The New Energy Capital strategy exploits significant investment gaps in the renewable energy and distributed generation markets.  Most investments in these sectors have been channeled to new energy technology rather than proven generating assets.  Recently, a growing number of utilities and energy companies have invested in renewable energy projects, primarily wind farms. 

This cast of players leaves a substantial gap in the market between small, thinly capitalized technology and development companies, which are rarely able to finance the installation and operation of generating assets, and enormous resource and utility companies, which are too large to deploy efficiently the relatively small amounts of capital necessary to finance and operate these assets.  As a consequence, there is a shortage of capital for renewable energy and distributed generation projects, the vast majority of which have a capital cost of less than $5 million.

New Energy Capital’s strategy focuses on financing, building, owning, and operating assets.  The strategy requires:

• In-depth understanding of the sector to identify the most attractive of the many projects under development;

• Experience to skillfully execute deals, efficiently control transaction costs, and manage assets and operations; and

• Knowledge of policy dynamics to enhance the value of projects through intelligent application of state and federal incentives.

To take advantage of the current convergence of market forces, New Energy Capital has developed a range of resources and a differentiating strategy:

• Experienced management team;

• Deep industry network and source of deal opportunities;

• Technology and market diversification;

• Tight control of transaction and asset management costs; and

• Access to public incentives.

These resources and strategic focus will enable New Energy Capital to be successful in its approach to this sector.