Private Equity Smells Money in Europe's Renewables Subsidy Cuts
- Firms see opportunities in distressed clean-power projects
- Five EU countries have scrapped subsidies, 12 have reduced
An employee carries out maintenance work on heliostat panels at a Solar Thermoelectric Magaldi (STEM) pilot plant, operated by Magaldi Power SpA, in Buccino, Italy, on Monday, May 18, 2015. The project captures the energy of the sun which is transferred via the generation unit to heat retaining silica sand, producing steam that powers a turbine and is suitable for use in systems operating over a large temperature range.
Photographer: Alessia Pierdomenico/BloombergA handful of private equity firms are buying up troubled clean-energy assets, restructuring debts and whole projects in an effort to gain rich rewards from some of the industry’s riskier investments.
The efforts -- by funds including Cerberus Capital Management LP in New York, Oaktree Capital Management LP in Los Angeles and Zouk Capital LLP in London -- run against the trend in the private equity industry, which has scaled back work with renewables in the last year. While much of private equity has been crowded out of clean energy by more mainstream investors, those funds are quietly scavenging attractive returns.