US-based power project developer Invenergy has partnered with impact investment platform Lafayette Square to launch a community solar energy joint venture (JV) called Reactivate.
The JV aims to collaborate with local partners to develop small-scale utility solar, community solar, energy storage and electrification projects among others, with the aim of benefitting underserved communities.
Under the agreement, Invenergy and Lafayette Square will provide capital, technical expertise and dedicated executives to build and operate Reactivate.
Reactivate will then finance, acquire, develop and operate solar energy projects that particularly serve low-to-moderate income (LMI) communities.
Invenergy founder and CEO Michael Polsky said: “We are proud to work with Lafayette Square on this venture, which will expand Invenergy’s reach to new communities and advance our mission to build a more sustainable world.
“We look forward to accelerating the clean energy transition with a partner that is as committed to delivering environmental and social benefits to all communities as we are.”
Projects developed by Reactivate are expected to create development, construction and operations jobs while generating revenues for local governments in the form of property tax.
They are also anticipated to create opportunities for minority and women-owned business enterprises (MWBEs).
Lafayette Square founder and CEO Damien Dwin said: “We are excited to partner with Invenergy to increase access to renewable energy and unlock the economic and social potential of local communities.
“By bringing together capital, technology, experienced solar operators and targeted employee training programmes, we believe we can create a more inclusive and localised renewable energy production model benefitting historically marginalised communities.”
Reactivate has set an objective to develop 3GW of renewable energy capacity by 2030 and save $50m in energy costs for LMI households.
The company also aims to sign 100 contracts with minority or women-owned contractors and provide training for 2,500 underserved workers.
Earlier this month, Blackstone announced an investment of nearly $3bn in Invenergy Renewables Holdings.
Invenergy plans to use the funds to expedite its renewable development activities.