The Muscle Car Of Energy Efficiency

Tom Konrad CFA Disclosure: I am long TSX:PRI / PENGF. The poster child of energy efficiency has long been changing a light bulb.  First, it was swapping out an incandescent for a compact fluorescent, now the swap is to an LED.  Changing a light bulb is a small step that anyone can take, and it’s so cost effective that it can pay for itself in months if the bulb is used frequently. This is a good example of household energy efficiency measures: a small action requiring a limited investment that anyone can take that pays back quickly....

Western Wind & Brookfield: Time To Declare Victory and Go Home

Tom Konrad CFA Yesterday, I tendered my shares of Western Wind Energy (TSX-V:WND, OTC:WNDEF) to Brookfield Renewable Energy Partners' (TSX:BEP.UN, OTC: BRPFF) extended offer for Western Wind at C$2.60 a share.  This is despite the fact that I think (and was even quoted in a Western Wind press release) saying Western Wind is worth more than C$2.60. Two things have changed.  After conversations with other investors, Western Wind CEO Jeff Ciachurski, and a representative of Brookfield, as well as reading some evidence of extremely bad governance in Western Wind's Q3 2012 filing, I no...

My Yieldco Raised Its Dividend With This Weird Trick

Tom Konrad CFA Clean energy yieldcos buck the general trend by paying out a large proportion of cash flow to investors, and rapidly increasing their dividends at the same time.  The key to this trick has been their rapidly appreciating stock prices. High yield companies generally grow slowly, while high growth companies have low dividend yields. Normal companies grow by investing some profits in new business opportunities.  Early stage growth companies typically retain all their earnings to invest in new business.  More mature companies have fewer opportunities, and so share a larger proportion of...

Focus On Clean Power Income Trusts

Last week, Tom brought you a piece on the Algonquin Power Income Fund (AGQNF.PK), in which he opined that shift in investor attention away from capital gains toward yield might eventually provide a catalyst for the prices of yield-focused securities such as income trusts to rise. So-called utility trusts, or income trusts where the underlying corporation is engaged in utility activities such as power generation, are a common feature of the Canadian income trust sector (the mother of all income trust sectors). A sub-set of utility trusts is the clean power utility trust, where the power generation...

Northland Power’s Solar-Backed Bond

New Canadian Climate bond: Northland Power releases a pretty big ABS - CA$232m (US$206m) - backed by solar projects with proceeds for renewables. 18-year tenor, 4.397% coupon, BBB. Securitisation key future area for green bonds.

Where’s Western Wind Energy’s Tax Grant?

Tom Konrad CFA  On March 22, Western Wind Energy (TSX-V:WND, OTC:WNDEF) applied for a $90,556,707 tax-free 1603 grant from the US Treasury on behalf of the completed 120MW Windstar project.  The press release stated that the grant is subject to approval by the Treasury and payable within sixty days. The Windstar Wind Farm. Photo credit: Western Wind Energy It’s now more than three months later, and no tax grant.  The stock is down 24% since May 22, when the grant was expected, but management remains confident they will get...

Buying Opportunity at Renewable Energy REIT, Courtesy of Disgruntled Shareholder

Tom Konrad CFA Power REIT (AMEX:PW) aims to be the first renewable energy infrastructure Real Estate Investment Trust (REIT). The Renewable Energy REIT Renewable energy advocates have been calling for a change in the tax laws to allow renewable energy within the REIT structure.  A REIT is allowed to pass profits directly through to investors.  These profits are not subject to double-taxation like most corporate profits.  Owning shares of a renewable REIT would be much like owning a slice of a wind or solar farm.  This would open up the renewable energy investment opportunity to everyone, not just...
Power production from wind and solar

List of Power Production Stocks

Alternative energy power production stocks are companies whose main business is the production and sale of electricity from alternative energy installations, such as solar farms, wind farms, hydroelectric generators, geothermal plants, cogeneration facilities, and nuclear plants. This list was last updated on 9/11/2020. 7C Solarparken AG (HRPK.DE) Acciona, S.A. (ANA.MC, ACXIF) Atlantica Yield plc (AY) Algonquin Power & Utilities Corp. (AQN, AQN.TO) Avangrid, Inc. (AGR) Bluefield Solar Income Fund Ltd. (BSIF.L) Boralex (BLX.TO, BRLXF) Brookfield Renewable Partners L.P. (BEP) Capital Stage AG (CAP.DE) Edisun Power Europe AG (ESUN.SW) Elecnor, S.A. (ENO.MI) Foresight Solar Fund plc (FSFL.L) Global X YieldCo ETF (YLCO) Greencoat UK Wind PLC (UKW.L) Innergex Renewable Energy Inc. (INE.TO,INGXF) John Laing Environmental Assets Group Limited...

Power REIT: Light At The End Of The Tunnel?

Tom Konrad CFA It Could Have Been The First Yieldco Light at the End of the Tunnel photo via BigStock I first became interested in Power REIT (NYSE MKT:PW) in 2012 because of the company's plans to become what would have been the first US-listed "yieldco," i.e. a clean energy power producer paying a high level of reliable dividends to investors.  The company was an infrastructure Real Estate Investment Trust (REIT) with a single asset: its subsidiary, Pittsburgh & West Virginia Railway (P&WV) which owned 122 miles of track leased to Norfolk Southern Corp. (NYSE:NSC), which had in turn subleased the track...

Another Look at the Algonquin Power Income Fund

Tom Konrad, Ph.D., CFA The Algonquin Power Income Fund (AGQNF.PK) has been one of my star performers in an excellent year.  Is it still a good investment at these prices?  Since I recommended the Algonquin Power Income Fund (AGQNF.PK/APF-UN.TO) in January as a renewable energy income stock for 2009, the company is up 69%, in addition to the C$0.02 monthly dividend, worth approximately another 8% through August on the US$1.82 purchase price, making it the second-best performing of my ten picks (after Cree, Inc (CREE).)  However, since the major basis for my recommendation at the time was the...

Abengoa Seeks Insolvency Protection

Jim Lane In New York, NASDAQ shares in Abengoa SA (ABGB) plunged 49% in Wednesday trading after the embattled renewable energy developer said it would seek bankruptcy protection as it seeks to reorganize nearly $9.4 billion in debt. The protective filing was announced after an expected infusion of nearly $300 million from Spanish steelmaker Gonvarri did not materialize. The company’s debt had been previously downgraded to a B3 rating by Moody’s, six rungs on the ladder beneath investment grade. Last week, Moody’s described the company’s cash reserves as “insufficient” and expressed that asset sales and a round of...

Power REIT Loses; What Now?

Tom Konrad CFA On April 22nd, the court ruled against Power REIT (NYSE:PW) in the summary judgement phase of its litigation with Norfolk Southern Corp (NYSE:NSC) and Wheeling and Lake Erie Railroad (WLE).  At issue were if NSC and WLE were in default on a lease of 112 miles of track, and a number of claims surrounding the lease, and if they owed Power REIT's legal fees under the lease. Had power REIT prevailed on any of a number of counts, it could have been worth as much as $15 dollars a share to Power...

One Week, Three YieldCo Deals. Are More Buyouts on the Horizon?

by Tom Konrad, Ph.D., CFA It's been a busy several days in the YieldCo space. On February 5, 8point3 Energy Partners (NASD:CAFD) announced an agreement to be acquired by an infrastructure investment fund managed by Capital Dynamics. While I was still writing an article on why the sale price was at a virtually unheard of discount relative to the stock market price, two more YieldCo deals were announced: NRG Energy (NYSE:NRG) agreed to sell its sponsorship stake in NRG Yield (NYSE:NYLD and NYSE:NYLD/A) to Global Infrastructure Partners, and YieldCo TerraForm Power (NASD:TERP) made an offer to buy out Spanish YieldCo Saeta Yield (Madrid:SAY) at a 20 percent...

Brookfield Renewable Energy Likely To Vote Against Western Wind Management in Proxy Battle

Tom Konrad CFA When it emerged that Brookfield Renewable Energy Partners (“Brookfield”, TSX:BRP.UN, OTC: BRPFF) had acquired approximately one sixth of Western Wind Energy’s (TSXV:WND, OTC:WNDEF) stock last Thursday from Western Wind’s largest institutional shareholder, Goodman & Company, investors cheered. The transaction was seen as a signal that Brookfield intends to bid at least C$2.25 for Western Wind in its upcoming sale, and so the company’s stock has been trading for slightly more than C$2.25 since the announcement. Despite this, the Brookfield/Goodman transaction may not prove to be a good deal for Western Wind’s other shareholders.  Goodman had not...

Valuing the Boralex Power Income Fund Buy-Out

Tom Konrad, CFA Boralex Inc. made an offer to buy out the Boralex Power Income Fund on May 19.  The price is reasonable.  Boralex (BLX.TO, BRLXF.PK) announced on May 2 that it would offer C$5 per share in convertible bonds for all outstanding shares of the Boralex Power Income Fund (BPT-UN.TO, BLXJF.PK) that it did not already own in an acquisition approved by both boards.  As usual with mergers, the Boralex Power Income Fund's ("the Fund's") unit price jumped from C$4.61 to C$4.90 the next day, but then if started to fall back as people had...

CBD Energy and SFC Smart Fuel Cell Look Promising

From Small Fries to Big Shots? (Pt. 2 of 2) Bill Paul Here now are two more small alternative energy companies, both of which look to be just starting to hit their stride. How far they'll go only time will tell, but each seems to warrant a closer look. Take note: like the vast number of other pure-play alternative energy firms with intriguing growth prospects, neither of these is U.S.-based. Rule of thumb: whether you're a big institutional or small individual investor, to succeed in alternative energy, you must scour every corner of the earth. First up: CBD Energy,...
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