Origis Energy / Renewable Energy Trust Solar Partnership
- Origis Energy (“Origis”) and Renewable Energy Trust Capital (“RET”) entered into a strategic partnership for the development and financing of solar power generation assets in the U.S.
- As part of the transaction, RET acquired Origis’ operating U.S. solar PV portfolio, comprised of three fully contracted projects in Georgia with a total capacity of 24 MW.
- The parties simultaneously entered into a collaboration agreement pursuant to which RET obtained the right to acquire subsequent solar PV projects that Origis develops in the U.S.
ORIGIS ENERGY OVERVIEW
- Origis Energy is a leading integrated global solar project developer, contractor, investor and operator having developed or acquired over 80 MW of solar PV assets in Europe and the U.S.
- Origis performs all engineering, procurement and construction activity, in addition to operating and maintaining all projects that the company develops.
- The partnership provides low-cost financing solutions for Origis and provides access to pre-arranged capital, allowing the company to focus on project development and accelerate its growth strategy.
- The partnership structure also allows Origis to maintain the ability to provide EPC, O&M and asset management services for its solar projects.
RENEWABLE ENERGY TRUST CAPITAL OVERVIEW
- RET is a leading solar and wind project investor backed by Blue Mountain Capital Management, a private investment fund with $19B of assets under management.
- RET has acquired over 100 MW of operating solar PV projects in the U.S. and seeks to partner with leading firms to provide low-cost capital for project deployment.
- The partnership immediately provides RET with cash flow positive assets and captive access to future investment opportunities through a large project development pipeline.
- The partnership can also be expanded outside of the U.S.
- GCA served as the exclusive financial advisor to Origis Energy on the transaction.
- Based on the client’s needs and priorities, GCA helped develop a sophisticated partnership structure.
- Upon deriving the structure, GCA ran a competitive auction process to find the most advantageous capital source for its client and subsequently helped negotiate the formation of the partnership.
- GCA performed an in-depth analysis and comparison of all investor proposals to ensure its client’s needs were met.
- In advising Origis, GCA combined its transaction structuring expertise, in-depth solar and project finance sector knowledge, and intimate understanding of the types of investments capital providers are seeking.
WHAT THE TRANSACTION MEANS FOR THE RENEWABLE ENERGY ASSET SECTOR
- The transaction was one of the first formal partnerships in the U.S. solar sector that created a clear and concise path to asset monetization for developers.
- The structure is replicable and efficiently facilitates the provision of low-cost, long-term capital for the development of solar projects.
- The transaction also provides capital for varying sizes of projects, providing significant and highly valuable flexibility for the developer.
- Enhancing access to reliable, low-cost financing helps expedite and facilitate growth of the broader renewable power generation sector.