![]() ![]() In the U.S., dozens of renewable-power developers have increased prices they are charging for electricity and rewritten contracts to try to recoup costs.įrench power company Engie has raised many of its wind- and solar-power contract prices in the U.S. Some of the worst-hit companies started big, expensive projects before pandemic supply-chain bottlenecks helped send the cost of materials such as steel soaring, and interest-rate increases made financing more expensive. “I think the transition to a more ESG, solar, wind et cetera world is going to take a lot longer," said Jeffrey DiModica, president of Starwood Property Trust, during an earnings call this past week.Ī big chunk of the clean-energy industry’s woes are macroeconomic. With headwinds ranging from high interest rates and inflation to geopolitical tensions driving an increased focus on energy security, the path to a low-carbon future now looks less straightforward, rockier and more expensive than it did just a few years ago. “The need for energy is not declining on a global basis," says Matthew Hutton, managing director responsible for energy investments in the infrastructure group at Brookfield. The asset manager is now raising its biggest-ever infrastructure fund and has already exceeded its target of $25 billion. Investment giant Brookfield Asset Management last year collected $15 billion in capital for an energy-transition fund and is now raising a second fund that it expects to be even bigger.īut Brookfield is also seeing increased amounts of money flowing into more traditional types of energy assets, such as liquefied-natural-gas facilities and natural-gas pipelines, which are included in its infrastructure business. Solar and wind capacity is growing fast, governments are rolling out policies to support low-carbon technologies and billions of dollars are flowing into projects ranging from hydrogen production to electric-vehicle charging stations. The shift away from oil and gas is still happening. Energy-mix forecasts show that natural gas, oil and renewables “all play significant roles out to 2050," he said. “There will be no easy solution or quick fix to the energy transition," James Yardley, an executive at pipeline operator TC Energy, told an audience at an energy-transition conference in Houston this past week. Climate-warming carbon emissions are expected to climb to a record this year, some researchers say. Meanwhile, the oil-and-gas industry is embarking on a round of megadeals enabled by soaring profits and is pushing more forcefully the idea that fossil fuels will be around for a long time yet. In the U.S., automakers are reining in electric-vehicle plans as demand falters. Offshore wind projects are being scrapped, and renewable-energy companies’ share prices are tanking. ![]()
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