NY Green Bank Announces Strongest Quarter to Date, Committing More Capital in Fourth Quarter of 2019 Than Any Other Quarter
New Investments of $117.5 Million Contribute to Growing Portfolio Commitments of Over $909 Million, Spurring up to $2.4 Billion in Sustainable Infrastructure Investments Statewide
NY Green Bank today announced that its fourth quarter of 2019 was the strongest to date with more capital committed than any prior quarter, adding $117.5 million to its current portfolio. This achievement complements NY Green Bank’s strongest calendar year yet with a total of $276.1 million committed in 2019, growing its total portfolio commitment to over $909 million and spurring up to $2.4 billion in clean energy investments. These investments support the State’s goal of an 85 percent reduction in greenhouse gas emissions by 2050 and Governor Cuomo’s Green New Deal, the nation-leading clean energy and climate agenda that has set the State on the path to economy-wide carbon-neutrality.
NY Green Bank President, Alfred Griffin said, “NY Green Bank is pleased to have committed more capital in the fourth quarter of 2019 than ever before, bringing us to our strongest calendar year performance to date. Achieving these milestones demonstrate how NY Green Bank is shaping New York’s climate and clean energy future under Governor Cuomo’s leadership and how, through collaboration with the private market, we are helping build the State’s path to carbon neutrality.”
NY Green Bank committed capital to five transactions during the fourth quarter of 2019, bringing its total number of investments closed since inception to 57. Overall, NY Green Bank’s transactions are expected to drive an estimated gross lifetime greenhouse gas emissions reduction of between 10 and 18 million metric tons, which is equivalent to taking up to 183,599 cars off the road for 23 years.
Alicia Barton, CEO and President of NYSERDA said, “Governor Cuomo has made clear that New York will use every tool at our disposal to accelerate the development and construction of clean energy solutions, and the innovative financing tools the NY Green Bank is delivering are part of this nation-leading strategy. Each investment is another step forward in our commitment to lowering harmful emissions and reducing our reliance on dirtier fossil fuels – benefitting all New Yorkers with healthier communities, lower energy costs, and a more resilient grid in the face of climate change.”
Transactions closed during the fourth quarter of 2019 include:
- $2.5 Million Bridge Loan to Eden Renewables – Supporting the Deployment of Community Solar Projects
NY Green Bank’s $2.5 million bridge loan to Eden Renewables will finance the deposits made to National Grid to secure interconnection rights for a portfolio of community distributed generation solar projects in New York State. This transaction is expected to support up to 84 megawatts of solar assets in New York State and reduce up to 870,378 metric tons of greenhouse gas emissions annually, providing commercial and residential subscribers access to reliable, clean, low-cost energy.
- $50 Million Term Loan to support AES Distributed Energy – Continued Support of Distributed Generation
NY Green Bank provided a $50 million term loan, as a member of a bank group providing a larger loan, to AES Distributed Energy (AES), an experienced project developer, owner, and operator of renewable energy projects. AES actively manages a project portfolio that consists of community solar, utility scale, and municipal solar projects – totaling over 46 megawatts in New York State. The bank group’s loan proceeds are expected to finance AES’s portfolio of 41 Northeast projects under development, including 14 distributed solar projects totaling $97 million in project costs in New York State, which will deliver considerable environmental and economic benefits to New Yorkers. In addition, four of the projects currently under construction in this portfolio will support clean energy generation at New York State Parks including the James Baird State Park, Clarence Fahnestock State Park, Orphan Farm Meadow at the Taconic State Park and Sunken Meadow State Park on Long Island.
- $35 Million loan to a portfolio of assets owned by Generate – Accelerating Clean Energy Investment
NY Green Bank provided a $35 million loan to support Generate and leverage its existing loan with Plug Power. With the execution of this transaction, NY Green Bank expects to attract more investors considering clean energy investments in New York State. This transaction will result in projects with installed generation capacity of at least 17 megawatts which will deliver environmental and economic development benefits to New Yorkers across the state.
- $10 Million loan to BQ Energy – Supporting the Deployment of Solar Projects
NY Green Bank provided BQ Energy, a solar energy project developer specializing in landfill and brownfield site redevelopment, a $10 million loan to finance the cost of project development efforts in New York State. NY Green Bank’s participation in this transaction contributes to accelerated development of solar facilities in New York on brownfield/landfills, with offtake arrangements targeted to municipalities, universities, schools and hospital and community distributed generation subscribers.
- $20 Million Term Loan to True Green Capital – Continued Support of Distributed Generation
This $20 million term loan transaction will help NY Green Bank continue to demonstrate the viability of community solar in the State, draw new investors and financial institutions into the marketplace, and lower the cost of capital related to community distributed generation. True Green Capital, a specialized energy infrastructure asset management firm with over 550 megawatts of solar power plants operating or under construction across the United States. CIT served as sole lead arranger for the project financing, which totaled $42.8 million.
For more information on NY Green Bank or these projects, please visit greenbankny.ny.gov.
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.