Hannon Armstrong Sustainable Infrastructure Capital has invested in an approximately 1.6 gigawatt (GW) onshore wind and utility-scale solar portfolio developed and managed by Clearway Energy Group.
The large-scale renewables portfolio includes 874 megawatts (MW) of onshore wind, 192 MW of utility-scale solar, and 557 MW of utility-scale solar with 395 MW of co-located storage (seven projects in total) located in four states: California, Hawaii, Texas, and West Virginia.
The partnership combines Hannon Armstrong’s expertise in providing long-term investment for climate solutions with the world-class development and asset owner-operator experience of Clearway Energy Group.
“We are pleased to expand our relationship with Clearway Energy Group through a preferred equity investment in this portfolio of renewable assets. Clearway’s mission to accelerate the world’s transformation to a clean energy future is aligned with our purpose as a climate-positive investor. These assets will be a significant addition to our portfolio, offering increased scale and diversity to our business and supporting continued growth in recurring Net Investment Income.”Hannon Armstrong chairman and CEO Jeffrey W. Eckel.
“We are thrilled to partner with Hannon Armstrong on such an impactful portfolio transaction. This geographically diverse portfolio of wind, solar, and energy storage projects represents the economic opportunity of renewable energy in every corner of this country. Taken together, more than 2,500 American jobs will be created to build and operate these clean energy assets, which will go on to supply clean low-cost power to hundreds of thousands of households and businesses across the United States. This agreement with our investment partners will be pivotal in Clearway’s continued ability to provide clean energy at the scale our country demands while helping to deliver on investors’ growing interest in climate change solutions.”Craig Cornelius, chief executive officer at Clearway Energy Group.
In accordance with the terms of the investment, which reached financial close on December 21, 2020, Hannon Armstrong will hold a preferred equity interest in a number of holding companies owning the cash equity interests in individual portfolio operating projects and will participate in the cash flows from such projects.
Hannon Armstrong has funded approximately $200 million of its investment to date and anticipates funding the remaining portion in 2021 and 2022. Once fully funded, Hannon Armstrong’s total investment in the portfolio will be approximately $663 million.
The remaining ownership of cash equity interests in the holding companies will be held by Clearway Energy, a publicly traded affiliate of Clearway Energy Group focused on ownership of modern, sustainable, and long-term contracted assets across North America. Clearway Energy Group will continue to manage the assets and provide operations and maintenance services.