Distributed Generation, Solar, Sourcing Renewables - July 3, 2018
Goldman Sachs buys 204 MW solar portfolio
Goldman Sachs Asset Management signed a PPA for a 204 MW-portfolio of solar energy projects from Marina Energy, a wholly-owned subsidiary of South Jersey Energy (SJI).
A statement from SJI said the agreement includes 76 distributed solar energy projects across 143 sites in Maryland, New Jersey, Massachusetts, and Vermont. Goldman Sachs will pay $350 million in cash for the portfolio. Terms of the agreement call for Marina to sell all projects in the portfolio to Goldman Sachs and lease back certain projects to preserve investment tax credits (ITCs) previously received by the company. Marina will also sell Goldman Sachs the solar renewable energy credits (SRECs) generated by the projects, which will allow SJI to maximize its proceeds from the transaction.
"This transaction represents the latest chapter in our ongoing effort to transform our business by monetizing non-core, non-regulated businesses and increasing investments in regulated assets that provide highly-visible cash flows and earnings" said Michael J. Renna, president and CEO, SJI. "We are pleased to partner with GSAM in transitioning these high-quality assets to new ownership."