CleanCapital, a mid-market renewables project financing group, has invested an undisclosed amount in Renewable IPP in addition to its commitment to finance an 8.5-MW solar project in Alaska.
The financial terms of the deal were not disclosed.
The project will supply renewable energy to local utility Matanuska Electric Association (MEA). It will create around 30-40 construction jobs and 15-20 part-time maintenance jobs. Construction will commence this month with an anticipated completion date of summer 2023.
When fully operational, the solar array will power approximately 1,400 homes annually, helping to diversify energy generation in Alaska.
CleanCapital will provide financing for project construction and serve as the long-term owner-operator of the project. In addition to construction financing, CleanCapital’s investment will fund Renewable IPP’s operations to accelerate the development of its future pipeline in Alaska.
The two companies began working together in 2020.
“Accelerating the energy transition necessitates seeking out regions that are currently underserved by the solar industry and working with local partners to build the projects that will bring cost-competitive and emissions-free power to those communities,” remarked Julia Bell, Chief Commercial Officer at CleanCapital.
“MEA is excited to partner with Renewable IPP to expand the amount of renewable energy on our system. Member surveys indicate people want MEA to produce more power with renewable energy, but not at an additional cost. We believe this project achieves that goal while helping MEA responsibly meet the board’s carbon reduction targets,” said Tony Izzo, Chief Executive Officer of Matanuska Electric Association.
According to CleanCapital, with this investment, its solar and solar-plus-storage development pipeline is more than 1 GW.
CleanCapital engaged Orrick as Buyer’s counsel on this transaction. Davis Wright Tremaine represented renewable IPP. Earlier this year, CleanCapital, acquired a 100% ownership stake in BQ Energy (BQE), a landfill and brownfield renewable energy development company. The acquisition includes about 300 MW of late-stage solar projects and more than 700 MW of mid-stage development solar projects.
According to Mercom’s 1H and Q2 2022 Solar Funding and M&A Report, announced large-scale project funding in Q2 2022 came to $6.9 billion, a 24% decrease compared to $9 billion in Q1 2022.