The NY Green Bank, New York’s clean energy finance institution, earned its first profit in 2016 after launching three years earlier with a goal to provide funding that mobilises private-sector investments.
One year ahead of schedule, NY Green Bank made $2.7 million last year from investing $291.6 million in clean energy projects and companies that aim to reduce the state’s carbon emissions. Overall, the finance institution helped leverage $677 million in renewables projects and energy efficiency upgrades last year.
The green bank said any revenue will be reinvested for future transactions.
NY Green Bank is one part of the state’s 10-year, $5 billion Clean Energy Fund, and a component of New York Governor Andrew Cuomo’s goal to meet 50 percent of the state’s energy needs with renewables sources by 2030.
Taking a shot at US President Donald Trump’s administration stance on climate change and support for the fossil fuel industry, Cuomo stated, “As the federal government continues to sidestep funding and support of critical clean energy programs, New York will continue to lead the fight against climate change.”
“We’re pleased by the accomplishments we’ve achieved as an organization, and the positive net income and transaction execution milestones send a strong signal to the marketplace that sustainable infrastructure provides attractive investment opportunities,” said Alfred Griffin, NY Green Bank President.
Some of its notable transactions last year include a $25 million commitment in May to residential solar provider Sunrun to leverage a total of $340 million from private investors led by Investec. It also partnered with Germany's DZ Bank to give $200 million to fund Solar Mosaic's financing platform that allows homeowners to install solar panels for no upfront costs.
Since launching in 2013, the green bank has used public money to spur private-sector investments in clean energy companies. One of its more prominent examples is the $13.5 million commitment it made with US Bank in small-scale wind developer United Wind. A few months later, Forum Equity Partners invested $200 million in the company.