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Consolidation time

We’ve seen a little of it already, but with hundreds of little renewable companies now operating and the bull run in the stock market showing signs of decline, consolidation should start to accelerate. It’s now time to figure out who will be acquiring and who will be targeted. The best acquirers will have a vision to fulfill and will have deep pockets (or access to deep pockets) to realize the consolidation. The targets will be predictable businesses that generate cash and carry large debt loads. Is anyone out there thinking Ormat? Calpine? Florida Power & Light?

Given the recent activity with KKR, Blackstone, and Goldman Sachs, it wouldn’t surprise me in the least if the private equity market leads this round of consolidation. Stay tuned, it’s going to be interesting.

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