Capacity: 2MW
Location: Ontario
Operational: 2018-2021
Estimated Annual Generation: 88 GWh
Total Projects: 4
Background:
Switch Power Corporation (“Switch”) is a developer and Independent Power Producer headquartered in Calgary, Alberta, that focuses on capital deployment in long-term infrastructure assets in underserved geographic and customer segments. Switch develops, builds, owns, and operates bespoke sustainable power generation projects consisting of distributed energy resources, with inherent value propositions to customers.
The Problem:
Switch was looking for acquisition capital to purchase a portfolio of operational energy storage projects located in Ontario. They wanted to fund the acquisition with non-dilutive capital that would keep their financing options open as they grow their Ontario energy storage portfolio. Switch also required a financing partner that could work under a compressed timeline to ensure they could meet the transaction closing timeline set during the initial negotiations with the original owner of the projects.
Our Solution:
To help Switch with their acquisition, we provided a $2.3 million loan to finance the purchase of the storage portfolio. Our financing was flexible enough to keep future financing options open, while still being accretive to Switch’s existing shareholders. We were also able to get through due diligence in record time, ensuring the acquisition closed successfully and on schedule.
Trevor White, President and CEO of Switch Power commented,
“This transaction is transformational for our growth into a new market and compliments our electricity as a service value proposition through energy storage, which has huge market potential. We have a growing pipeline of projects and are excited to scale the market and do so through acquiring cash flowing assets. RE Royalties non-dilutive and flexible financing has enabled us to step into this transaction and focus our capital on growth, and we’re excited about the relationship.”
Learn more about Switch Power here:
Website: https://switchpower.ca/
Instagram: https://www.instagram.com/switchpowercorp/
RE Royalties' royalty financing solutions are designed to provide renewable energy operators and developers with the financial flexibility to grow without resorting to dilution, asset sales or restrictive debt covenants. Learn more about our project financing options here.