How Forbright is helping Puerto Rico transition to 100% renewable energy.
Overview: Forbright successfully raised and syndicated debt facilities for Infinigen Renewables, a subsidiary of ArcLight Energy Partners Fund VII, L.P., (together with its affiliates, “ArcLight”).
Infinigen owns and operates two solar parks in Puerto Rico. Both solar parks are fully contracted under 20+ year term power purchase contracts with the country’s utility – Puerto Rico Electric Power Authority (PREPA) with a goal to transition to 100% renewable energy by 2050.
Infinigen is working with the Puerto Rico Power Authority to transition the island to solar power to be less vulnerable to hurricanes.
- Transitioning to sustainable solar resources is essential for Puerto Rico to enhance safety, reliability, and lower the cost of power.
- As of 2021, only 3% of the country’s energy was generated by renewables with the rest of the distributed energy powered by higher cost imported oil, coal, and fracked gas.
- Under Puerto Rico law (Act 17), PREPA must meet a 40% renewable generation goal by 2025 scaling up to 100% renewable energy by 2050.
- The Forbright financed solar projects help to progress the island’s energy revolution which will provide for cleaner, more storm resilient, and localized power generation.
– Gavin Danaher, Partner at Arc Light (Parent company of Infigen Renewables)
“The relationship with Forbright provides us an opportunity to partner with companies that not only contribute to a lower carbon future, but also have a deep understanding of renewable financing. Forbright and its syndicate partners provided Infinigen capital that will allow the Infinigen platform to develop additional solar projects in Puerto Rico.”
Conclusion: This financing is another example of the role Forbright plays in speeding the transition to a cleaner economy. Supporting ArcLight and its Infinigen solar platform is a key part of Forbright’s mission to finance companies taking action to decarbonize the economy.