Goldman Sachs Forms JV to Develop Distributed Solar Projects

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US -based TELOS Clean Energy has announced the closing of a JV with Goldman Sachs to develop, construct, own, and operate distributed solar power projects.

TELOS Clean Energy has announced the closing of a joint venture (JV) with Goldman Sachs’ Alternative Energy Investing Group to develop, construct, own, and operate distributed solar power projects. The solar projects will be expected to sell power to commercial, industrial and municipal customers.

Goldman Sachs can invest up to USD 275 million to finance the activities of the joint venture and own assets, combining financing provided by several parties via tax equity, debt, and sponsor investments into a single capital source. TELOS will provide the development and construction expertise necessary to originate, execute and asset manage the portfolio.

Vivek Kagzi, of Goldman Sachs’ Alternative Energy Investing Group, said “this joint venture with Telos is an example of our commitment to investments in the distributed solar space and affirms our strategy of providing comprehensive financing solutions to sponsors. We have been impressed with the track record of the Telos principals and look forward to working with them to build upon their success.”

The joint venture brings on former partners of Greenskies Renewable Energy, including TELOS’ CEO Andrew Chester and head of business development, Michael Daly. “We are thrilled to be working with the Alternative Energy Investing Group at Goldman Sachs. Specialising in the development, construction, and asset management, this joint venture will allow us to scale and execute at pace,” said Chester.

In October 2019, we had reported that Distributed Solar Development (DSD), the business-backed by BlackRock Real Assets’ Global Renewable Power platform and GE Renewable Energy, had announced the closing of a USD 250 million fund financed by Morgan Stanley, Silicon Valley Bank and Fifth Third Bank to fund a portfolio of distributed generation projects through 2020. The fund was raised after DSD’s announcement of its partnership with BlackRock Real Assets and GE Renewable Energy.

Erik Schiemann, CEO at Distributed Solar Development had said at the time “our ability to partner with some of the world’s leading financial institutions underscores the importance of alternative energy as a business driver and as a force for environmental responsibility.”