Microgrid growth in Canada
Spring Lane Capital’s recent announcement offers an example of animation in Canada’s market.
With offices in Boston and Montreal, the private equity firm is investing CA$100 million in Canadian distributed energy projects as part of a partnership with AltCrest Energy, a Toronto-based developer, and Development Engine Partners.
In many ways, Canada looks like the US, with demand for power growing from data centers, onshoring of manufacturing, and electrification. But there is one big difference, as Jason Scott, partner at Spring Lane Capital, points out:
“The Canadian government continues to support the growth of renewable energy systems from a policy perspective, making Canada an attractive market to operate and deploy capital.”
It’s a pretty straightforward example of favorable government policy attracting investors.
The joint venture will focus on rooftop solar PV, geothermal, microgrids, and battery energy storage systems for institutional real estate owners and large corporate entities, using an energy-as-a-service model. The joint venture funds 100% of the development and construction costs, sparing building owners from paying upfront capital, while offering a hedge against rising grid energy prices