Startup EnergyRe Raises $1.2 Billion for Transmission Development, Renewables

energyRe, an independent U.S. clean energy developer, has raised a $1.2 billion capital package to support the expansion of its large-scale renewable energy portfolio comprising utility-scale transmission and storage, onshore wind and solar generation, and offshore wind. 

The package includes committed capital investments in energyRe LLC from Glentra Capital alongside co-investors Novo Holdings and Denmark-based pension fund PKA. Glentra will leverage its experience in developing and constructing renewable energy assets in the U.S. to support the energyRe team in expanding its development pipeline and delivering on its growth plan.

In addition, a firm agreement has been reached with Elia Group for the acquisition of a stake in a subsidiary of energyRe: energyRe Giga. The European transmission specialist will be offering its experience in the development, construction, operation and maintenance of offshore transmission infrastructure; HVDC technology; transmission planning; and congestion management to the partnership. The capital package also includes a mandated corporate debt facility to be arranged by Santander and Deutsche Bank.

energyRe’s diversified portfolio of renewable assets includes a development pipeline spanning 17 states and comprises more than 500 miles of high-voltage direct current (HVDC) transmission; 10.5 GW of solar, wind, and storage; and more than 155 MW of distributed generation.

“Through this agreement, Elia Group (via WindGrid USA) is entering the U.S. markets alongside an established partner with a solid portfolio of projects. This partnership with energyRe Giga is part of Elia Group's growth strategy in Europe and the United States, since the group is focused on expanding its activities abroad and strengthening the development of sustainable energy solutions," said Catherine Vandenborre, Interim CEO of Elia Group.

energyRe is advancing several renewable energy projects across the United States. It is a partner on Clean Path NY—a public-private collaboration to develop 3,800 MW of new wind and solar power and a 175-mile, underground 1,300 MW HVDC transmission line. Clean Path NY is meant to advance New York State’s Climate Leadership and Community Protection Act, which mandates a zero-emission electricity sector by 2040, 70 percent renewable energy generation by 2030, and economy-wide carbon neutrality. Upon operation, Clean Path NY will purport to deliver more than 7.5 million MWh of emissions-free energy annually and reduce fossil fuel-fired electric generation in New York by 22% per year on average. 

energyRe is also a development partner on the SOO Green HVDC Link—a 350-mile interregional transmission line that will connect the midwestern (MISO) and eastern (PJM) power markets and enable the delivery of 2,100 MW of renewable energy—enough to power more than 1.5 million homes. By delivering wind and solar power to the nation’s largest electricity market, SOO Green will significantly decarbonize the regional electric grid and enhance system reliability and resiliency.

energyRe is an affiliate of Related Companies, a prominent real estate company in the United States and a creator and preservationist of affordable housing.

BofA Securities served as placement agent and Lazard Frères & Co. LLC. served as financial advisor to energyRe.