Solar developer Intersect receives $750M investment from private equity firm TPG
One of the leading US solar project developers announced Tuesday a $750 million equity investment from climate-focused private equity fund TPG Rise Climate.
The announcement from TPG is part of the firm’s initiative to invest in climate change and clean energy on behalf of clients that include large pension funds and insurance companies who want to do more for the environment. Henry Paulson, chairman of the climate fund’s board of directors and former U.S. Treasury Secretary, said it had raised $7.3 billion earlier this year.
San Francisco based Intersect Power LLC said the new financing will help expand its portfolio of clean energy projects from the current 2.4 GW to over 8 gigawatts, enough electricity to power nearly 1.5 million homes.
Its CEO said it will also allow the company to launch new businesses such as green hydrogen and wind power. Hydrogen is considered “green” when it is produced using renewable energy such as solar energy.
“This is an indication that a physical infrastructure company can drive growth,” Intersect CEO Sheldon Kimber said in an interview. Said. “You know $750 million is a lot of money, but when you look at the scope and scale of our ambition, it’s a fair amount.”
TPG Partner Ed Beckley said in a statement that funding was drawn to Intersect’s track record of completing major solar projects and its unique business model. Unlike many other solar developers, Intersect retains ownership of their projects rather than selling them to third parties and spearheads shorter-term contracts with higher investor returns.
Kimber said Intersect also relies heavily on First Solar’s (NASDAQ:FSLR) local solar panel supply, which helps protect it from the latest disruptions in its global supply chain that are challenging the fast-growing solar industry.