True Green Capital Management LLC (TGC), has acquired a majority stake in CleanChoice Energy.
The acquisition will fuel CleanChoice’s growth as the first 100% independent green gen-tailer in the US, operating at both ends of the value chain by owning solar generation assets and selling renewable energy to customers in multiple competitive markets across the country.
TGC will maintain the CleanChoice brand and team and invest an additional $100m of capital into developing, acquiring, owning, and operating CleanChoice solar projects.
CleanChoice currently has a development portfolio of over 300MW in various stages of development and is pursuing acquisition and co-development opportunities across its territories of focus. The deal will expand TGC’s footprint to include solar power generation in 16 US states, including Pennsylvania and Ohio, along with approximately 215,000 residential customers. The initial focus will be in the ISO-NE, NYISO, and PJM markets.
“We are excited to welcome CleanChoice into our portfolio,” said managing partner and co-founder of TGC Panos Ninios. “We continue to believe that the combination of green customers with solar power development and asset ownership will be paramount in the clean energy transition regime we operate in.
“In CleanChoice, we have found a best-in-class management team with a unique multi-year track record in combining solar power development with a proprietary customer acquisition and management platform.”
The acquisition of CleanChoice underscores TGC’s commitment to quickly, reliably, and cost efficiently expand renewable energy generation and demonstrates the attractiveness of a largely untapped opportunity to pair owned renewable generation with retail supply. The combination will enhance CleanChoice’s retail business by securing long term access to power, capacity, and RECs and reducing exposure to wholesale commodity markets, setting up operational savings and differentiated renewable products.
“This is a significant milestone for CleanChoice, and it was important for us to find a mission aligned buyer who shares our commitment to empowering customers and building a greener future,” said chief executive of CleanChoice Tom Matzzie. “We have found that in TGC, and we look forward to rapidly expanding our farm-to-table clean energy offerings and, with their support, making clean energy more accessible to more people.”
“We are thrilled to partner with CleanChoice on their journey to becoming a fully integrated green utility,” added partner and co-founder of TGC Bo Wiegand. “We see this as a natural extension of our firm’s community solar strategy – providing more customers with access to locally-generated renewable energy, while also enabling high quality retail offtake for our project assets.”
CleanChoice’s next five years will be focused on developing, constructing, and operating its project portfolio and providing more consumers with easy, convenient, 100% pollution free energy. The transaction is expected to close in the next 60 to 90 days.
CIBC Capital Markets served as exclusive financial advisor for TGC and DLA Piper served as legal counsel in connection with the transaction. Guggenheim Securities, LLC served as exclusive financial advisor and Pillsbury Winthrop Shaw Pittman LLP served as legal counsel to CleanChoice.