NY Green Bank Transactions will Lead to Approximately $927 Million of Total Investment in Clean Energy Projects in New York During the Year
NY Green Bank today announced that it closed 13 transactions during 2016, which will result in financing for thousands of clean energy projects, including solar, fuel cells and energy efficiency, demonstrating it is building momentum and filling a significant need in expanding clean energy financing markets in the State. The projects are expected to create new jobs in New York’s clean energy economy, while spurring substantial economic development.
“Private sector developers, investors and financial institutions are expressing a strong, ongoing interest in working with NY Green Bank to develop solutions that address financing gaps and barriers, and our 2016 transactions demonstrate the breadth and scope of our work,” said NY Green Bank President Alfred Griffin. “This is an exciting time for the clean energy industry, as capital providers and developers look to advance opportunities for all New Yorkers.”
NY Green Bank’s commitment of more than $250 million during 2016 is expected to stimulate additional private sector clean energy investment in New York of more than $677 million, resulting in a total investment of $927 million from the year’s financings.
Among the transactions closed in 2016 are:
* Energy efficiency upgrades that will reduce costs at nine school buildings and one administrative building in Northport, Long Island, saving the district more than $1 million annually. This approach to energy efficiency equipment lease financing can be replicated at municipalities, universities, schools and healthcare facilities.
* A commercial solar project on a brownfield site, the first in a planned ~$30 million portfolio of commercial and industrial projects supported by NY Green Bank. By standardizing financing for commercial and industrial solar projects, NY Green Bank is making them more “bankable” by private sector standards, which will result in lower costs.
* Financing for up to 1,300 fuel-cell systems that will replace lead-acid batteries in forklifts at distribution centers across New York. This financing establishes a greater track record for this business model and technology to ultimately broaden the availability of financing from banks and other capital providers.
Collectively, NY Green Bank transactions will result in thousands of residential solar systems and efficiency projects and increased financing of these types of projects by private sector capital providers that will reduce energy costs over time.
NY Green Bank’s total investment in 2016 was 52 percent more than its goal for the year, an indication that it is stimulating clean energy project development in the State significantly faster than expected. Prior to 2016, NY Green Bank had closed just over $54 million in financing for clean energy projects.
From its inception through the end of 2016, NY Green Bank had closed 18 transactions, committing $305 million which will result in approximately $1.26 billion in total clean energy projects in New York State. Its current project portfolio is expected to reduce greenhouse gas emissions by up to 5.4 million metric tons – equivalent to taking 60,000 cars off the road for the next 19 years – helping the State achieve its goal of a 40 percent emissions reduction by 2030.
New York State Chairman of Energy and Finance Richard Kauffman said , “NY Green Bank is doing the job it was created to do – filling financing gaps to spur private sector investment in clean energy in the State. It is achieving this by making renewable energy resources easier to finance Statewide, reducing costs for residents and businesses.”
By expanding the use of renewable energy and energy efficiency, NY Green Bank transactions support the State’s Clean Energy Standard, which mandates 50 percent of all electricity come from renewable sources by 2030. Energy efficiency supports the Clean Energy Standard by reducing the overall amount of electricity the State consumes.
The transactions also support Governor Cuomo’s Reforming the Energy Vision strategy to build a clean, resilient and affordable energy system for all New Yorkers and the State’s goal to reduce greenhouse gas emissions 40 percent by 2030 from 1990 levels.
NY Green Bank is a division of the New York State Energy Research and Development Authority (NYSERDA). John B. Rhodes, President and CEO, NYSERDA, said, “NY Green Bank’s significant progress this past year demonstrates the strong and growing interest in clean energy project investment in New York under Governor Cuomo’s leadership. These NY Green Bank financings are creating clean energy jobs and helping New Yorkers reduce their carbon emissions, energy use and energy costs.”
NY Green Bank’s current active portfolio (i.e., transactions where there is agreement in principle between parties and momentum to move the transaction toward final execution and closing) includes: community solar; energy storage; biomass; anaerobic digestion; residential energy efficiency; residential solar, commercial and industrial solar; municipal, university, school and hospital energy efficiency; and microgrids.
To view more information on NY Green Bank transactions visit NY Green Bank.