In a recent fireside chat hosted by Giovanni Amodeo, Jehangir Vevaina, Managing Partner in Brookfield’s Renewable Power & Transition Group, shared valuable insights into the renewable energy investment landscape. The discussion, part of the ION Influencers series, delved into various aspects of identifying and capitalizing on investment opportunities in the renewable sector.

Vevaina, who has been with Brookfield since 2015, highlighted the company’s strategic focus on renewable energy and decarbonization. Brookfield has significantly invested in renewable energy, boasting over 34 gigawatts of operating capacity and a development pipeline exceeding 150 gigawatts. The company manages several funds, including a global transition fund dedicated to emerging markets, emphasizing the importance of scale and efficiency in operations.

Throughout the chat, Vevaina discussed the evolution of Brookfield’s investment strategy, which began with hydro projects and expanded into wind, solar, and storage solutions. He outlined three primary investment areas: clean energy, business transformation, and sustainable solutions, stressing the dual goals of achieving good returns and reducing carbon emissions in alignment with the Paris Agreement.

A significant part of the conversation focused on the practical aspects of decarbonization in businesses, including incentivizing management teams and structuring compensation to align with long-term decarbonization goals. Jehangir shared examples of successful interventions, such as fuel switching and renewable deployments, which have proven both economically viable and beneficial for the environment.

The discussion also covered the challenges and opportunities in deal flow, the importance of due diligence, and the strategic avoidance of unproven technologies. Jehangir expressed a bullish outlook on solar energy, predicting its dominance in the future energy mix, complemented by other renewable sources like wind and storage solutions.

In conclusion, Jehangir’s insights from the fireside chat underscored the intricate balance between financial returns and environmental impact in the renewable energy investment space. His expertise highlighted the critical role of strategic fund management and the potential of renewable energy to drive substantial economic and ecological benefits.

Key timestamps:

00:08: Introduction to ION Influencers’ Fireside Chats
00:36: Jehangir Vevaina’s Role at Brookfield
01:20: Renewable Energy Investment at Brookfield
01:58: Investment Niche and Market Trends
02:16: Investment Strategy and Focus Areas
02:55: Global Transition Fund and Unique Strategy
03:57: Dual Mandate Fund and Investment Goals
04:53: Focus on Scale and Competitive Advantage
06:05: Decarbonization and Green Transformation
06:26: Incentivizing Management Teams
07:32: Incentivizing Decarbonization and Long-Term Decision-Making
10:00: Deal Flow and Pipeline Overview
11:16: Due Diligence and Deal Selection
11:59: Postmortem and Lessons Learned
13:19: Technology Risk and Investment Focus
14:20: Government Support and Business Strategy
15:17: Bullish Areas in Renewables
16:40: Protecting Competitive Advantage and Value Creation
19:30: Capital Allocation and Investment Strategy
21:03: Risk Assessment and Deal Evaluation
22:11: Timing and Opportunity in Renewable Investments
22:44: Attractiveness of Infrastructure as an Asset Class
23:37: Investor Behavior and Market Trends
24:17: Democratization of Private Assets in Infrastructure
24:51: Competition in the Infrastructure Investment Space
25:44: Maintaining Focus and Managing Growth