Renewable energy infrastructure investor True Green Capital Management announced the acquisition of a majority stake in CleanChoice Energy, a retail energy provider and community solar aggregator to residential and commercial accounts.
The investment from TGC is expected to fuel CleanChoice’s solar business across the value chain, from owning solar generation assets to selling renewable energy. TGC said it will maintain the CleanChoice brand and team, and will invest an additional $100 million in acquiring, owning, and operating solar projects.
CleanChoice currently has a development portfolio of 300 MW of solar projects in various stages of development. The company said it is actively pursuing acquisition and co-development opportunities across the ISO-New England, NYISO, and PJM markets.
“We continue to believe that the combination of green customers with solar power development and asset ownership will be paramount in the clean energy transition regime we operate,” said Panos Ninios, managing partner and co-founder of TGC. “In CleanChoice, we have found a best-in-class management team with a unique multi-year track record in combining solar power development with a proprietary customer acquisition and management platform.”
TGC said CleanChoice’s business model demonstrates the attractiveness of a largely untapped opportunity to pair owned renewable generation with renewable retail supply. The investment is expected to scale its retail business by securing long term access to power, capacity, and renewable energy credits (RECs) and by reducing exposure to wholesale commodity markets.
“It was important for us to find a mission-aligned buyer who shares our commitment to empowering customers and building a greener future,” said Tom Matzzie, chief executive officer, CleanChoice. “We have found that in TGC, and we look forward to rapidly expanding our farm-to-table clean energy offerings.”
The transaction is expected to close in 60 to 90 days. CIBC Capital Markets served as financial advisor to TGC and DLA Piper served as counsel to the investor. Guggenheim Securities served as financial advisor and Pillsbury Winthrop Shaw Pittman LLP served as counsel to CleanChoice.
Founded in 2012, CleanChoice is a certified B-Corporation that describes itself as the first 100% green “gentailer.” The company pairs renewable energy generation with direct-to-consumer retail offerings in deregulated states that allow retail energy.
TGC, based in Westport, Conn., has raised four private equity funds since forming in 2011 with over $1 billion in equity capital. This includes the May 2022 closing of the investor’s fourth fund with over $660 million of capital to be deployed over the next four years.
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