TCG to acquire majority stake in D2C clean energy provider CleanChoice
True Green Capital Management (TGC) has agreed to acquire a majority stake in CleanChoice, a US-based direct-to-consumer (D2C) clean energy provider, for an undisclosed sum.
The renewable energy infrastructure investment firm will also offer dedicated capital to finance the solar development pipeline of CleanChoice.
The acquisition will propel the growth of CleanChoice as the only 100% independent green gen-tailer outside of the US operating on both sides of the value chain having solar generation assets as well as offering renewable power to consumers across a range of market segments across the US.
True Green Capital Management will keep the CleanChoice brand and its team and will invest an additional $100 million of capital in developing and acquiring, owning as well as operating the latter’s solar power projects.
True Green Capital Management to acquire majority stake in D2C clean energy provider CleanChoice. Photo courtesy of CleanChoice Energy, Inc.
CleanChoice currently has a development portfolio of more than 300MW at different stages of development. It is actively seeking acquisition and co-development opportunities within the regions of its interest.
The agreement will extend True Green Capital Management’s reach and include the generation of solar electricity across 16 US states including Pennsylvania and Ohio with around 215,000 residential clients. The first focus will be in the ISO-NE and NYISO as well as the PJM markets.
The purchase of CleanChoice confirms the commitment of True Green Capital Management to speedily, effectively, and economically expand renewable energy generation. The acquisition also highlights the potential of an under-utilized opportunity to connect the renewable energy generation owned by True Green Capital Management with renewable retail supplies.
Bo Wiegand — True Green Capital Management Partner and Co-Founder said: “We are thrilled to partner with CleanChoice on their journey to becoming a fully integrated green utility.
“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.”
The partnership will improve CleanChoice’s retail operation by ensuring long-term access to capacity, power as well as RECs and lessening exposure to commodity markets for wholesale and establishing energy savings for the business, and introducing distinct renewable products.
The next five years of CleanChoice will be devoted to developing the infrastructure, building, and operating its portfolio of projects, and supplying more customers with simple, easy, and convenient clean energy that is 100% free of pollution.
Tom Matzzie — CleanChoice CEO said: “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.
“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.”
The deal is expected to be completed within the next 60-90 days.