Innovation in Finance - Clean Energy BC 2019 Generate Conference
Updated: Dec 18, 2019
With climate action and sustainability top of mind for those working in the energy industry, the timing for RE Royalties to participate in the Clean Energy BC 2019 Generate Conference was perfect.
The conference welcomed over 300 guests to Vancouver, B.C. from November 6 – 8th to collaborate, network and share their knowledge with others in the industry. Our team kicked off the event at the Ice Breaker Reception and we reconnected with project developers/owners/operators, First Nations leaders, policy designers, fellow innovators and young aspiring professionals.
Our entire team participated in the conference for 3 days and we had a booth at the tradeshow.
We shared how we help developer’s get financing for their renewable energy projects and how anyone who wants to make a sustainable impact can invest in our clean energy projects. You can find us on the stock exchange under the symbol TSX.V: RE
Peter Leighton, Co-Founder and Chief Operating Officer of RE Royalties, discussed our innovative finance model on a panel session, alongside Jay Brogan, Biologist at Hemmera; Clay Howey, Technical Lead on the Smart Microgrid research initiative at BCIT; and Anna Stukas, Engineer at Carbon Engineering.
He provided an overview of innovation and discussed how RE Royalties is redefining innovation by financing renewable energy projects. We have taken a model that is well proven over time in other industries, but we are the first to apply it to the renewable energy sector on a global scale.
The bottom line: It is hard to raise capital to develop projects. That’s where we come in!
Sourcing financial capital for renewable energy leaders is a crucial issue for new projects that want to get off the ground quickly to take climate action. A small, or start-up company can rarely source capital by borrowing from a commercial bank, and accessing capital is the biggest hurdle to getting renewable energy projects built.
Addressing the Developer’s Conundrum
The projects that RE Royalties invest in are helping to solve the world’s climate issues and create a more sustainable economy. RE Royalties helps their clients by taking a unique approach with the royalty-financing model to fill a gap in the renewable energy finance market.
Peter shared an example of how RE Royalties recently provided financing to a company in Ontario to help their solar project portfolio move forward. From an impact perspective, this portfolio generates approximately 17.5 million kilowatt hours of clean energy per year; capable of removing 874 tonnes of carbon from the electricity grid or providing clean electricity to 1,943 homes in Ontario annually.
This developer reached out to RE Royalties in early 2019 because they needed additional financing to complete approximately fourteen projects. They already had an extensive portfolio of operational solar projects and were in the process of developing several more. However, their financing timeline was taking longer to complete than anticipated and, due to political changes in Ontario, there was a risk they might not meet key milestone dates with the end result that they were at risk of losing their FIT contracts for those projects.
Fortunately, our team was able to help them by providing a short-term loan that also included a royalty over their existing operational projects. This creative financing solution allowed them to achieve the milestones they needed in order to ensure that the new carbon-offsetting projects got built (indirect impact), while also providing RE Royalties with a stake in their projects that were already producing clean energy (direct impact).
How RE Royalties Delivers Low risk, High Return, High Impact for Investors
RE Royalties was asked by many attendees how they could make a positive impact with their investments. If your intention is to have your portfolio make positive contributions towards fighting climate change, then investments through RE Royalties that focus on high impact, efficient use of money to reduce emissions in fossil fuel rich environments will make the impact you’re looking for.
Peter also shared details on the research that Tiff Macklem, Chair of the Expert Panel on Sustainable Finance, has conducted in his Q&A. The Panel issued its final report on Sustainable Finance, Mobilizing Finance for Sustainable Growth, earlier this year.
A lot of the recommendations in the report discuss what we need to do to bring sustainable finance to scale and how we can determine the particular products in the marketplace that would be relevant to Canada given the structure of our economy.
Our team left the conference feeling very inspired by this this year’s keynote speakers including, Honourable Scott Fraser, Minister of Indigenous Relations and Reconciliation; Dr. Andrew Weaver, Leader of the BC Green Party & MLA Oak Bay-Gordon Head; and Tzeporah Berman, International Program Director at Stand.Earth.
We wrapped up the conference with a closing reception with music by Brothers Grant. Thanks for a great conference Clean Energy BC, we will definitely be back next year!
RE Royalties is a publicly traded company on the TSX Venture Exchange under the symbol "RE". This public listing allows retail investors to purchase RE Royalties shares and participate in the large and growing renewable energy market. An investment in RE Royalties provides shareholders with strong capital returns, growth and a stable distribution, all while helping reduce global greenhouse gas emissions.