EnCap Energy Transition Fund is launching Bildmore, an investment platform focusing on passive minority equity positions for energy transition projects that do not attract traditional renewable tax equity financing, the renewable energy development backer announced in a March 11 press release.
Led by David Haug as CEO, Bildmore expects to make 10 to 15 minority investments every year.
The Inflation Reduction Act’s expansion of tax credit eligibility has put tax equity, historically provided by a limited number of large banks, in short supply.
“For IRA projects, just selling tax credits leaves developer value on the table. Tax equity is great for sponsors who can check all the boxes, but lots of projects don’t fit,” Haug said in the release.
The platform will initially focus on utility-scale projects and back sponsors that cannot meet tax equity requirements but want to improve their economics past transferring discounted tax credits.
“Bildmore will focus on the battery storage and solar projects, particularly those which have chosen to leave all or part of their energy output available for 'merchant' sale rather than be sold under long term contracts. We want to help those development teams lacking the deep balance sheets typically required by tax equity providers,” Haug said.
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