Segue Sustainable Infrastructure announces the closing of three development capital investments totaling ~$40M and a development pipeline of over 3,200 MW of solar and battery energy storage assets throughout the United States. Segue has now committed 40% of its $100M+ Segue Renewables 1 investment vehicle.
SAN FRANCISCO, March 3, 2022 (Newswire.com) - Segue Sustainable Infrastructure, LLC ("Segue") today announced the formation of development partnerships and financial close of three development capital investments totaling ~$40M. Segue's development partners will use these facilities to advance the development of over 3,200 MW of solar and battery energy storage assets in CAISO, ERCOT, MISO and the Northwest. With the signing of these deals, Segue has committed 40% of its Segue Renewables 1 investment vehicle.
Segue launched in July 2021 to provide early-stage development capital to renewable energy project developers. Early-stage development assets often face difficult capitalization decisions which force developers to sell their projects prematurely. Lack of alternatives and the capital intensity of project development compel some to "flip" projects before they have reached the development stages that garner robust valuations and seller-friendly transaction structures. Segue endeavors to provide development capital facilities and a style of partnership that "bridges" these assets to higher valuation points.
"Segue was built to identify savvy developers with good ideas, empower those people and ideas with capital, and then help them maximize the realized value of their matured projects when the time is right," said David Riester, Managing Partner at Segue. "The incredible partners we've closed with, and the development assets that we are building together with them, are great endorsements of this approach."
Segue invests in a variety of developer profiles, ranging from established companies where the promise of their pipeline has outpaced balance sheet liquidity, to brand new outfits founded by individuals spinning out of the industry's larger firms. The investments made to date offer a representative cross-section of this spectrum.
Consulting firm Wood Mackenzie forecasts approximately 74,000 MW of new utility-scale solar and 38,000 MW of new battery energy storage systems will be built in these markets by 2030. Demand for clean dispatchable power - from regulated utilities, retail energy providers, and corporations - continues to exceed available supply; assets like those that Segue's partners are developing will help to bring more low-cost clean energy supply to meet buyer demand.
About Segue Sustainable Infrastructure
Formed in 2021, Segue Sustainable Infrastructure ("Segue") is a principal investment firm providing development capital to renewable energy projects and the infrastructure enabling them. Segue is a team of industry veterans who have converted frontline renewable energy development experience to a third-party investment model built on providing developers the capital and support they need to turn ideas into power plants. Segue makes its investments out of a ~$100M investment vehicle. For more information, visit www.segueinfra.com.