Scale clinches USD 225m debt for distributed energy portfolio

Ridgewood, New Jersey-based Scale Microgrids has closed a USD-225-million (EUR 210m) non-recourse project finance debt facility for a portfolio of distributed energy projects in a number of US states, it announced last week.

The financing will back the construction and operations of a bundle of microgrids, combined heat and power (CHP) systems, community solar, rooftop solar, battery energy storage systems and microgrid electric vehicle infrastructure projects in California, Oregon, the District of Columbia, Pennsylvania, Delaware, Colorado, North Carolina, New Jersey and New York.

Scale Microgrids described the transaction as a first-of-its-kind energy transition debt facility.

“Microgrids, by their nature, incorporate a number of different technologies - and capital providers’ willingness to step up and support a diverse “first of its kind'' portfolio further supports Scale’s vision of bringing microgrids and DERs [distributed energy resources] to the masses,” said co-founder and chief executive Ryan Goodman.

The projects will provide a range of businesses, schools, municipalities and rate-paying consumers with cheaper, cleaner and more resilient energy, according to the announcement.

“With the closed facility, Scale has increased its access to the debt capital markets, which is a cornerstone of our strategy to deliver microgrids and distributed energy projects at favorable rates,” said chief financial officer Julian Torres.

The financing was arranged by KeyBanc Capital Markets and City National Bank.

(USD 1 = EUR 0.934)

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