Is Terra Firma seeking a divorce from Everpower? Ohio cheers

What could this mean for central Ohio, where citizens are fighting Everpower from taking over (10’s of) thousands of acres for an industrial wind site?  Terra Firma appears to be tired of empty promises from Everpower. And, it is very interesting that Everpower believes that a yieldco could become the new sugar daddy. Why? Yieldco’s are structured to deliver dividends in a low interest-rate economy. However, in order operate properly, they require stability- renewables that are about to generate electricity AND  have long-term contracts to sell their power.  In Ohio, Everpower’s future industrial wind sites are tied up in litigation AND, as mentioned below, it has ZERO buyers for the future energy….

When EverPower Wind Holdings put out feelers this summer to gauge who might want to buy a wind farm, “yieldcos” didn’t even show up. Six months ago, that would have been unthinkable. Yieldcos are a relatively new game in the energy world. They are publicly traded companies that hold wind and solar assets, distribute most of their revenue to shareholders, and are predicated on continuously growing their holdings to increase those distributions…

Wind growth isn’t much of a question mark, said Michael Speerschneider, EverPower’s chief of permitting and public policy. The Clean Power Plan, the federal answer to climate change that mandates carbon reductions from power generators, will incentivize more wind development. The law, which is being heavily challenged in the courts, is set to go into effect in 2022….

EverPower sale coming soon

Mr. Spencer said he expects EverPower to be sold within the next six months.

It’s been six years since a London-based private equity firm, Terra Firma Capital Partners, bought a controlling stake. That’s reaching the top range of how long private equity funds hold an investment before looking for a payout.

Since 2009, EverPower has grown from being a startup with 62 megawatts of wind capacity installed to operating hundreds of turbines with 752 megawatts of capacity across five states.

It also has a pipeline of at least 13 wind projects that would more than triple its installed capacity if all are built. Mr. Speerschneider said all are in the “mid-to-late stages” with some still awaiting certain permits but none having secured long-term customers for their power nor the financing to build.

“In our evolution, it’s probably as good a time as any to go to a new owner,” Mr. Spencer said. “There’s no shortage of capital or equity to build. The sector is as attractive as it’s ever been.”…

Source: Market for wind firm has changed

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