Blackstone Now Wants All Portfolio Companies To Go Solar
With this being just after the election, you have to wonder about the timing even if it does make sense. Blackstone Group LP (NYSE: BX) announced on Wednesday that it is embarking on a solar program. The private equity giant said that this has the potential to cut energy costs by approximately 10% and improve environmental performance across its portfolio of companies and real estate assets it manages.
The private equity giant said this is part of an ongoing effort to "focus on sustainability across the firm for companies it manages and advises." It will install solar panels and systems on the rooftops of select portfolio companies.
Blackstone has selected Smart Energy Capital to support project development and maintenance. What is interesting here is that the company said these systems will be installed free of charge and they will be owned, operated, and maintained by the third-party investors. This will minimize operational and economic barriers of the effort and the portfolio companies will buy solar power in long-term power purchase agreements which are expected to lower the cost of power at the time each startup occurs.
The move has failed to entice any buyers on a weak day as Blackstone shares (units) are down 2.7% at $13.97 and the 52-week range is $11.13 to $17.25.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Alternative Energy, Infrastructure, Private Equity Tagged: BX, featured