Business Tech

Clean Energy Investing Brings Renewable Returns

Investment in clean energy for the first fiscal quarter of 2014 is up more than 14 percent as compared to the corresponding time frame for 2013. According to a mid-April report by the online clean energy reporting service ClickGreen, investors poured $61 billion into clean and renewable energy projects during the first three months of 2014, compared to the $53.4 billion invested in 2013.

This upswing is good news for Russ Landon, founder and managing director of North River Capital Advisors, LLC, based in the greater Boston area.

“The traditional forms of equity financing for this sector will come back, if they are not already starting to,” Landon said, in reference to the improving performance of clean and renewable energy stocks over the last nine to 12 months. “The public markets have done well finally, and stocks in this sector specifically have done well – and that tends to be a good indicator of private financing opportunities.”

Landon himself has a 20-plus year track record in financing projects for the clean energy/renewable energy field, as robust activity in the clean energy sector in the mid 1990s captured his attention. In 2010, after directing the Sustainability practice at Canaccord Adams for 10 years, he founded the Clean Technology Group at KeyBanc Capital Market. After directing that division for two years, he decided it was time to hang out his own shingle. “I made the decision in the fall of 2012 that I wanted to do this on my own,” Landon said. “I wish I had made that decision ten years earlier.”

Currently, Landon is monitoring business developments across the clean technology field, included under the umbrella of what he defines as Energy and Resource Technologies. One important area is grid level storage – specifically in the storage of renewable energy for use in generating electric power after the sun stops shining and the wind stops blowing.

“The grid needs steady, predictable power, and what renewable energy sources such as wind and solar provide are unsteady and unpredictable power sources that are a challenge,” he said. Yet, in his mind, it isn’t a matter of “if” appropriate and affordable storage solutions can be found, but “when” the cost will be acceptable. When that happens, he wants to be there and ready to invest. “Storage has been challenging because it is hard to get down in cost enough to where it is economically viable. When it does, it will make an enormous difference in the acceptance of renewable technology because suddenly, it will enable renewables to be cost competitive with conventional forms of energy.”

Despite the challenges over the past 5 years or so, Landon sees investment in clean energy and renewable power sources as prudent. He points to statistics demonstrating that nearly 70 percent of all new power installations in the United States are some form of a renewable energy source. When compared to the rest of the current grid, he said that these new installations are still quite small. Yet, they represent a dramatic movement in terms of growth of the percentage of power coming from renewable sources. “If renewable energy continues to grow at current rates, it will surprise us all in 10 to 20 years in terms of its overall market penetration.”

“We have a huge energy infrastructure that needs to be replaced,” Landon said. “While you are not going to see a renewable-powered only economy anytime in our lifetime, you will see the continued growth of all forms of clean energy, and this will present continued opportunities for investors.”

Learn more about North River Capital Advisers, LLC, online at www.northriverca.com


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