North America-focused energy investment firm continues portfolio growth with commercial operation of four solar projects under the Rhode Island REG program
NEW YORK: Captona Partners, a North America-focused investment company specializing in power generation and energy infrastructure, announced today the commencement of commercial operation of four of its solar assets under Rhode Island’s Renewable Energy Growth (REG) program, further expanding the company’s North American portfolio.
Captona partnered with developer Southern Sky Renewable Energy RI, LLC on the four projects and brought in 1st Source Bank to provide the construction loan, perm debt, and tax equity for these projects. The four assets commenced commercial operation in October and will be delivering power to National Grid through a 20-year tariff under the REG program. Captona considers these projects a strategic investment in the middle-market renewables sector. The firm used its in-house design platform to ensure optimal performance and will operate the assets through its internal O&M and Asset Management groups.
“Our partnerships were key to this successful project—1st Source showed tremendous flexibility despite changing project costs and tax laws, demonstrating why they are the top-tier debt and tax equity partner for these types of projects,” said Captona’s founder and managing partner, Izzet Bensusan. “And Southern Sky’s deep experience in the region was invaluable in working through the challenges of development from the greenfield stage through leasing, permitting, procurement, and construction.”
Rhode Island’s REG program was created to support the development of 560 MW of new renewable energy projects in the state between 2015 and 2020. It has now been extended through 2029, with an annual target of 40MW of new capacity each year.
“This project builds on our strong development relationship with Captona,” said Russ Cramer, Vice President of Solar Financing at 1st Source Bank. “We previously provided permanent debt for a 2017 Captona solar project that has shown great performance thus far and we have been pleased with Captona’s operational capabilities. We are excited to finance strong solar projects in Rhode Island as well as increase our involvement in the Northeast.”
“Southern Sky is proud to lead another successful development in Rhode Island and continue our ongoing collaboration with Captona,” said company president Ralph A. Palumbo. “As the leading solar developer in the state, we will continue to support the green economy in Rhode Island through the REG program and others that support the Governor’s clean energy goals.”
Captona Partners is a North America-focused investment company specializing in power generation and energy infrastructure assets. The firm targets investments across multiple power generation technologies, including renewable energy assets like solar, wind, biomass, and run-of-river hydro as well as conventional power assets like gas-fired generation facilities. The team actively pursues risk-adjusted returns from acquisitions of operating and development opportunities within these sectors with the intent to create value through technical and financial restructurings.
As investors, developers, and operators in the energy sector, Captona possesses deep industry-specific expertise, resources, and relationships permitting us to successfully navigate the ever-changing energy landscape. Our integrated, multi-disciplinary team allows us to successfully address the needs of our customers and the communities we operate in as well as create significant value for our investors.
About Southern Sky Renewable Energy RI
Southern Sky Renewable Energy RI, a Rhode Island based company, is the leading solar developer in the state with over 100,000 panels installed and 200,000 panels installed in New England with a pipeline of 296 MWs. They have worked with numerous municipalities in Rhode Island and Massachusetts to reduce energy costs and return landfill and brownfield sites to economic use.
About 1st Source Bank
1st Source Corporation, parent company of 1st Source Bank, has assets of $6.29 billion and is the largest locally controlled financial institution headquartered in the northern Indiana-southwestern Michigan area. The Corporation includes 80 banking centers, 22 1st Source Bank Specialty Finance Group locations nationwide, eight Wealth Advisory Services locations and ten 1st Source Insurance offices. For more than 150 years, 1st Source has been committed to our mission of helping our clients achieve security, build wealth and realize their dreams. For more information, visit www.1stsource.com.