Clean energy financing for commercial and industrial companies
Photo: Clean energy system installed using financing model, Yamaha store, Costa Rica.
The expansion of distributed generation in the commercial and industrial sectors is critical to the clean energy transition. The recent $5MM common equity investment by Deetken Impact Sustainable Energy (DISE) in Greenlease CO, S.R.L., a subsidiary founded in 2019 by the Costa Rican company greenenergy®, will drive growth of photovoltaic solar systems with storage and photovoltaic micro-grids for commercial and industrial companies in Costa Rica. Greenenergy® specializes in financing systems that will allow businesses to produce, store and manage their own electrical energy, in order to be more efficient, resilient to increases in electricity rates, and above all, environmentally sustainable. The collaboration between DISE and greenenergy will bring more clean energy finance for commercial and industrial companies that want to give a step towards sustainability.
There is more interest in distributed generation in Costa Rica than ever before, driven in part by recent legislation regulating distributed power generation in the country and greater recognition of the potential cost savings and environmental benefits. Greenenergy has a 13-year track record in the industry, and will leverage Deetken Impact Sustainable Energy’s funds’ equity with senior debt to finance the immediate US$24 MM pipeline, expanding their portfolio while increasing returns.
Investment’s positive impact
As Fernando Alvarado, CEO of Deetken Impact Sustainable Energy notes: “Following the enactment of important updates and improvements to the Costa Rican legal framework for distributed electricity generation with renewable energy sources, we see substantial dynamism in the market, especially in the Commercial and Industrial sector. We are keen on supporting leading companies offering tailored turnkey solutions that contribute to achieving energy resilience, lowering the cost of electricity, and generating measurable social and environmental impacts. We believe that by supporting Greenenergy’s proactive and professional approach we will contribute to achieving our investment objectives while ultimately benefiting the end users seeking quality and durable solar PV and battery storage installations.”
Moreover, Fernando Ortuño, General Director of greenenergy®, mentions that “Today, the worldwide energy trend in industries and businesses is the installation of photovoltaic microgrids and photovoltaic solar systems with energy storage batteries, for the effectiveness in reducing electricity costs and increasing the energy security of the sites. Being able to facilitate clean energy financing to Costa Rican companies thanks to funds such as those that DISE will invest, is key to the sustainable economic, social and environmental growth of these companies and the country”.
This collaboration will allow tailor-made financing ranging from zero upfront investment leasing, to offering energy savings through operating structures such as Energy as a Service (EaaS) and Microgrids as a Services (Maas), depending on the needs and interests of the industries and businesses.
Supporting the Sustainable Development Goals
This investment is expected to contribute to a number of United Nations Sustainable Development Goals (SDGs) including Affordable and clean energy (SDG 7), Industry, innovation and infrastructure (SDG 9), and Climate action (SDG 13), by expanding access to renewable energy generation to different sectors of the Costa Rican economy and in turn mitigating the effects of climate change. Additionally, the investment will contribute to Decent work and economic growth (SDG 8), as the expansion of both Greenlease and greenenergy® represents an increase in gender-inclusive, well-paid jobs that will set a benchmark for other companies to follow.