Energy Transition Strategy

 
 

Energy Transition Strategy

EnCap is pursuing investment opportunities created by the global transition to a lower-carbon energy system. The dramatic reduction in the cost of renewables and electric battery storage are driving a transformation in the energy sector. Renewables are the fastest-growing source of electricity generation in North America. Coal and nuclear combined currently generate 47% of U.S. electricity. Over the next two decades, U.S. electricity generation from nuclear and coal is projected to decline from 47% to 14% while renewable sources of U.S. electricity are projected to grow from 18% to 37%1. We believe this transition toward renewables and away from coal and nuclear presents exciting opportunities for the firm.

EnCap's Energy Transition team is leading the effort to explore these opportunities. The Energy Transition team is comprised of highly qualified executives with a proven track record of value creation in the electric power and alternative energy space and an extensive network of relevant industry contacts. Jim Hughes, Tim Rebhorn, Shawn Cumberland and Kellie Metcalf worked together at Prisma Energy and other firms before joining Encap. The Energy Transition team has more than 110 years of combined experience building successful teams in the power and renewable sectors, including over 80 years of executive level experience in project origination and development, M&A and finance, risk management, power trading and marketing, operations and administration.

The Energy Transition team is focused on investment opportunities in management teams and projects involving proven renewable technologies, such as solar and wind generation; low-cost battery storage systems, either on a stand-alone basis or coupled with renewables or existing gas-fired generation; and service businesses that engineer, procure and manage similar energy infrastructure projects for third parties.

1. Source: EIA 2018 U.S. Electricity Generation by Source and Bloomberg New Energy Finance 2019 Outlook.