Yieldcos To Drive Solar Power Growth Globally, Deutsche Bank

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

A report issued by Deutsche Bank last month noted that solar power yieldcos will play a major role in driving revenue and profit growth for project developers around the world.

Abengoa Solar Parabolic TroughThe Deutsche Bank investment note stated that solar power stocks have already outperformed the S&P Index by 20-25% this year and are expected to maintain the positive momentum for the rest of the year, with Yieldcos playing an important role in this regard.

Yieldcos, especially in emerging markets like India and China, will play a crucial role in driving the financial growth of solar power companies, the investment note read. Yieldcos have become common in developed markets like the US and Europe but emerging markets like India, China, South Africa, and Chile are yet to adopt this business practice of floating separate yieldcos.

Yieldcos help project developers negotiate power purchase agreements at lower rates as parent companies can unlock additional value of yieldcos by getting them listed on stock exchanges. Such prospects can help distressed companies, like several Chinese solar modules manufacturing companies. These companies have set large-scale solar power projects which can be packed off into a yieldco and listed on stock exchange to earn additional revenue and de-stress their balance sheets.

Image Credit: Abengoa Solar

Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Latest CleanTechnica TV Video

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
Thank you!

CleanTechnica uses affiliate links. See our policy here.