Generate Capital discusses esVolta acquisition
In an interview with NPM, Generate Capital Managing Director David Perl discussed the firm’s recent acquisition of storage developer esVolta and how the firm is viewing the market today as more storage is deployed across key markets.
Perl says Generate has a history of investing in battery storage since the company was founded in 2014, though those early investments largely centered on the behind-the-meter market. However, this new acquisition of grid-scale storage developer esVolta marks a significant step for Generate as its entrance into the front-of-meter market.
Currently, esVolta has an active portfolio of over 900 MWh of operational and utility-contracted projects in the US and Canada. The firm’s largest project to date is the 75 MW/300 MWh Hummingbird Energy Storage project in San Jose, California which is contracted with Pacific Gas & Electric (PG&E).
“Generate has known the esVolta team for many years,” Perl said. “We have deep experience investing in assets with wholesale power market exposure, which made esVolta a great cultural and strategic fit.”
Perl says following the acquisition, though esVolta will continue to be managed by the company’s founder and president Randolph Mann and his current team. He says he expects the firm to continue to work through its current 10 GWh project pipeline across North America with projects under active development in key storage states like Texas and California as well as other developing states including Arizona, Montana, Virginia, Colorado, Washington, and New Mexico. Perl says this acquisition points to Generate’s acknowledgement of the growth of the storage market in the US.
“Generate invests with a long-term orientation,” Perl said. “We believe strongly that the energy storage market is poised for significant growth as more renewable energy is deployed across the US and we felt this was a unique opportunity to partner with a leading team and platform to enter into a market in which we are familiar with both the technology and revenue model.”
This acquisition is the latest development in a busy summer for Generate. Back in June, the company also provided USD 200m in growth equity and USD 300m in project financing to Pine Gate Renewables along with a minority stake purchase of the firm. On August 9, Generate also agreed to provide USD 200m in financing for Ting Fiber, a subsidiary of TSX-listed Tucows, in order to help accelerate its buildout of next-generation communications infrastructure to municipalities across the United States.
*This story was originally published exclusively for NPM subscribers last month.
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