Bridging the Gap in VPPA Financing: Energetic Capital's EneRate Credit Cover Expands

Business Wire

Building on Early Transaction Success, EneRate Credit Cover Brings Confidence and Capital Efficiency to the Expanding VPPA Market.

BOSTON--(BUSINESS WIRE)--
Energetic Capital is proud to formally announce the expansion of its flagship product, EneRate Credit Cover, into the growing virtual power purchase agreement (VPPA) market. This groundbreaking credit insurance solution addresses the unique challenges of VPPAs by mitigating offtaker credit risk, enabling developers to unlock competitive financing terms for renewable energy projects.

Demand for virtual and corporate power purchase agreements is increasing. The result is that the pool of offtakers entering into these agreements is getting larger. More sub-investment grade and unrated counterparties are emerging as buyers under these agreements. Multiple lenders, sponsors, and advisors have engaged Energetic to enhance offtaker credit and supplement credit support for such transactions.

“With this expansion into the VPPA market, Energetic Capital is setting the stage for new opportunities in renewable energy finance,” said Jeff McAulay, CEO of Energetic Capital. “Our innovative products not only provide critical risk mitigation but also drive competitive financing terms.”

Energetic’s VPPA product is an extension of the EneRate Credit Cover product and demonstrates the multiple ways credit insurance can be used facilitate project deployment. Energetic Capital has leveraged EneRate Credit Cover to support over $800 million in renewable energy projects across 1,500 sites nationwide, avoiding 115,000 metric tons of carbon emissions. With backing from a top-five global reinsurer and $15 million in venture funding from Fortune 100 and Fortune 400 companies, Energetic Capital continues to redefine renewable energy finance.

NOTE: This Press Release does not constitute and is not intended by Energetic Capital or any of the entities mentioned in this release to constitute a solicitation for any insurance business.

About Energetic Capital (www.energeticcapital.com)

Energetic Capital is a specialty financing company with a novel, data-driven approach to develop new risk management products to unlock investment in the renewable energy industry. Our first product, EneRate Credit Cover®, unlocks renewable energy project financing for unrated and below investment grade counter parties by covering counterparty credit risk. In 2023, Energetic added lending capabilities in order to provide more solutions for its customers.

Headquartered in Boston, Energetic Capital was awarded a SunShot Prize from the US Department of Energy in 2017 and has received a total of $5M in financing to date. EneRate Credit Cover™ and other insurance policies are issued by RE3 Energetic Insurance Solutions, LLC, or SiKey Insurance Services, LLC in New York, wholly-owned subsidiaries of Energetic Insurance, Inc. d/b/a Energetic Capital. Energetic Capital complies with all state-mandated regulations for surplus line insurance brokers and RE3 Energetic Insurance Solutions, LLC is licensed as a surplus lines broker in Massachusetts with License #: 2053916.