Encore Renewable Energy, a renewable energy developer and operator, secured a $389 million financing solution from Brookfield through its infrastructure debt platform.
The funding structure combines a construction-to-term debt loan and a tax equity bridge into one debt facility, along with a separate preferred equity facility specifically for tax equity financing.
This funding will allow the company to expand its efforts as an independent power producer (IPP) by financing the construction of a portfolio of community-scale solar and battery energy storage projects and expand the company’s development pipeline further.
Vinson & Elkins served as legal counsel to Encore Renewable Energy, and Norton Rose Fulbright served as legal counsel for Brookfield Asset Management.
“We are pleased to partner with Encore Renewable Energy to provide a bespoke financing package to support the build-out of their solar and battery storage projects. This transaction is a good example of the significant interest we have seen for capital solutions in the renewables sector, driven by the growing demand for power,” said Hadley Peer Marshall, Managing Partner and co-head of Brookfield’s infrastructure debt and structured solutions businesses.
Encore Renewable Energy is a portfolio company of SUSI partners, which acquired a controlling interest in the U.S. clean energy developer in 2023.
According to Mercom’s Annual and Q4 2024 Solar Funding and M&A report, announced debt financing came to $18.8 billion in 2024, 6% lower than $20 billion in 2023. Securitization deals were a key contributor to the 2024 total, with a record $5 billion in 16 deals.
Last year, WATT Renewable Corporation (WATT), a hybrid solar project developer, secured a $15 million debt facility through several of its project companies from the AFRIGREEN Debt Impact Fund (AFRIGREEN), an infrastructure senior debt fund. The funds will be used to finance hybrid solar power projects to be built and operated by WATT to cater to commercial and industrial clients in Nigeria.
