November 16, 2020
NY Green Bank Announces Financial Commitments of $165.9 Million in Record Setting Second and Third Quarters in 2020 Helping the State Rebuild its Economy and Combat Climate Change
Contributes to Growing Portfolio of Over $1.1 Billion to Support Clean Energy and Sustainable Infrastructure Investments Statewide Amid COVID-19 Pandemic
NY Green Bank, a division of the New York State Energy Research and Development Authority (NYSERDA), today announced its strongest third quarter since inception with the release of its Quarterly Metrics Report [PDF]. Amid the ongoing COVID-19 pandemic, NY Green Bank has remained committed to its mission, executing 16 clean energy and sustainable infrastructure transactions representing $165.9 million in new investments in the second and third quarters, bringing its total commitments to $1.1 billion. These commitments, which are expected to spur up to $3.0 billion in clean energy investments and help New York to rebuild its economy, support Governor Andrew M. Cuomo’s mandate for a 100 percent zero-emission electricity sector by 2040 as included i n the Climate Leadership and Community Protection Act.
“Throughout the pandemic, NY Green Bank has remained committed to ensuring that the momentum of clean energy deployment in New York State holds strong,” said Alfred Griffin, President of NY Green Bank. “We have provided liquidity to the market through challenging times and will continue to do so in a prudent relationship-driven manner.”
NY Green Bank’s unprecedented third quarter follows its strongest second quarter to date, demonstrating the financing institution’s ability to serve as a trusted lender willing to develop and implement innovative financial transactions and solutions, to serve as a catalyst even in times of uncertainty. In addition, NY Green Bank generated $13.4 million in revenue during the second and third quarters, bringing its cumulative total revenue since inception to $100.2 million. These revenues allow NY Green Bank to remain self-sustaining while reinvesting capital back into future clean energy projects. Projects supported by NY Green Bank’s investments to date are expected to reduce between 11.6 and 21.7 million metric tons of greenhouse gas emissions for all New Yorkers, equivalent to removing more than 200,000 cars off the road for 24 years.
Doreen M. Harris, Acting CEO and President of NYSERDA said, “Under Governor Cuomo’s leadership and vision for a carbon-neutral economy, NY Green Bank continues to make investments that stimulate the development and scale-up of clean energy resources. These investments demonstrate that we are making significant progress to realize an equitable clean energy future, as well as send a clear signal to private developers and investors that New York State is a strong market for green innovation and economic development.”
Projects financed across the state in 2020 during the COVID-19 crisis included wind farms, community distributed solar plus storage, renewable and energy efficiency projects to benefit low- and moderate-income communities, fuel cells, and more.
To remain responsive to changing financing needs in the clean energy market, NY Green Bank also developed the following financing solutions to address COVID-19-related issues:
- Allow deferral on loan repayments for borrowers in good standing that demonstrate hardship related to COVID-19 and that they will use added liquidity for payroll purposes;
- Finance interconnection deposits to eligible large-scale renewables and community distributed generation developers with corporate guarantees and/or a pledge of assets as collateral; and
- Restructure financing to enable borrowers to secure federal or state stimulus funding.
To further support clean energy and sustainable infrastructure business during COVID-19, NY Green Bank became an approved lender under the U.S. Small Business Administration’s Paycheck Protection Program and issued four loans to businesses that reduce greenhouse gas emissions in New York State.
NY Green Bank played a variety of roles in the capital structures of these projects, including providing construction finance, short-term aggregation finance and long-term finance, and investing as a senior lender, back-leverage lender, and subordinated lender. The overall investment portfolio continued to grow during this quarter, registering the fourth consecutive record-setting quarter with a highest end-of-quarter total since inception. This demonstrates that the investment portfolio is stable, growing and providing increasing support to advance clean energy projects.
For more information on NY Green Bank or these projects, please visit greenbank.ny.gov.
New York State's Nation-Leading Climate Plan
Governor Cuomo's nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieving its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. It builds on New York's unprecedented ramp-up of clean energy including a $3.9 billion investment in 67 large-scale renewable projects across the state, the creation of more than 150,000 jobs in New York's clean energy sector, a commitment to develop 9,000 megawatts of offshore wind by 2035, and 1,800 percent growth in the distributed solar sector since 2011. Under Governor Cuomo’s leadership, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while working towards a goal of 40 percent of the benefits of clean energy investments to disadvantaged communities, and advancing progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 TBtus.
NY Green Bank
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 nation-leading goals to combat climate change, as outlined in the Climate Leadership and Community Protection Act, 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. To learn more about NY Green Bank, visit greenbank.ny.gov or follow us on LinkedIn.
NYSERDA, a public benefit corporation, offers objective information and analysis, innovative programs, technical expertise, and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce reliance on fossil fuels. NYSERDA professionals work to protect the environment and create clean-energy jobs. NYSERDA has been developing partnerships to advance innovative energy solutions in New York State since 1975. To learn more about NYSERDA’s programs and funding opportunities, visit nyserda.ny.gov or follow us on Twitter, Facebook, YouTube, or Instagram.