NY Green Bank's Initial Transactions
These initial transactions are supported and agreed to in principle. Terms are still being finalized and NY Green Bank is actively working to close the transactions listed below.
Expanding Commercial and Industrial (“C&I”) Energy Efficiency and Distributed Generation
Ameresco, Inc. is a leading independent provider of comprehensive energy services, energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions for facilities throughout North America. Ameresco would use proceeds from a NY Green Bank credit facility to make investments in C&I clean energy projects in new markets to further their commitment in New York State. The capital provided by NY Green Bank would be used in partnership with third-party project lenders to finance projects utilizing energy savings, power purchase and/or lease agreements, providing scale in the C&I market and filling gaps of financing for longer tenors than are currently available.
Energy Equipment Financing
A co-investment relationship between Bank of America Merrill Lynch (BofA Merrill) and NY Green Bank seeks to expand and enhance BofA Merrill’s current capabilities to finance public- and private-sector clean energy projects, including renewable energy, energy efficiency and combined heat and power (CHP). NY Green Bank will co-invest long-term capital that will be designed to enhance and potentially broaden BofA Merrill’s current suite of energy efficiency financing products and capabilities. This additional capital will be applied to achieving deeper energy efficiency retrofits and greater savings for property owners across the state.
Using Energy Service Agreements (ESAs) to Grow Commercial Property Efficiency Markets
NY Green Bank is working to provide a senior debt facility to Deutsche Bank to support its initiatives in energy efficiency projects under ESA structures, offering many potential benefits to building owners. When completed, this credit facility will support the execution of ESA-based retrofit projects with a range of real estate asset types, including commercial real estate properties, a segment that has largely not had access to financing for efficiency upgrades, thereby allowing for the more widespread adoption of ESA-based retrofits throughout the state.
Template for Mid-Sized Commercial Solar Projects with New Sources of Capital
First Niagara Bank and M&T Bank are in advanced negotiations, working towards providing financing for BQ Energy’s SteelSun, LLC’s 4 megawatt ground-mounted solar photovoltaic energy project on the former Bethlehem Steel Mill Site -– a New York State Brownfields Cleanup site in Lackawanna, N.Y. NY Green Bank plans to provide certain guarantees to the bank lenders for construction and tax equity financing. These guarantees will help transform financing markets for smaller-scale commercial solar by demonstrating to the commercial markets that financings of this size are an attractive investment for institutions such as regional and community banks and can be replicated easily to potentially build larger aggregated and marketable portfolios.
Scaling up Residential Energy Efficiency
Renewable Funding (RF) together with Citi, seeks to bring Renewable Funding’s Warehouse for Energy Efficiency Loans (WHEEL) program to New York State, providing large-scale capital for residential energy efficiency loans. NY Green Bank will provide a credit facility, to be used in conjunction with Citi and RF’s warehouse facility, and $100 million medium term note financing program. NY Green Bank participation will expand the availability of loans to homeowners in the state and promote the creation of a marketplace for the securitization of residential energy efficiency loans.
Building Marketable Portfolios of Energy Efficiency and Distributed Generation Assets for C&I and Public Buildings
Sustainable Development Capital, LLP (SDCL) has launched a new investment vehicle to invest in energy efficiency and distributed energy generation projects for commercial, industrial, and municipal buildings and other assets utilizing Energy Services Agreements with property and infrastructure owners in New York State. Upon closing, NY Green Bank’s credit facility will provide senior loans to SDCL’s investment vehicle, capitalized by First Eastern Investment Group and other investors and managed by the dedicated energy efficiency investment arm of SDCL located in New York. This investment vehicle will finance various energy efficiency and distributed generation projects with the goal of building portfolios of broadly standardized assets that are of sufficient size to attract new, direct investors.
Expanding Capital Availability for Small-Scale Commercial Cogeneration Projects
NY Green Bank is working towards funding construction and permanent debt as the senior lender to GreenCity Power, LLC (GCP), a business which designs, builds, owns, and operates small-scale cogeneration projects in New York City’s largest commercial buildings (hospitals, hotels, office buildings, etc.). GCP’s projects will deploy high efficiency natural-gas-fired reciprocating engines to generate electricity, heating and cooling. NY Green Bank will co-invest, along with Tulum Management, in GCP’s first five projects. Once a target portfolio of operating projects has been developed, institutional investors are expected to provide permanent financing.