U.S. distributed energy platform Scale Microgrids has announced plans to acquire more than 100 MW of New York community solar projects in late-stage development from CSG-Gutami, a Netherlands-based global clean energy developer.
Scale says it will construct, own and operate the projects as part of its growing pipeline, which is helping New York achieve its goal of 70-percent renewable electricity generation by 2030 and 100-percent zero-emissions electricity by 2040.
The acquisition will expand the amount of affordable solar in Upstate New York and is expected to power more than 15,000 additional homes.
The community solar projects will provide access to sustainable electricity for those who do not own a home or business or might not otherwise be able to afford a standalone solar system, Scale notes.
“We’re committed to providing the simplest path for New Yorkers to participate in clean energy projects,” said Julian Torres, Chief Investment Officer at Scale. “This portfolio of community solar has the capability to reduce annual CO2 emissions by around 160,000 tons, making strides to advance our mission of powering the world with clean, distributed energy.”
Scale Microgrids recently fortified its funding base with a successful $225 million debt facility. KeyBanc Capital Markets and City National Bank acted as joint lead arrangers on the financing round.
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“This transaction endorses our strategy to develop solar projects in New York State from 2020 onwards,” said Gerben Pek, Chief Executive Officer at Gutami. “Supported by the Inflation Reduction Act we will now expand our development activities to other states, preferably states with similar community solar programs. The U.S. is one of the key pillars of the Gutami strategy.”
Scale is a Ridgewood, New Jersey-based vertically integrated distributed energy platform, with a core focus of designing, building, financing, owning and operating distributed energy assets that offer cheaper, cleaner, and more resilient power.
Founded in 2006, Gutami invests in, finances and acquires assets and optimizes asset returns. Its energy solutions include solar parks, rooftop solar, energy storage and hydrogen.
New York political and energy leaders are positioning the state as a welcoming home to community solar project--having approved more than 2 GW in capacity--as it aims for net-zero carbon emissions in coming decades. Community solar involves projects smaller than utility-scale but larger than rooftop or distributed sitings.
OYA Renewables, for instance, has completed close to 38 MW of New York projects put into operation by the end of 2022 (see photo above). It also has numerous projects under construction with the idea of finishing 13 new community solar sites by end of the second quarter this year.
Customers of community solar have the choice whether to subscribe to the output as opposed to more cost-prohibitive home systems or utility projects which lead to occasional rate increases.
