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The power play by hedge fund D.E. Shaw

Dec 1, 2022
Illustration of a briefcase made out of solar panels.

Megan Robinson/Axios

D. E. Shaw, one of the world's largest hedge funds, is also among the nation's largest independent power producers. The New York fund has become an unlikely and key renewables player as the space gears up for production in the wake of the Inflation Reduction Act.

Why it matters: With roughly $60 billion in assets under management, D. E. Shaw has the financial strength to remake the clean energy industry.

State of play: D. E. Shaw's renewable investments arm is known as DESRI. Its sheer size has given it an edge on pricing power for off-take agreements and power purchase agreements (PPAs).

  • Its role as a main player in the renewable energy market is poised to increase as more companies look for clean energy alternatives to meet emissions goals for 2025 and 2030.
  • DESRI's portfolio currently includes more than 65 solar and wind projects that generate more than 6 gigawatts of aggregate capacity.
  • Clean energy project development — whether new construction or retrofitting old facilities — is a capital-intensive undertaking that often requires a bank loan.
  • PPA contracts are often necessary to secure the initial loan to prove there is a buyer for the project's energy once it is complete.

The bottom line: D. E. Shaw's influence over the clean energy market is just starting to take off.

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