Dive Brief:
- AIP Management, a Netherlands-based energy and decarbonization infrastructure investor is investing $500 million in full-service United States solar company Silicon Ranch, AIP announced Thursday.
- Silicon Ranch, a Nashville,Tennessee-based utility-scale energy infrastructure developer, constructor, owner and operator, has 3.6 gigawatts of operational energy capacity and 3.7 GW of capacity contracted or under construction, according to the April 3 release.
- AIP said the investment “reinforces [its] confidence in the resilience of U.S. clean energy and the strong fundamentals supporting large-scale renewables.” According to the release, AIP joins Silicon Ranch’s existing investors, including Shell, Manulife Investment Management and TD Asset Management.
Dive Insight:
The investment in Silicon Ranch marks AIP’s second investment in an independent power producer, following a previous investment in a European producer, according to the release. Silicon Ranch is one of the largest independent power producers in the U.S., according to Solar Power World, with operations in 15 U.S. states and Canada.
AIP sees opportunity in an expected significant rise in U.S. electricity demand over the next few years “driven by industrial growth, AI and data centres and manufacturing reshoring,” the release said. The Dutch investor believes Silicon Ranch is “well-positioned to play a meaningful role in helping serve the unprecedented load growth.”
“Silicon Ranch is a leading [independent power producer] with profound local expertise, an embedded presence in the communities it serves and a fully integrated approach to delivering clean power at scale,” AIP CEO and Managing Partner Kasper Hansen said in the release. “Our investment supports its continued growth and reflects our confidence in businesses with strong fundamentals and the ability to drive the energy transition forward.”
Silicon Ranch was founded in 2011 and is known for being the first company to deploy utility-scale solar in Arkansas, Georgia, Kentucky, Mississippi and Tennessee, according to the release. In addition to its operational, under construction and contracted energy capacity, Silicon Ranch also has more than 12 GW in its “near- and mid-term development pipeline.” The company aims to have more than 10 GW of operational capacity by 2030.
Silicon Ranch CEO and President Reagan Farr said the investment, along with the support of its other shareholders, will allow the company to execute on its growth strategy and “deliver necessary energy infrastructure, all while helping American communities become stronger, healthier and more resilient.”
“Silicon Ranch is pleased to welcome AIP as our newest strategic partner and eager to add their rich experience in long-term infrastructure investment and deep understanding of our sector to our shareholder base,” Farr said in the release.
As a full-service energy producer — with in-house engineering, procurement and development capabilities, Silicon Ranch is able to “secure premium project locations” and execute long-term power purchase agreements that typically average 21 years in length. That strategy also gives Silicon Ranch the ability “to re-power and re-contract existing assets, yielding additional upside for an increasingly scarce asset class.”
AIP’s investment in Silicon Ranch was announced a few days after another U.S.-based investment for the asset manager. Earlier last week, on April 1, the Dutch investor acquired a 49.99% equity stake in a Texas-based Pine Forest solar and storage project.
The Pine Forest project co-locates a 300 megawatt alternating current solar photovoltaic project and a battery energy storage system project with 2000 MW and 400 megawatt hours of capacity. That project is owned by Clearway Energy Group — which will retain the remaining 50.01% of equity, and AIP’s investment was worth approximately $200 million, according to an April 1 release.
