eDGe Renewable executive outlines JV with Correlate Infrastructure targeting DG and microgrid projects
eDGe Renewable Partners and Correlate Infrastructure Partners are strategically targeting distributed solar and microgrid projects in their 50/50 joint venture which will provide up to USD 100m in non-dilutive project capital to developers nationwide.
As previously reported, the JV, referred to as Distributed Energy Capital, will provide small to mid-size developers early-stage development capital, technical and engineering resources that advance their projects to completion.
"Distributed Energy Capital offers both capital and technical support for microgrid and distributed energy developers," Correlate's CEO Todd Michaels told NPM. "This will unlock a massive untapped market of developers who do not have the team, financing or technical resources to develop distributed energy projects and take it to the finish line, facilitating the transition to clean energy nationwide while creating significant value to the investors, developers, and off-takers."
Since the official launch a few weeks ago, the JV has already begun negotiations with about five developers, said Bahaa Samy, CEO and Founder of eDGe Renewable Partners, in an interview with NPM.
Samy said the typical partner will already have a good relationship with a utility, county, municipality, university, or school district, and has already taken the first steps of negotiating a project. Distributed Energy Capital will then enter the mix by providing the developer with various resources including permitting support, project design, engineering, or negotiating a PPA.
Samy said they are focused on microgrids, typically 10 MW projects and above because of their value.
“We are focused on microgrids because we believe in the need for a smoother energy transition process, and we know that investors are very interested in it from a risk perspective as it provides a viable solution for the interconnection queue issues,” Samy said. “It also helps our developers create value because of its complexity requiring engineering and technical customization which gives it a proprietary nature as opposed to the standard C&I project that allows for significant competition from installers and eventually erodes profitability.”
Samy said microgrids are complex and require an intimate amount of understanding, however they pose lower risks to investors and from a sustainability and climate change point of view—they are an effective solution to expedite the transition into clean energy.
“Transmission and distribution queues have been an obstacle to the development of renewable energy projects and investors and developers are frustrated with the lengthy application and approval process," Samy said. "Microgrids offer a viable solution for the interconnection backlog issues.”
eDGe Renewable Partners are financial managers for renewable energy entrepreneurs and have worked with more than 50 developers since their inception in 2021. Their partners have headquarters or projects that span 25 states--mainly in the Northeast, Midwest, and Southwest. Their partners include Cooperative Energy Futures, Verde Solutions, Gridscape, and Savesolar, according to their website.
They've deployed over USD 500m in equity and debt capital, over USD 2bn in acquisitions, and over USD 1bn in project development. They have more than 2 GW of solar and storage projects under development. While some developers are working on microgrids, the vast majority are community solar, utility-solar, RNG, biomass, and green hydrogen projects, according to Samy.
*This story was originally published exclusively for NPM subscribers last month.
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