Clean Energy

The energy transition is happening and we’re taking part. In the U.S., and around the world, there is clarity and growing consensus around the need for clean energy solutions for our growing energy demand. Meeting that demand requires us to make clean energy more competitive, affordable and mainstream. Threshold Power is committed to that effort and has built an organization that grows and prospers from that concept.

Picture of Wind Turbine

Wind Power

The founders of Threshold Power have a long history of financing, managing and operating utility-scale wind energy assets. That experience is put to use for the acquisition and ongoing investment in wind power– a proven technology that made up 31% of all new generating capacity in the U.S. in 2011.

In the past ten years, installed wind power in the U.S. has grown ten-fold from 4.14 gigawatts in 2001 to 46.92 gigwatts at 2011’s year-end. This growth has been supported, in large part, by the Production Tax Credit (PTC), a federal incentive meant to level the playing field for wind power, and Renewable Portfolio Standards (RPS) in place in more than half of all U.S. states. At the end of 2011, 38 states had utility-scale wind power projects in operation.

Aside from the impressive increase in installed capacity, the U.S. has also seen wind power costs drop as wind turbine technologies have reached new tower heights, larger capacities and greater efficiencies. Wind energy is now one of the most cost-effective sources of new electricity generation and serves as a stabilizer in the energy mix hedging against the volatile prices of fossil fuels.  The American Wind Energy Association (AWEA) reports that wind power has been the source of 35% of new generating capacity on the U.S. grid since 2007 – twice what coal and nuclear added, combined.

Resulting from this growth is a significant fragmentation of ownership across dozens of companies. Only seven companies own more than 1.5 gigawatts – a number we believe to be needed to achieve economies of scale. Threshold Power is at the forefront of a period of consolidation in the industry.

AWEA | U.S. Department of Energy


Picture of Maintenance on Solar Panel

Solar Power

The predictability of the solar resource and advancements being made in the solar power industry make it an attractive investment and acquisition space for Threshold Power.

The Threshold Power team has significant experience with complex financing structures and operating solar power projects. As a result, solar power will be a sought after opportunity as the industry, much like the wind power industry, heads toward a period of consolidation and increased cost competitiveness.

Utility-scale photovoltaic solar and concentrating solar power (or solar thermal) projects are in place across the U.S. in growing numbers. The Solar Energy Industries Association reports that in 2011, the industry saw a 109% growth over the previous year, installing 1,855 megawatts of new capacity.

SEIA | U.S. Department of Energy


Other

Threshold Power’s interest in clean energy is not limited to a single technology. We will be highly selective, but will pursue acquisitions strategically and opportunistically in wind power, solar power, hydropower, biomass, geo-thermal and natural gas.

Beyond the criteria of being a clean energy source, Threshold Power will focus on acquiring projects that have predictable revenues, dependable cash flows and solid operating performance.