well acquainted with the institutional investors and sell-side analysts covering the space, along with the myriad legislative, regulatory and competitive factors that have the potential to impact valuation.