Scale Microgrids closed a first of its kind non-recourse project finance debt facility to fund the construction and operations of a portfolio of microgrids, combined heat and power (CHP) systems, community solar, rooftop solar, battery energy storage systems and microgrid electric vehicle infrastructure projects in markets including California, Oregon, the District of Columbia, Pennsylvania, Delaware, Colorado, North Carolina, New Jersey and New York.
These distributed energy projects will impact communities across the country, providing a diverse range of businesses, schools, municipalities and rate-paying consumers access to energy that is cheaper, cleaner and more resilient.
“This deal serves as proof that the renewable energy landscape is changing. Microgrids, by their nature, incorporate a number of different technologies – and capital providers’ willingness to step up and support a diverse “first of its kind” portfolio further supports Scale’s vision of bringing microgrids and DERs to the masses. We’re thrilled to be leading this transition, and powering the world with distributed energy,” Ryan Goodman, co-founder and CEO at c, said.
“We thank our partners KeyBanc Capital Markets and City National Bank for demonstrating leadership in the commercial banking sector with the closing of this debt facility. With the closed facility, Scale has increased its access to the debt capital markets, which is a cornerstone of our strategy to deliver microgrids and distributed energy projects at favorable rates,” Julian Torres, CFO at Scale Microgrids, said.
KeyBanc Capital Markets acted as joint lead arranger and structuring administrative agent on the loan. City National Bank also contributed as joint lead arranger, and Energetic Insurance provided a credit insurance policy enabling access to the bank lending market. Black & Veatch was an independent engineer to the lenders; Wood Mackenzie delivered market forecasts; Allen & Overy provided legal counsel; and Foley Lardner served as lender counsel.
“This transaction is another example of our ongoing commitment to the distributed energy transition,” Andy Redinger, head of KeyBanc Capital Markets’ utilities, power and renewable energy group, said. “We’re excited to partner with a tier-one platform like Scale Microgrids as they execute on their strategy to deliver high-quality distributed energy assets to the market.”
“City National Bank has been a leader in financing utility-scale and distributed generation renewable power projects with a focus on solar, wind and storage technologies,” Craig Robb, managing director, power project finance at City National Bank, said. “We are proud to work with Scale Microgrids as they work to scale new energy projects for businesses, schools and municipalities.”
“Microgrids are an essential part of the next wave of the energy transition movement and Scale is providing innovative leadership with their long dated microgrid service agreements with a customer first approach. We at Energetic are excited to partner with Scale to unlock market access to more categories of commercial and non-profit enterprises,” James Bowen, CEO of Energetic Insurance, said.
This sizable financing will bolster the reliability and equitability of the nation’s electricity system by providing the infrastructure for a more decarbonized and distributed energy future.
