Green Power – The Real Stranded Asset


By Paul Homewood

h/t AC Osborn


Perhaps Mark Carney should be worrying about the real stranded assets story.

GWPF have this report, originally from Bloomberg:

For investors in yieldco stocks, it’s been a quick and wild ride. Two years ago, yield companies like TerraForm Power Inc. and NRG Yield Inc. were the newest, hottest thing for energy investors — a way to make steady returns off the booming clean energy sector. Share values soared after they were spun off by parent companies eager to cash in. Today, those same parent entities have put as much as $26 billion worth of sales to their affiliates on hold after the market value cratered.

“Yieldcos are stranded right now,” said Ben Kallo, an analyst with Robert W. Baird & Co. in San Francisco. Given the drop in their values, yieldcos effectively have lost their sense of purpose, which was to use…

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