ENGIE North America and Hannon Armstrong have formed a partnership to jointly invest in a Distributed Generation (DG) portfolio of solar and solar-plus-storage assets located across the United States.
Courtesy of Engie
The portfolio is comprised of a diversified set of community solar and commercial & industrial (C&I) ground-mounted, carport and rooftop solar and solar-plus-storage projects (around 70 MW in total) located across the U.S., including Massachusetts, Illinois, Vermont, California, Texas, and Arizona.
“ENGIE is pleased to partner with Hannon Armstrong on this portfolio. This new partnership reinforces the ambitions of our organizations,” said Gwenaëlle Avice-Huet, Executive Vice President, in charge of the Renewable and Hydrogen Business Units France. “This program signals further forward momentum as we work alongside our customers towards a carbon neutral future.”
“We are delighted to expand our programmatic relationship with ENGIE with this latest agreement," said Hannon Armstrong Chairman and CEO Jeffrey W. Eckel. “This partnership highlights one of the key strengths of our historic core value proposition to clients of executing on scalable investment solutions for smaller, distributed clean energy projects that are essential to a climate-positive future.”
The agreement will allow ENGIE to rely on committed capital by Hannon Armstrong through December 31, 2021 to finance DG assets across the U.S. ENGIE will retain partial ownership and provide development, construction, operational, asset management, and administrative services. Hannon Armstrong will provide capital to ENGIE through a unique structure that will bring efficiency to a forward flow of projects, leveraging tax equity financing through an upper-tier arrangement with Morgan Stanley.
Distributed generation represents an important piece of ENGIE’s U.S. solar-plus-storage market strategy as it represents a sizable share of the overall non-residential solar-plus-storage market. Distributed clean energy generation, including the community solar projects included in the portfolio, foster access to renewable energy and is a key component of the clean energy targets and ambitions of cities, communities, corporate and utility customers. ENGIE currently owns and operates approximately 300 MW of DG solar assets.