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Conergy establishes tax equity fund to help finance renewable plants

Goal is to expand US renewable energy project business by around 50 MW.

Conergy has set up its first fund, Conergy Fund I, with an initial target volume of USD 100 million for qualified renewable energy projects in the United States. A Fortune 500 bank in the USA will provide 100 per cent of the initial debt, equity and any tax equity financing for the solar projects of the joint venture.

Conergy Fund I provides financing for projects with capacities typically larger than 500 kilowatts and up to 25 megawatts. Conergy (or its partner) acts as project developer and -- as the engineering, procurement and construction service provider -- is responsible for planning, engineering and design; power plant construction; and the subsequent operations and maintenance management. The Fund is also responsible for credit rating, financial analysis, administration and finance as well as billing and collecting on power purchase agreements and full construction financing.
 

According to Anthony Fotopoulos, CEO of Conergy, the Conergy Fund I will make resources available at a time when consistent funding is difficult to obtain. “Conergy has been working on a financing solution for months, and this fund is the first step in our new strategic set-up and a milestone in expanding our large-scale projects business in the dynamically growing North American market," he explained. "Solely with the financial resources the fund provides, we can realize around 50 MW of power plants."

 

 

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