- NRG Energy (NRG +0.5%) is seeing “robust engagement from a variety of potential co-sponsors or sponsors” for its renewable energy units, Senior VP of renewables Craig Cornelius tells Bloomberg, a week after unveiling plans to shed as much as $4B of assets, including a stake in NRG Yield (NYLD +0.5%).
- “It has been essential for this platform to be embedded within NRG to become what it has become now, but it doesn’t necessarily rely on being embedded within NRG going forward,” Cornelius says.
- While NRG's renewables division recently has been a prime growth unit for the company, yieldcos have amassed little equity in the public markets but a large and deepening pool of buyers covets the assets they own: wind and solar farms that benefit from long-term contracts with utilities.
- NYLD’s “asset quality and the profile of the assets themselves are as competitive as any,” says Avondale Partners' Michael Morosi. “But a yieldco is measured by the health of its sponsor. NRG has its fair share of issues and has backpedaled from its renewables commitment at times."
- Now read: Avangrid, Inc. 2017 Q2 - Results - Earnings Call Slides
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