Augusta wants to turn PPAs into an institutional asset class

Can power-purchase agreements (PPAs) be turned into an institutional asset class?

London-based Augusta Investment Management argues that – done the right way – PPAs can indeed. It is all about choosing a suitable underlying asset, according to Augusta’s Mortimer Menzel.

“We want to purse a unique private equity strategy and settled on what we thought was the most interesting technology in renewables: reservoir hydro, so massive lakes that can accumulate water for months and months of the year without needing to produce electricity. They can choose to produce only when the prices are high.”

Infrastructure Investor