Capacity: 152 MW
Location: Texas
Operational: 2020 (est.)
Estimated Annual Generation: 320 GWh
Total Projects: 2
Background and The Problem:
Alpin Sun GmbH ("Alpin") is a large solar developer that originates, designs and permits solar projects for public and private utilities and large corporates entities. Alpin Sun had a portfolio of four solar projects (352 MW total) in Texas that were in the late stage of development. In order to continue development of the projects, they needed interconnection deposits and additional development funding to get the projects to the ready to build stage. Once ready to build, Alpin planned to sell to a third party to build and operate.
Our Solution:
RE Royalties set up a US-based entity, RER US 1 LLC, of which approximately 20% is owned by RE Royalties and the remainder by private investors. RER US 1 LLC then acquired a 50% equity interest in each of the four projects from Alpin and committed to funding its portion of further development and any necessary interconnection deposits. As part of the transaction, RER US 1 LLC also received a 2% gross revenue royalty on all four projects for a period of 20 years.
Update:
In December 2018, Alpin and RER US 1 LLC sold two of the projects (200 MW) to an arms-length party. As part of the sale, the royalties on both projects were also bought out. Ultimately, the funding provided by RER US 1 LLC allowed for development to progress enough that these projects became attractive enough to be purchased by a long-term owner who had access to the capital necessary for construction.
RER US 1 LLC still has a 50% interest in the remaining two projects (152 MW) and continues to develop them in partnership with Alpin.
Learn more about Alpin Sun here:
Website: http://www.alpin-sun.de/
Social Media: LinkedIn - Alpin Sun
RE Royalties' royalty financing solutions are designed to provide renewable energy operators and developers with the financial flexibility to grow without resorting to dilution, asset sales or restrictive debt covenants. Learn more about our project financing options here.
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