Panda Power Funds was formed in 2010 by the former senior management team and energy professionals of Panda Energy International, an independent power development and management company originally founded in 1982. While at Panda Energy, the executive team financed, developed, built and operated 9,000 MW of generating capacity, at an approximate cost of US $6 billion, including the two largest natural gas-fueled power plants ever built in the United States.
Panda Power Funds closed its initial private equity fund with $420 million of commitments in 2011. In addition to evaluating third-party opportunities and management teams, Panda Power Funds has the ability to internally source proprietary, large-scale power generation development and other investment opportunities.
The Fund has voluntarily adopted the Guidelines for Responsible Investment developed by the Private Equity Council.
Our fund is focused on developing or acquiring expandable energy assets, specializing primarily in the development of large-scale natural gas-fueled power plants.
Panda Power Funds was formed in 2010 in response to the substantial opportunities it’s management team saw emerging in the U.S. power sector. According to the Energy Information Administration, the United States will need 338,000 megawatts of new generating capacity – representing $677 billion of investment – by 2035.
This very large need for new generation is currently being driven by:
- Coal plant retirements — 30,000 megawatts have announced plans to retire by 2016 and 68,000 megawatts are expected to be retired by 2018 as a result of low-cost natural gas and stringent new EPA regulations; (Brattle Group report “Potential Coal Plant Retirements: 2012 Update”)
- Enormous natural gas reserves — a growing 100-year reserve of domestically-produced natural gas led by vast shale gas discoveries;
- An aging generating fleet — a large number of U.S power plants, currently between 30-40 years of age, are nearing the end of their useful lives;
- Growing renewable generation — renewable generation, such as wind power, is intermittent and requires back-up generation that can be quickly dispatched to compensate for lost power; and
- Regulatory uncertainty — A substantial number of strict federal and state environmental regulations, such as “once-through” cooling prohibitions, could impact nuclear, coal and older natural gas-fueled generating facilities.
Our Competitive Advantages
Panda Power Funds is composed of an experienced team of professionals whose expertise covers the entire value chain of the U.S. power industry. With more than 500 years of combined experience, the firm can create, develop, acquire, finance, construct, operate and monetize large-scale power generation projects.
Panda enjoys an extensive network of long-term industry relationships and a collective history of more than 20 years of successfully developing power generation projects. This standing often provides the firm with a preferred position among communities, financial institutions, power purchasers, gas suppliers, equipment vendors, engineering and construction firms, and other groups who are necessary to successfully developing, owning and operating power generation projects.
Panda Power Funds also possesses strong internal sourcing capabilities, creating proprietary deal flow.
Panda Power Funds is an opportunistic private equity energy fund. We focus our investment and activities on opportunities where we can create additional value through development, expansion, restructuring or operations.