CleanCapital backs Alaska-based solar project
CleanCapital is backing Alaska-based solar developer Renewable IPP with a commitment to fund one of the state's largest solar projects to date.
Why it matters: CleanCapital is moving upstream from its typical pre-construction, post-development solar projects for a better chance at retaining owner-operator level returns.
What's happening: CleanCapital, a mid-market renewables project financing group, has invested an undisclosed amount in Renewable IPP in addition to its commitment to finance a 8.5-MW solar project in Alaska.
- Currently, Alaska's biggest solar plant generates roughly 1.2 MW of power, making the Renewable IPP project by far the largest in the state.
- Matanuska Electric Association, a local utility, has committed to purchasing the new plant's power once completed. Construction is set to begin in 2023.
- CleanCapital will remain an owner-operator in the project throughout its life cycle, chief commercial officer Julia Bell tells Axios.
- The financial terms of the deal were not disclosed.
The intrigue: Alaska isn't exactly the first market that comes to mind for solar-project construction, but electrifying the Last Frontier is key to national net-zero goals.
What we're watching: Bell says the Inflation Reduction Act has reinvigorated the solar-project-financing landscape after a volatile summer of supply chain issues.