CVE North America and AVANA Capital have successfully closed construction financing totaling $57 million for the 31.3-MW portfolio of six solar photovoltaic projects in the U.S. Principals of the NextPower Capital team served as financial advisors to CVE on the transaction.
The CVE SMART Portfolio consists of six assets with a capacity of 31.3 MW in Massachusetts, which qualified for the SMART program. The CVE SMART Portfolio helps to fulfill the vision of tomorrow’s energy models carried out by CVE: decentralized production of renewable energy, sold directly to consumers through private contracts to respond to the needs of businesses and local authorities. This financing consolidates CVE’s long-term industrial presence in Massachusetts and the expansion of its community solar offering.
The CVE SMART Portfolio will provide power and solar credits through “Halo,” CVE’s branded offering to a pool of off-takers comprised of residential and commercial customers.
“We are delighted to have supported CVE’s solar energy project expansion in the United States through the funding of these six solar PV plants. AVANA Capital is dedicated to furthering clean energy across the country and looks forward to continuing our partnership with CVE for many years to come,” said Sanat Patel, co-founder and managing director of AVANA Capital.
“Our team has seen tremendous growth in the solar industry in North America, particularly in renewable energy-focused states such as Massachusetts,” said Walter Cuculic, senior VP and head of AVANA Capital’s Renewable Energy Group. “It is our mission to continuously augment this growth through strategic funding opportunities. Our team is dedicated to this effort and to increasing our impact in this arena.”
“By closing this financing and launching the construction of this first portfolio, CVE is now strengthening its presence and its balance sheet in North America as CVE already did with success in Chile,” said Cyril Gilot, investment director of CVE Group. “We are sincerely grateful to our financial partners, AVANA Capital and Next Power Capital, which have enabled us to get the CVE SMART Portfolio over the line.”
“The Next Power Capital team was proud to put its extensive network of financiers and robust expertise in financing renewable projects to good use by accompanying CVE, an out-of-the-country developer, on its first financing steps on the North American continent,” said Benjamin Cook, manager partner of Next Power Capital.
Community Solar in Massachusetts is driven by the SMART program, which began in early January 2018. It is a long-term (20-year) sustainable solar incentive program to promote cost-effective, high-value solar development where it is needed most. The program provides fixed incentives and compensation adders for eligible solar developers.
CVE currently has 16 projects in development in Massachusetts and New York state, totaling 82 MWDC.
“In the coming years, we plan to keep a steady pace of development of around 80 MW per year, reaching a renewable generating capacity of 350 MW by 2024,” said Thibaut Delespaul, VP of CVE North America.
News item from CVE North America