Encina Sustainable Infrastructure, backed by Taiga Mistral, launches its first investment vehicle in Sustainable Infrastructure in the United States

Encina Sustainable Infrastructure (“Encina”) has announced the launch of its first vehicle to invest in sustainable infrastructure and energy transition in the United States. The vehicle will invest in asset in operation and under development primarily in renewable generation technologies and batteries creating a diversified growth platform. The platform will have its own dedicated team. Encina's initial goal is to raise 300 million dollars from large private and institutional investors.

Encina is an independent investment management company focused on sustainable infrastructure and energy transition investing in the Americas and EMEA. Encina’s investment scope covers a broad range of investment themes and strategies going from diversified growth platforms to direct investments in single asset or portfolio build-ups strategies in renewables, C&I, transmission, biogas, green hydrogen, and water assets, and geographies. The company is formed by the founding and management team, that comes from Atlantica Sustainable Infrastructure, and Taiga Mistral, an independent Spanish firm leader in renewable energies investments with more than 2 GW of installed capacity.

The platform will invest in assets in operation and under development, through acquisitions, co-development agreements, and in-house development in renewable power, mainly wind and photovoltaic, and battery energy storage. The change of the energy model generates a huge appetite to invest in energy transition investment platforms, by funds and large corporations looking for 'green engines' to achieve their renewable objectives.

The Market

The United States is the world's second-largest investor in energy transition, reaching an investment in the sector of 141 billion dollars in 2022. In August 2022, the Biden administration passed the Inflation Reduction Act, which represents the largest energy transition investment in U.S. history. The IRA will inject more than 390 billion dollars in energy transition and will catalyze, according to Goldman Sachs data, private and public investments of up to 2.9 trillion dollars until 2032.

The incentives and stability granted by the IRA for the next 10 years, coupled with the current low renewable penetration in some states, the cost competitiveness of renewables, and the size of the market, configure the perfect scenario to invest in the US market.

The United States is, therefore, one of the most attractive markets for investment in renewable energies, which still represent less than 20% of generation (2022). The U.S. energy mix remains predominantly based on thermal generation. Onshore wind generation has remained stable over the past decade, and solar PV began to have relevance in 2014 and has grown gradually since then.

The Team

The management team of Encina, led by Stevens C. Moore, Manuel Gayan, and Marta Jorge, counts on a successful track record, working together for more than 8 years originating, executing, and managing numerous investments in the Americas, especially in North America, and in EMEA. They have experience in a wide range of technologies, including solar, wind, hydraulic, battery storage, geothermal, district heating, cogeneration, transmission lines, hydrogen, and desalination. The management team possesses extensive experience in the sector and has unparalleled local and global relationships with developers, utilities, investors, and financial institutions, which are crucial for successfully driving Encina's investment strategy.

Encina also benefits from the support of Taiga Mistral, led by Antonio Tuñón, which has over 15 years of experience in managing investment vehicles in the energy sector, particularly in generation and electricity distribution. They have a track record in asset management of more than 2 GW in various markets and technologies, such as solar photovoltaic, wind, hydroelectric, and biomass.

According to Stevens C. Moore, "Encina offers a unique opportunity to invest in sustainable infrastructure and energy transition in the United States, one of the most attractive investment markets for the next decade. This is made possible through a proven investment model, led by a management team that has deep knowledge and extensive experience in the country and the support of Taiga Mistral, along with top-tier private and institutional investors."