August 27, 2019
Since our last newsletter, we have had a busy few months at NY Green Bank– including concluding our annual business planning process with the culmination of filing our Annual Business Plan. The plan outlines NY Green Bank’s strategic priorities and deliverables for 2019-20, as well as provides a detailed review of activities and accomplishments in the 2018-19 plan year. With a goal for new investments of $225.0 million, NY Green Bank had a stand-out year with $280.1 million in new commitments to clean energy and sustainable infrastructure investments across 15 transactions. We surpassed our net income objective by more than two times, further solidifying NY Green Bank’s track record of self-sufficiency.
Over the past fiscal year, NY Green Bank played a variety of roles in capital structures, including construction finance, short-term aggregation finance and long-term finance (including mini-perm structures), and we’ve invested as a senior lender, back-leverage lender, and subordinated lender. We have also broadened the range of segments in which we have made investments, adding in onshore wind and community distributed generation, for which we had been strategically laying the groundwork during prior periods.
In addition, NY Green Bank’s latest Quarterly Metrics Report was filed yesterday (see here under “Metrics”), which was included in a press release (here). Quarterly impact progress includes:
- NY Green Bank received over $3.4 billion in investment proposals (since inception);
- The active pipeline of potential investments proceeding to close was $546.7 million;
- Cumulative revenues equaling $65.4 million have been generated and NY Green Bank continues to maintain self-sufficiency by generating annual net income; and
- Investments made equate to estimated gross greenhouse gas emissions reductions of up to 16.4 million metric tons, equivalent to removing as many as 164,476 cars from the road for 23 years.
We are proud of our achievements thus far in 2019, including our Quarterly Results announced yesterday, and look forward to building on our momentum. We appreciate your ongoing interest in our work and hope you find this newsletter informative. As always, if you have any questions or would like to discuss any investment opportunities, please do not hesitate to reach out to us at [email protected].
NY Green Bank
A Division of NYSERDA
Current Portfolio & Pipeline
Since the last newsletter, the team has closed multiple new investments, including:
- Committing $68.75 million to finance the acquisition of 612 MW of currently operating large scale wind projects in New York State expected to extend the useful life of the projects, and resulting in additional greenhouse gas reductions as well as the retention of more than 40 clean energy jobs in the North Country and Western New York.
- Providing $31.25 million to the recapitalization of a portfolio of wind farms, including a 55.35 MW project in the State, which supports the long-term financing of a large scale renewable project in New York State that has merchant exposure, as well as the secondary market for such assets.
- Lending $27.1 million to the recapitalization of a portfolio of residential solar assets, supporting the medium-term financing of post-tax equity residential solar assets and the secondary market for residential solar assets more broadly.
- Committing $6.0 million to enable the construction of six energy efficient greenhouses that will grow and sell certified organic produce.
NY Green Bank's pipeline at June 30, 2019 remained robust with $546.7 million of potential investments proceeding to close. These investment opportunities cover various asset classes including energy storage, solar-plus-storage, energy efficiency, sustainable transportation, and controlled environment agriculture, as well as projects that benefit low-to-moderate income communities. Our near and long-term focus remains continuing to successfully originate, execute and manage clean energy and sustainable infrastructure investments as material contributions to the realization of the State’s nation-leading climate and clean energy goals for the benefit of all New Yorkers.
We always encourage clean energy/sustainable infrastructure market participants to reach out if there are any financing barriers that are preventing your projects from moving forward. Learn more about our financing opportunities here and tune-in August 27, 2019 at 2:00 p.m. ET for NY Green Bank's Quarterly Report Review Webinar to hear more on NY Green Bank’s performance and impact. To register, click here.
Financial Market Transformation Study (the "Study")
Working with NY Green Bank, NYSERDA staff and DNV GL developed the Financial Market Transformation Study designed to assess the influence of NY Green Bank’s early activities on the clean energy finance markets in New York State. The Study found evidence of NY Green Bank’s impact on the following market changes:
- Increase in the number of and average size of project financings and their total dollar volume in markets NY Green Bank entered, particularly in residential, community, and commercial/industrial solar.
- Increase in the number and type of financial institutions active in the clean energy finance markets.
- In the residential solar financing market, the study team found evidence of decreases in costs of capital for transactions that fund loans or leases to customers, the growth of secondary markets, and replication in the structure of transactions in which NY Green Bank played an early role.
To learn more, read the Study here. Future studies will be conducted to further determine NY Green Bank’s market impact.
Service Provider Request for Proposals
Last month, NY Green Bank released Request for Proposals: Technical & Engineering Support & Market Fundamentals & Analysis Services (“RFP 11”). Through this solicitation, NY Green Bank seeks proposals from technical, engineering and service firms experienced in a broad variety of renewable energy technologies and other sectors of sustainable infrastructure. The deadline for the submission of qualifications to RFP 11 was August 8, 2019 and the selection and contracting process will be finalized over the next several months. In addition, NY Green Bank will shortly be issuing Request for Proposals: Outside Legal Counsel Services ("RFP 12") seeking proposals from qualified legal firms to provide support to NY Green Bank in both its investment and corporate activities. All interested parties should periodically check the opportunities to work with NY Green Bank (either on investments or as a service provider) on the website here.
NY Green Bank is actively recruiting to fill two positions: Analyst, Investment & Portfolio Management, and Analyst/Associate, Risk & Compliance. To learn more about the positions and application instructions, click here. Please check our LinkedIn periodically for future employment opportunities.