Acadia Infrastructure Capital

Congratulations to the Arevon team! Acadia is pleased to have supported Arevon by structuring and sourcing a $79 million preferred equity commitment to the Peregrine Energy Storage Project!

Acadia is excited to announce that Oleg Shamovsky is set to join our team as Partner. Oleg brings over 18 years of experience to the team, including 10 years helping build KKR's infrastructure investment business in?Europe?and the?Middle East.?His deep investment experience in global infrastructure will support the scaling of Acadia's energy transition investment strategies and capital formation initiatives. https://lnkd.in/e3tU3wzj

Acadia is thrilled to announce a new Coalition, anchored by Microsoft, to unlock billions of dollars in renewable energy investments and uplift communities across the U.S. ? The Climate and Communities Investment Coalition has already started putting capital to work, and we're excited to keep co-creating financing structures that accelerate renewable deployment while doing good for historically-excluded communities. By pairing corporate capital with that of our investment partners, we strive to bring much-needed scale to community benefit programs that deliver lasting impact. ? This program has many partners to thank—especially the Microsoft?team?and the ever-inspiring folks at Sustain Our Future. ? We're just getting started—you'll hear more from us soon... https://lnkd.in/eF_D8a6m

Congratulations to @Matrix Renewables on the successful close of its $376 million financing for Stillhouse Solar, a 210MW Texas solar project to be built in Bell County, Texas. Acadia is proud to have sourced equity and facilitated Microsoft’s purchase of EACs for the project, and to have worked with Sustain our Future to steward nearly $3 million in community benefits grants as part of the project. Projects like this are the building blocks of a sustainable energy future and underscore Acadia’s strategy to facilitate investments in North America’s energy transition. Transaction press release: https://lnkd.in/dqv2cU2v

Hotseat in the C-Suite?? Proximo has gathered C-Suite level execs across the energy spectrum for a series of back-to-back interviews taking place on the main plenary stage! We’ll grill them on how they are looking to remain resilient in the face of the rising cost of capital, increased concern over climate change, and approach the energy transition! Introducing our esteemed panellists: - Susan Nickey, Executive Vice President and Chief Client Officer, @HASI - Tim Short, Managing Partner, Acadia Infrastructure Capital - Adam Barsky, Executive Vice President, Chief Financial Officer, New York Power Authority Moderated by: Michael Whalen Managing Director, Berkeley Research Group (BRG)?? Final call ??? Email [email protected] if you are interested in attending!?? Proximo Subscribers get 30% off. Learn more here https://lnkd.in/emeMyEvc #ProximoUS24??

We'll be in Houston for Infocast's Tax Credits & Transferability summit this week, where Tim Short will be discussing takeaways from a recent solar financing that included a tax credit transfer. What are the primary motivators for CSOs/CFOs in tax credit transactions, and how do these come together? What role can investment tax credits play in a company's ESG and climate commitments? How can companies expand the ways they meet emissions reduction targets? Join the discussion Thursday morning! Planning to be in Houston this week? Reach out to jturner[at]acadia-infra.com to set up a meeting.

We're making plans for the Tax Credits & Transferability Summit in September, where our Managing Partner Tim Short?will be discussing takeaways from a recent solar financing that includes a tax credit transfer. ? What are the focal points for corporate buyers, and what issues should be addressed in the beginning? What are the primary motivators for corporate leaders, and should some of these factors be reconsidered or considered from a different angle? ? These are just a few of the topics we have begun exploring with tax credit buyers, sellers, and other interested parties. Want to join the conversation? Reach out to jturner[at]acadia-infra.com?to set up a meeting. ? Hope to see you in Houston! https://lnkd.in/ehW_fkgQ

"Sun Machines." Ever cheaper solar, ever more PV supply. It's great, but it's not that simple. We enjoyed the latest special issue of The Economist and especially the “Sun Machines” article which featured research from Nat Bullard and detailed the unparalleled global production and deployment of solar PV. (https://lnkd.in/gW3VbB3F) We all know the growth in solar has been impressive - here are some of the more notable ways the essay put this growth into perspective: - "In 2004, it took the world a whole year to install a gigawatt of solar-power capacity; in 2010, it took a month; in 2016, a week. In 2023 there were single days which saw a gigawatt of installation worldwide. Over the course of 2024 analysts at BloombergNEF expect to see 520-655GW of capacity installed: that’s up to two 2004s a day." - "According to the International Solar Energy Society, solar power is on track to generate more electricity than all the world’s nuclear power plants in 2026, than its wind turbines in 2027, than its dams in 2028, its gas-fired power plants in 2030 and its coal-fired ones in 2032." In our view, this is great for many markets - but not all markets are created equally. Solar PV cost declines are - very generally - great news for: (i) emerging economies struggling with access to affordable energy; (ii) low solar penetration markets, such as those further north or south of the equator; and (iii) residential solar (subject to local utility tariffs). For high PV penetration markets, such as the U.S. southwest, the cost declines are only as valuable as our grid's ability to use that cheap energy. Curtailment has long been rising in CAISO and ERCOT. Duck curves are emerging in increasingly more power markets. Thus, we feel this trend in solar PV highlights the importance of a diversified energy infrastructure base that includes low-cost clean energy but can balance intermittent supply by incorporating energy storage, natural gas generation, new transmission and smarter grid solutions. The “what ifs” are endless.

As election talks heat up, we believe both political parties are influenced by positive economic impacts. In 1Q24 alone, the U.S. added 11 GW of new solar module manufacturing capacity, accounting for 75% of all new electricity-generating capacity added to the U.S. grid. All but 2 states reported solar installations. The growth in capacity translates to real benefits to local economies. Nearly 25% of the 210 large-scale clean energy projects announced in the IRA’s first year are planned in rural areas, estimated by E2 to create over 46,000 jobs each year for 5 years during the construction phase. This translates to over $3 billion in total labor income annually, generating almost $1 billion in federal, state, and local taxes in rural communities each year. (https://lnkd.in/e8Xp_vbH) We believe that tax credit provisions are needed to drive the clean energy transition, and the positive impact on local economies, combined with the support from voters of all parties, will bolster support for the IRA in the political arena. While our political leaders disagree about the importance of climate change, there is more common ground when it comes to some specific policy proposals, including tax credits. Further, voters continue to broadly support the IRA’s major policies, even if not fully understanding the breadth of the bill. It’s going to be an interesting year. What are your predictions for the future of the IRA, and specifically the transferability of tax credits?

The US Treasury just confirmed there are more ways for corporations to directly profit from sustainability initiatives. Here’s how that works, why, and how to get involved. — Last week, Treasury issued proposed guidance on technology-neutral clean electricity credits. So, what does that mean - and why are we seeing it? The Inflation Reduction Act (IRA), which creates incentives for US taxpayers to invest in clean energy projects, had long contemplated the introduction of a “technology-neutral” credit. To put that simply, this means that the range of projects that qualify for production or investment tax credits is defined more generally, focusing on achievement of net zero greenhouse gas emissions impacts instead of specific technologies such as wind, solar, energy storage and so forth. Why does this matter? As an industry, we’ve become used to technology-specific criteria for qualification. Similarly, corporations capturing this value have been limited to acquiring tax credits primarily from solar, wind and storage projects. And, to be clear, that will be the lion’s share of tax credits in the coming years. Taking a longer term view, however, what is particularly important during this time of unprecedented changes in expected US load growth (we enjoyed EPRI's report on "Powering Intelligence" last week, (https://lnkd.in/efq7waeV)) – is that the proposed guidance paves the way for newer technologies not yet fully developed. Those solutions can now expect to have access to the most critical form of clean energy financing in US, once commercialized at scale. They no longer face the uncertainty of inclusion in an existing tax credit regime, so long as they represent net-zero solutions.