Yieldcos have long been used as investment vehicles for energy projects, although only more recently have they been applied to renewable energy. Yieldcos are companies that are formed to operate assets and allow investors to buy stocks upon which returns are paid that reflect cash flows from operating projects. In the case of renewable energy, these would be cash flows from power purchase agreements and renewable energy certificates. Yieldcos are very similar to master limited partnerships and real estate investment trusts.
A Policy Brief on Yieldcos
Before you browse our library of published resources via the search link below, consider reading our policy brief about yieldcos, which is part of a series of briefs intended to inform legislators, decision makers, analysts working for government agencies and utility executives on current good practices and lessons learned.