A U.S. developer, owner, and operator of distributed energy infrastructure announced it has received an $857-million capital infusion to accelerate growth of its distributed solar energy program.
Dimension Energy, headquartered in Atlanta, Georgia, in mid-August said the additional funding comprises a $200-million upsize of the company’s corporate credit facility, together with a $657-million construction-to-term debt and tax equity financing package. Lead lenders include Nuveen Energy Infrastructure Credit, along with funds and accounts managed by HPS Investment Partners.
“These new commitments from our financing partners reflect the strength of our platform,” said Rafael Dobrzynski, co-founder and CEO of Dimension Energy.
The company in a news release said the upsized corporate facility brings Dimension’s total corporate credit facility to $650 million. It also provides additional flexibility to advance the company’s distributed solar pipeline, enabling projects to move from development into construction.
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The group said the $657-million financing package will provide construction debt and tax equity financing for a portfolio of 29 distributed solar projects across Illinois, New Jersey, New York, Pennsylvania, and Virginia, totaling 149 MW. Advantage Capital served as tax equity investor. The debt package was led by MUFG Bank, First Citizens Bank, ING Capital, and National Bank of Canada, each serving as Coordinating Lead Arrangers, with Fifth Third Bank as Joint Lead Arranger.
The funding builds on Dimension’s momentum after the company closed a $650-million portfolio financing earlier this year. “This capital will enable us to keep scaling with discipline and speed at a moment when demand for distributed power has never been higher,” said Dobrzynski.
Don Dimitrievich, global head of Nuveen Energy Infrastructure Credit, said, “Dimension has built a distributed solar platform with the execution discipline and portfolio quality that gives us confidence to scale alongside them. With power demand accelerating and transmission and distribution costs rising alongside generation costs, distributed solar is well positioned to deliver reliable power closer to load. Upsizing our commitment reflects Nuveen Energy Infrastructure Credit’s continued conviction and confidence in Dimension’s ability to execute at scale, and we’re excited to keep supporting their growth given the market opportunity.”
“We’re pleased to partner with Dimension Energy as the company continues to scale its distributed solar platform,” said Tom Bitting, managing director at Advantage Capital. “The Dimension team has built a strong track record of moving quality projects from development through construction. We’re proud to provide tax equity that supports that growth and helps bring reliable, affordable power to more communities across the country.”
Fred Zelaya, managing director at MUFG, said, “MUFG is pleased to support Dimension Energy’s latest solar portfolio, which will provide long-term sustainable energy to various communities across the U.S.”
Dimension currently owns more than 600 MW of distributed energy assets operating and under construction. The company has said its funding supports the company’s growth to 1 GW of operating assets by 2028. Dimension is owned by Partners Group, one of the largest firms in the global private markets industry, with $185 billion in assets under management.
—Darrell Proctor is a senior editor for POWER.
