Doral Renewables Secures $400 Million Equity Investment From Doral Group

Doral Renewables LLC, a U.S. developer of utility-scale solar and battery storage projects, has signed a $400 million common equity investment from Doral Group Renewable Energy Resources Ltd, a company listed on the Tel Aviv Stock Exchange (TASE: DORL). According to Doral Renewables, this capital is additive to the stake already held by Doral Group in the company, without altering its control structure. The capital raise is part of a capital formation strategy designed to meet the timelines of the U.S. “Safe Harbor” tax provision, which allows developers to secure federal tax credits before they expire. The company says it aims to accelerate the commissioning of new megawatts across the United States. The solar sector has seen a wave of similar financing deals, such as Sonnedix, which raised 730 million euros to finance its solar assets across Southern Europe, or Cox, which won a new hybrid generation and battery storage project in Guatemala. In the United States, RWE and Google recently signed a 155 MW solar power deal in Oklahoma, illustrating the sector’s continued appetite for long-term power purchase agreements.

A parallel equity restructuring

Alongside the transaction, Clean Air Generation LLC, a company wholly owned by Nicholas Cohen, CEO and co-founder of Doral Renewables, will exchange its membership interests in Doral Renewables LLC for a mix of cash and Doral Group stock. Mr. Cohen will nonetheless remain President and CEO of Philadelphia-based Doral Renewables and retain his seat on the Board of Directors. The composition of the Board of Directors and the voting ownership of Doral Renewables will remain unchanged, the company states.

A bet on farming partnerships

“Our investors believe in our commitment to farmers and farming communities,” said Nick Cohen, CEO of Doral Renewables, quoted in the company’s statement. He added that farms are sophisticated businesses and that investing in programs combining agriculture and solar production also benefits the company’s bottom line. According to Cohen, greater cooperation with farmers allows for the development of larger projects and draws institutional investors eager to support the growth of Doral Renewables’ project pipeline.