August 14, 2019
Strong Quarter Brings NY Green Bank Commitments to Date to $786.7 Million - Spurring up to $2.14 Billion in Statewide Investments
Investments Support Governor Cuomo’s Green New Deal Goals for Economy Wide Carbon Neutrality and 85 Percent Reduction in Greenhouse Gas Emissions by 2050
NY Green Bank announced strong results for its second quarter as highlighted in its Quarterly Metrics Report[PDF] filed today, bringing NY Green Bank’s total portfolio commitment to $786.7 million and spurring up to $2.14 billion in investments statewide. Today’s announcement supports the state mandate for an 85 percent reduction in greenhouse gas emissions by 2050 and Governor Andrew M. Cuomo’s Green New Deal, the most aggressive climate and clean energy program in the nation.
NY Green Bank President, Alfred Griffin “NY Green Bank continues to expand its reach into new and growing asset classes such as community distributed generation, energy efficiency, and controlled environment agriculture. We are pleased with our second quarter results and look forward expanding our reach to help advance state goals under Governor Cuomo and to supporting more qualified projects to increase renewable energy in all sectors in the months ahead.”
Transactions closed in the second quarter include NY Green Bank’s first investment in Controlled Environment Agriculture (CEA), a bridge loan to advance community solar, financing support for residential solar, and support for creating a replicable transaction structure to expand energy efficiency financing for medium-sized and unrated commercial customers. To date in 2019, NY Green Bank is averaging $74.6 million in commitments per quarter. Cumulatively, NY Green Bank’s portfolio is expected to result in emissions reductions of between 9.6 and 16.4 million metric tons, equivalent to removing as many as 164,000 cars off the road for 23 years.
Alicia Barton, CEO and President of NYSERDA “Building out a clean energy marketplace is critical to supporting Governor Cuomo’s nation-leading clean energy goals and NY Green Bank continues to demonstrate its leadership in this area by strategically growing its portfolio across all sectors. Financial investments in energy technologies and business models are helping to maintain the New York’s trajectory toward a statewide energy transition for the benefit of all.”
Transactions closed during the second quarter of 2019 include:
- $6 Million Construction-to-Term Loan for Agbotic, Inc. – Supporting Deployment of Controlled Environment Sustainable Agricultural Assets in New York State
- This transaction is NY Green Bank’s first investment into the CEA market, which is a nascent sector in New York State. Agbotic, Inc. builds robotic greenhouses to grow specialty root crop, herb, leafy green and industrial hemp products to distribute directly to retailers, food service companies, restaurants and customers. This $6 million loan will enable Agbotic, Inc. to complete the construction of a cluster of six robotic greenhouses and related sustainable energy infrastructure located in Sackets Harbor, NY.
- $15 Million Credit for Ecosave, Inc. – Supporting Commercial Energy Efficiency in New York State
- Ecosave is an Energy Services Company (ESCO) that provides turnkey design, engineering, procurement, construction, utility management and maintenance solutions for building energy efficiency (EE) and Distributed Energy Resources (DER) projects. This $15 million credit facility will support at least five new EE or DER projects in New York State. NY Green Bank previously established a financing relationship with Ecosave through its $2 million participation in the Hebrew Home project with NYCEEC.
- $1 Million Bridge Loan to Distributed Sun – Supporting the Deployment of Community Solar Projects
- This $1 million bridge loan will finance interconnection deposits to New York State Electric & Gas and Rochester Gas & Electric in support of a portfolio of community distributed generation solar projects in New York State. This transaction is expected to support up to 45 megawatts of solar assets in New York State which in turn are expected to provide commercial and residential subscribers access to reliable, clean, low-cost energy and reduce up to 26,500 metric tons of greenhouse gas emissions annually.
- $27.1 Million for Spruce, Inc. – Supporting Secondary Markets for Residential Solar in New York State
- Spruce owns a portfolio of approximately 235,000 residential solar systems that it operates and manages, located in 11 states including New York. NY Green Bank’s $27.1 million in support, alongside private capital from five commercial banks supports the medium-term financing of residential solar panels in New York. The provision of secondary financing of operating solar panels is expected to provide confidence to developers and future financiers that there is increasing liquidity in the residential solar asset class, throughout the project lifecycle, spurring even greater interest and activity from developers and financiers.
This diverse group of transactions follows NY Green Bank’s successful first quarter, which included three closed transactions respectively sponsored by BlackRock Renewables Assets (one transaction) and Carlyle Power Partners (two transactions) that support:
- Large-scale wind in New York State, with a commitment of $31.25 million from NY Green Bank
- The deployment of an estimated 35.1 megawatts of new large-scale wind resources in New York State
- A total aggregate commitment of $68.75 million from NY Green Bank to support 612 megawatts of large-scale onshore wind in New York State
NY Green Bank is a division of NYSERDA. NY Green Bank is a state-sponsored, specialized financial entity working with the private sector to increase investments into New York’s clean energy markets, creating a more efficient, reliable and sustainable energy system. NY Green Bank’s investments and activities support Governor Cuomo’s Green New Deal, which requires that 70 percent of the State’s electricity come from renewable sources by 2030 and calls for 9 gigawatts of offshore wind by 2035, 6 gigawatts of distributed solar by 2025, and 3 gigawatts of energy storage by 2030.