Capital for new renewable energy technology limited outside wind and solar.
Muni purchase of renewable energy.
MA plans emissions 25% below 1990 levels by 2020 forcing closure of thermal power. Thermal power projects close at the end of their PPA.
Battery costs are expected to fall 40% to $200/kWh and BOS fall 25% by 2025.
Private markets overtaking public markets for finding growth. Leading potential PE investors. Most PE deals 1H18 were add-ons. Median time of angel & seed rounds 3 years. Medium seed rounds $2 MM. Pre-seed valuations $3.4 MM. Green bonds have raised $442 BN worldwide since 2013. MLP structure lost luster in renewableand energy markets. Expect 5 MM EV sold by 2019, 25% in the US, 1.6% US car sales. MA plans 400 EV charging stations in 5 years. Food waste $1.2 TN issue and challenge is “enormous”. Revenue Puts common in wind and thermal power applied to solar PV. Energy production insurance. Fuel cell incorporated into microgrids. Energy majors embrace future of microgrid. Primer on valuation:
1. Use peers with similar prospects for ROIC and growth
2. Use forward-looking multiples
3. Use enterprise-value multiples
4. Adjust the enterprise-value-to-EBITA multiple for non-operating items