Business model

Panorama – RealPort AG report finds lack of oversight hampers business model innovation for European renewables

The “Tackling control issues in renewable” report, launched today (3rd February), finds that the unprecedented supply and demand crisis in European renewables has put an emphasis on the control of assets by investors and owners.

Left unchecked, asset owners have seen their options for portfolio growth increasingly restricted and, crucially, their desire to scale new business models thwarted.

Amid scarce assets and skyrocketing prices, business model innovation is seen by many as a necessity. Fund managers want to get involved earlier in the development cycle, taking higher risks in pursuit of better returns. Developers are looking to move towards Independent Power Producers (IPPs), retaining assets to take advantage of stable returns. Utilities and large financial players are acquiring smaller developers and IPPs, resulting in increasingly complex ownership structures.

In each of these cases, asset owners need both access to capital and the ability to maintain control over strategic decision-making. However, as the number of capital providers who want a say in how projects are built and managed increases, the potential for misalignment and conflict that impacts progress toward business goals also increases. .

In the report, RealPort, a digital brokerage platform, explains how to unlock “passive capital” from a wide range of small institutional investors and family offices who have yet to invest in wind and solar in the project level – and are willing to give up voting rights – will provide a solution to several emerging control challenges facing asset owners.

“While renewables is a very liquid market, asset owners bringing capital to the project level are too often forced to compromise on the control they have over their strategic decision-making,” Ekow said. Yankah, founder of RealPort. “RealPort’s goal is to help asset owners lift the handbrake by accessing a new source of passive capital that they can recycle into new projects, without ceding control to their co-investors. This allows them to be much more enterprising and nimble in seeking out opportunities to evolve the business model, which benefits these co-investors in the long term. »

RealPort’s platform, which aggregates passive capital from smaller institutions and family offices to meet the mezzanine and secondary financing needs of asset holders, is rapidly gaining momentum. Following the appointment of its independent Asset Selection Committee in December 2021, comprising industry experts Anthony Marsh (former Chairman of the Green Investment Bank Investment Committee), Dr Barbara Weber (bestselling author and manager partner infrastructure firm B-Capital Partners) and Gurpreet Gujral (CEO of Atrato Group and former SVP Green Investment Group), RealPort has, in its second phase, opened its platform to renewable investment managers, developers and committed utilities in wind and solar projects in Europe.

For more information :

Actual Port

Report “Solving Control Problems in Renewable Energy”