Goldman Sachs’ Alternative Energy Investing Group’s Investment in ENGIE North America

Cohn Reznick Capital Markets group acted as financial advisor to ENGIE, and Sheppard Mullin Richter & Hampton and Hunton Andrews Kurth were the transaction legal counsels for ENGIE and Goldman Sachs, respectively.

ENGIE North America’s Distributed Solar team today announced the closing of an investment from Goldman Sachs’ Alternative Energy Investing Group into a partnership managed by ENGIE.

This innovative financing structure will allow the deployment of up to 75 MW of distributed solar and distributed solar plus battery systems across multiple states in the U.S., including California, Nevada, Minnesota, Illinois, Texas, New York, New Jersey, and Massachusetts.

The partnership is unique as Goldman Sachs’ investment provides both the scale and benefits of what is typically provided by separate investments from tax equity, debt, and sponsor equity investors. It also provides ENGIE with a simplified approach to raising long-term capital for the development and growth of its U.S. distributed solar platform. ENGIE will retain an ownership interest in the portfolio, and will construct, manage, and operate the assets.

The portfolio comprises behind-the-meter installations that will provide power to commercial and municipal customers, and small-scale front-of-the-meter projects with rural electric cooperatives under previously signed long-term Power Purchase Agreements (PPAs).

The investment will be deployed over a period of twelve months, and some projects will begin to provide solar power to the customers under these PPAs immediately. The projects were developed and completed by ENGIE North America’s Distributed Solar and U.S.-based Services teams to meet the growing demand by customers for solar and storage solutions that support their businesses and communities.

Sheppard Mullin advised ENGIE in the transaction with a team including Andrew Ratts (Picture), Katherine Gillespie, Matthew Bonovich, AJ Gatesman and Alexander Robinson.

Involved fees earner: Matt Bonovich – Sheppard Mullin; AJ Gatesman – Sheppard Mullin; Katherine Gillespie – Sheppard Mullin; Andrew Ratts – Sheppard Mullin; Alexander Robinson – Sheppard Mullin;

Law Firms: Sheppard Mullin;

Clients: ENGIE North America;

Author: Ambrogio Visconti