Energetic Capital has enabled permanent financing for one of the most significant solar developments in the ERCOT market, supporting a nearly 400MW utility-scale project in Texas through its flagship EneRate Credit Cover insurance product. The project, backed by a significant renewable energy developer, is expected to generate enough clean power to supply more than 75,000 homes each year.
The transaction highlights the growing role of credit insurance in facilitating liquidity and expediting the completion of major renewable energy projects across the United States. EneRate Credit Cover provided credit support for a 20-year Virtual Power Purchase Agreement with an unrated corporate offtaker, insuring settlement payments due to the project. This structure allows the corporate buyer to avoid posting additional collateral while preserving balance sheet efficiency. For lenders, the coverage increases the proportion of income that can be recognized in debt sizing, allowing for greater loan proceeds and a more efficient capital structure.
The project’s financing reflects a growing shift in how developers, financiers, and corporate energy buyers manage counterparty credit risk in long-term power purchase agreements. Energetic Capital’s approach is designed to simplify the bankability of large renewable projects and help advance infrastructure that will supply clean power to communities nationwide.
The company emphasized that the press release does not constitute a solicitation for insurance business. Energetic Capital, headquartered in Boston, develops risk management products designed to support the deployment of renewable energy.
The company received the SunShot Prize from the US Department of Energy in 2017 and has raised a total of $5 million in financing. Its insurance policies, including EneRate Credit Cover, are issued through RE3 Energetic Insurance Solutions or SiKey Insurance Services in New York, both wholly owned subsidiaries of Energetic Insurance d/b/a Energetic Capital.
KEY QUOTE:
“This transaction highlights the growing role of credit insurance in unlocking liquidity and enabling large-scale renewable projects to reach financial close. By addressing credit risk within complex power purchase structures, our products make it easier for developers and lenders to move critical energy infrastructure projects forward to serve communities and end-power users of all profiles.”
Nathan Maggiotto, President, Energetic Capital
