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Wed, January 22, 2025

US clean power groups turn to longer deals to finance growth


Published on 2025-01-22 12:00:49 - Reuters
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  • A buoyant tax credit market, long-term partnerships and financial hedges are allowing U.S. clean power developers to mitigate the impact of high interest rates.

The article from Reuters discusses how U.S. clean power companies are increasingly turning to longer-term power purchase agreements (PPAs) to finance their growth. These contracts, which can last up to 20 years, provide the stability needed for financing large-scale renewable energy projects like solar and wind farms. The shift towards longer deals is driven by the need for more predictable revenue streams, especially as the cost of capital rises and traditional financing becomes more challenging. This trend is also influenced by corporate buyers seeking to meet their sustainability goals with more certainty over energy costs. Companies like NextEra Energy, AES Corp, and Clearway Energy Group are highlighted as examples of firms engaging in these extended contracts, which not only help in securing financing but also in managing the intermittency of renewable energy sources through better planning and integration with energy storage solutions.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/energy/us-clean-power-groups-turn-longer-deals-finance-growth-2025-01-22/ ]
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