Axia Partners makes a clear distinction in its approach for all main sub-segments of the Clean Energy sector as there is a fundamental difference between the provision of Renewable Energy and the management of use of energy through Clean Technology and large-scale implementation in commercial and residential environments.
For Clean Technology companies, continued innovation via R&D funding and building up an IP position as well as managing corporate growth and a clear market strategy are key. For investors the risks in the technology, business model, execution and access to markets are most important.
Specifically for energy efficiency measures, there is a rapid convergence in activities between energy efficiency technology providers and the owners and tenants of the Real Estate that will benefit from the energy savings. This warrants the introduction of funding structures and implementation concepts that play to each party's strenghts and are built around identifying the most cost-effective and long-lasting efficiency technology, the best in class suppliers of the technology, solid end users or partners and business cases that result in sufficient returns on investment for the party funding the implementation.
For Renewable Energy companies, a more project-driven approach is needed as the sector employs proven technologies in large capital investments backed by highly leveraged project financing and long-term pricing agreements. For investors the risk in obtaining permits, design, construction, operation, financing and future market pricing are key.