While infra investors shouldn’t expect a repeat of the $5bn Equis Energy deal any time soon, they can look forward to a wealth of renewables opportunities. Each market poses its own challenges, though.
The 25-year vehicle is targeting £500m with a £750m hard-cap and is aiming for a gross IRR of between 6.5% and 7.5%. In addition, the firm has completed a landmark refinancing for a 64MW portfolio of subsidy-free Italian projects.
The government’s recently announced National Energy Guarantee could shorten contract duration, creating a risk-return profile closer to fossil fuel merchant generation, argues Maven Libera’s Mark Gemmola.