The Shifting Finance of Electricity Generation

Aleksandar Andonov and Joshua Rauh

No 19289, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Private equity (PE), institutional investors, and foreign corporations own 58% of wind, 47% of solar, and 34% of natural gas electricity generation. These new entrants are twice as likely to create new power plants as incumbent domestic listed utilities, highlighting a new role for PE in large-scale asset creation. They also acquire existing plants. While fossil-fuel plant sales to foreign corporations extend operations, PE has similar decommissioning rates to incumbents. The new owners create more efficient plants and improve acquired ones. Market deregulation drives the results, highlighting the dual importance of competition and new financing for both creation and acquisitions.

Keywords: Innovation; Regulation; Energy; Ownership structure; Private equity; Electricity market; Utilities (search for similar items in EconPapers)
JEL-codes: G23 G24 G32 H54 L51 L71 L94 O13 Q41 Q48 (search for similar items in EconPapers)
Date: 2024-07
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP19289 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:19289

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP19289

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().