The investment will be used over 18 months to fund a diverse portfolio of approximately 75 megawatts of solar and solar plus storage projects, which will be developed and constructed by Duke Energy Renewables' subsidiary REC Solar
Duke Energy Renewables, a subsidiary of Duke Energy has announced the closing of $109.4 million in a preferred tax equity funding from Goldman Sachs’ Alternative Energy Investing Group.
The investment will be used over 18 months to fund a diverse portfolio of approximately 75 megawatts of solar and solar plus storage projects, which will be developed and constructed by Duke Energy Renewables’ subsidiary REC Solar. Projects will feature ground-mount and rooftop commercial and industrial projects, as well as community solar projects across several different states including Arizona, California, Colorado, Hawaii, Massachusetts and Texas.
Goldman Sachs’s investment structure, monetizing both cash and tax attributes generated by the projects, is uniquely tailored to finance large, distributed portfolios of renewables assets. Monetizing the investment in this way allows Duke Energy Renewables to free up capital to continue to invest in its distributed generation portfolio.
“Goldman Sachs’ investment will support Duke Energy Renewables’ continued growth in the distributed energy space, which will further our goals of delivering long-term value to customers and investors,” said Chris Fallon, president of Duke Energy Renewables. “This is just one more way we’re providing reliable and cost-effective renewable energy to businesses and communities across the United States.”
“Our partnership with Duke Energy Renewables demonstrates the benefits of an integrated approach to financing high-quality distributed solar projects at scale. By combining the financing of tax and cash attributes into a single product, Goldman Sachs is able to provide sponsors like Duke Energy Renewables with comprehensive and flexible financing solutions tailored to each individual portfolio’s needs,” said Vivek Kagzi, of Goldman Sachs’ Alternative Energy Investing Group.
The portfolio comprises behind-the-meter and utility-scale installations that will provide power to a wide range of private sector and public sector customers through long-term power purchase agreements (PPAs).
NextPower Capital acted as the financial advisor to Duke Energy Renewables and REC Solar, and Hunton Andrews Kurth LLP and O’Melveny & Myers LLP were the transaction legal counsels for Duke Energy Renewables and Goldman Sachs, respectively.
As one of the nation’s top renewable energy providers, Duke Energy currently owns, operates and contracts more than 8,000 MW of capacity and plans to double that by 2025.
Source: Company Press Release