Our investment activities are driven by transactions proposed through our open solicitation and informed by ongoing assessments and conversations with private sector lenders, investors and project developers to determine where our resources are best able to advance and expand clean energy financing markets. We offer structured wholesale financial products and solutions and focus on investments using the same technologies that drive carbon reduction and other public benefits contemplated under New York State clean energy policies. Our wholesale lending approach helps maximize our impact, including through our clients and with other funding providers where both the capital and institutional capabilities of private market participants are being mobilized. This type of public-private partnership is critical to our operation at the evolving frontier of clean energy financing markets, filling existing gaps, overcoming barriers and working with the private sector to expand commercially accepted investment and lending parameters.
NY Green Bank is both market-focused and market-responsive. We ask market participants to identify specific gaps and barriers that are preventing otherwise technically and economically feasible transactions from closing. We implement solutions that:
- Reduce risks related to new structures and less well-understood credits;
- Support aggregation to achieve scale and drive liquidity;
- Promote standardization to reduce costs (contracts/documents, installation practices, servicing practices, credit underwriting methodologies); and
- Enhance market confidence in clean energy investing by promoting data collection (aggregated and anonymized) to support a growing industry-wide track record.
Future growth expectations for New York’s clean energy marketplace are considerable, as these investments continue to provide attractive risk/return profiles. Reflecting initial private sector leverage and taking into account the recycling of NY Green Bank’s capital, early projections suggest that our $1 billion capitalization could produce as much as $8 billion of additional private sector investment in clean energy projects over the next ten years. Unlike grant or incentive payments, which typically involve ratepayer funds being used as one-time subsidies or grants, NY Green Bank funds are invested at market rates, ensuring that we cover our own costs and preserve our capital base for continued deployment. By growing the market and developing a track record of project and loan performance, we aim to further mobilize clean energy activity in New York State without the need for further ratepayer funding as evolving market opportunities prove increasingly attractive to private sector entities.