As you well know, we’re all in a race against global warming. If we don’t dramatically accelerate the clean energy transition, we all lose. But renewable energy project development isn’t an individual sport, it’s a relay race. To win, we need peak performance from every athlete on the team, not simply a great performance by the anchor runner. What’s more, we can’t drop the baton.
In order to bring more renewable projects to market, more quickly, we need better coordination between companies. Consider this: A utility-scale wind or solar asset under development can transfer ownership three or four times. The initial owner may secure the land and initiate interconnection and permitting work. This developer might then hand the baton to a larger developer to secure the PPA, finalize design, and arrange construction financing. Once the project is operational, this second developer could sell the project to a third entity: a long-term owner-operator that runs the anchor leg.
Until now, the industry has largely passed renewable project batons in the dark, awkwardly fumbling about, without the benefit of transparency, technology, or standards that make for a smoother handoff and a faster process. To sell an asset, most owners still take a for-sale-by-owner approach, developing custom marketing materials and emailing industry contacts. With limited visibility into potential willing buyers, the sellers aren’t well-positioned to execute a rapid and successful process. Conversely, the larger developers that seek to fill their project pipelines have no way to assess the total landscape of available opportunities. Moreover, evaluating the economic and development feasibility of someone else’s assets is a laborious process. Bottom line: buyers and sellers can’t say, with confidence, that they’re getting the best offer or the best asset in the market.
Renewable Transaction Infrastructure to Scale the Industry
LevelTen Energy’s mission is to accelerate the clean energy transition by facilitating frictionless transactions. We started by making one relay leg much faster: the leg in which the developer secures a power purchase agreement (PPA). The LevelTen Energy Marketplace is now the global hub for renewable energy PPAs, as it comprises more than 470 developers, each logging in regularly to update their project information. By bringing buyers, advisors, and sellers together in a centralized marketplace, and by delivering the tools and services to execute deals quickly and safely, LevelTen has dramatically accelerated the PPA process.
Now, we’re delivering the renewable transaction infrastructure required to accelerate deals between asset buyers and sellers. Today we announced the launch of the LevelTen Asset Marketplace, an online marketplace for renewable energy asset acquisition and divestiture. At launch, the Asset Marketplace software supports sell-side transactions, enabling owners to post assets available for auction, and allowing potential acquirers to submit bids through the platform. Soon, the Asset Marketplace will streamline buy-side transactions, enabling buyers to issue RFPs and collect seller responses, painlessly.
With this launch, we’re accelerating the M&A leg of the race, allowing buyers and sellers to reach the widest audience with minimal effort. But we won’t stop here; we’re committed to expediting every segment of the race, building the renewable transaction infrastructure that brings transparency, liquidity, and standards to scale the clean energy market.
I’d like to thank the entire LevelTen team for their tireless work on bringing this product to life, including our Vice President of Asset Marketplace, Patrick Worrall, who managed this launch from the ground up.
Anyone who is interested in learning more about participating in the LevelTen Asset Marketplace should email DeveloperServices@LevelTenEnergy.com for more information.