The first transactions from the NY Green Bank, part of the New York State Clean Energy Fund, have been announced. They focus on CHP and distributed generation and sees the bank partner with private-sector lenders to support projects that cannot otherwise access commercial financing.
Among the seven transactions announced in the first tranche are GreenCity Power, LLC (GCP), a business which designs, builds, owns, and operates small-scale cogeneration projects in New York City’s largest commercial buildings. GCP’s projects will deploy natural-gas-fired reciprocating engines and NY Green Bank will co-invest, along with Tulum Management, in GCP’s first five projects. Once a target portfolio of operating projects has been developed, institutional investors are expected to provide permanent financing.
Also announced was a co-investment relationship between Bank of America Merrill Lynch (BofA Merrill) and NY Green Bank that seeks to expand and enhance BofA Merrill’s capabilities to finance public- and private-sector clean energy projects, including renewable energy, energy efficiency and combined heat and power.
Terms of the deals are still being finalized and NY Green Bank is working to close the transactions by year-end.
New York governor, Andrew M. Cuomo, said these initial transactions, supported and agreed to in principle, will ultimately produce investments totalling more than $800 million.
Commenting NY Green Bank President Alfred Griffin said, ‘These financing arrangements demonstrate that NY Green Bank’s market-driven approach to supporting clean energy deployment on commercial terms attracts real interest from the private sector. Each arrangement addresses financing barriers in the clean energy market identified by private sector financiers and developers.’