Supporting leaders in the transition to a
Distributed Energy Economy
MODERN ENERGY SEEKS A WORLD WITH ABUNDANT, ACCESSIBLE, SUSTAINABLE ENERGY FOR EVERYONE
Modern Energy invests in and through businesses that bring distributed energy innovations to market and the portfolios of assets those businesses produce. From energy efficiency in the United States to solar projects in emerging markets, Modern supports leaders in the transition to a distributed energy economy.
MODERN ENERGY IS A PRIVATE EQUITY FIRM FOCUSED ON BRINGING EMERGING TECHNOLOGIES TO SCALE
Changes in energy efficiency, generation, management, and storage technologies make for a dynamic time in energy markets, presenting opportunities for Modern to identify mispriced investment opportunities and bring market-moving price and technology trends to scale.
WORKING WITH MODERN ENERGY
Modern Energy is engaged in the business of identifying emerging energy asset classes and executing differentiated financing transactions to accelerate and profit from the classes’ growth. Modern believes in making early investment in emerging energy asset portfolios and then scaling its investments as the market segment grows.
TEN THESES UNDERPIN ALL OF OUR INVESTMENT DECISIONS
1. DE Growth - The proportion of energy produced worldwide by Distributed Energy will increase dramatically in the next several decades.
2. DE Disruption - Distributed Energy technologies will both disrupt traditional energy markets as well as alter the economics in large and small-scale ways
3. Capital Agility - Intelligent investors will tailor their investment solutions to the stage or maturity of the developer with whom they are working. That will trend towards enterprise/corporate investments when the developer is young, and can transition to asset investment as the portfolio and developer mature.
4. Generalization - Technologies, strategies, systems and learnings discovered in one local market can be applied to numerous other disparate local markets.
5. Transaction Cost - Technology allows new energy assets to be smaller and more distributed by reducing transaction costs.
6. Democratization - The adoption of Distributed Energy is creating material opportunities to democratize energy access.
7. Context - Local market conditions will heavily impact energy mix and require consideration when developing an approach for a specific market.
8. Transitional Market - The richest opportunities are found in transitional markets where the most economic solution for market participants has recently changed. First movers, who identify the right bellwether events, can create outsized returns in these markets.
9. Risk pricing - Risk in transitional markets is often mis-priced. A business able to price risks appropriately is poised to profit disproportionately.
10. Slow-moving Incumbents - High regulatory hurdles, large revenue expectations on sunk costs, and a lack of agility will cause incumbents to struggle to pursue new energy opportunities.