Politics Aside, Idaho Is A Renewable Energy Powerhouse – CleanTechnica

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Idaho has somehow garnered a reputation as a hotbed for right wing politics and extreme political weirdness, but that is going on the back burner as renewable energy stakeholders eye the state for new projects. In an interesting twist, some of those investor dollars can be traced to the leading global financial firm Blackstone. Any bets on how long it will be until Blackstone gets the BlackRock treatment from public officials?

Blackstone Takes Aim At Renewable Energy

It’s easy to confuse the names Blackstone and BlackRock, especially since both firms got their start under the Blackstone banner before splitting apart in 1994. However, they are two entirely different entities with two different business models.

The political environment surrounding the two firms is also different. Under the renewables-friendly leadership of CEO Larry Fink, BlackRock has become the high profile target of outrage from public officials who subscribe to the anti-ESG movement, which is basically an effort to obstruct investment in renewable energy. In contrast, Blackstone has sailed largely under the anti-ESG radar (see more ESG background here).

That bubble of relative obscurity may be about to bust, now that Blackstone has dipped its private equity toes into the renewable energy pool.

To cite one example, the Blackstone portfolio currently includes the up-and-coming energy storage and hybrid renewable energy developer Aypa Power, which has amassed a project pipeline of 22 gigawatts since launching its first project in 2018. The company states that it was “founded with the purpose of reducing reliance on fossil fuels and making a positive impact in the fight against climate change,” which is sure to set the anti-ESG hair on fire if anyone ever gets around to noticing it.

Aypa and its financial backers certainly don’t seem too concerned. Last November, Aypa announced a $550 million financial package in support of a 100-megawatt battery storage project in California and a 150-megawatt project in Texas. Aypa reported that its lenders were First Citizens Bank & Trust Company, Nomura Securities International, Inc., National Bank of Canada, and MUFG Bank, LTD, with U.S. Bancorp Impact Finance serving as tax equity investor. Both projects will be up and running this year.

More Green Greenbacks For Renewable Energy Storage

That’s peanuts compared to Aypa’s activities this year. On July 31, Aypa described a new $650 million corporate credit facility to up the ante on its previous credit of $320 million. Credit facilities enable developers to access financial support without going through a new application process each time. By more than doubling its credit facility, Aypa indicates an intent to accelerate the pace and scale of its energy transition business.

In another hair-on-fire moment for the anti-ESG set, Aypa lists Apterra Infrastructure Capital LLC, Banco Santander S.A., ING Capital LLC, Nomura Securities International, Inc., Société Générale, and Sumitomo Mitsui Banking Corporation, as “Coordinating Lead Arrangers, Bookrunners, and Green Loan Coordinators” for the new credit facility.

I’ll reach out to Aypa for details on its definition of a green loan. In the meantime, there is no mistaking the green intent of a green loan. As described by the World Bank, green loans build on the Green Bond movement. Qualifying green loans are attached to designated projects that “provide clear environmental benefits.”

The World Bank emphasizes that “clear” is a measurable adjective requiring detailed assessments and transparent reporting.

More Renewable Energy Storage For Idaho

Aypa certainly is not letting the green loan grass grow under its feet. Earlier this week, Aypa announced a new $323 million package in support of the 150-megawatt Kuna battery storage project in Idaho, to be located near Boise in the City of Kuna. Once it goes online in 2025, it will be the biggest battery-type energy storage project in Idaho.

In a press statement Aypa affirmed that a $233 million “green loan” makes up the majority of the financing package, with the remaining $90 million consisting of tax equity.

“Debt financing was led by ING Capital LLC, Société Générale, and Industrial and Commercial Bank of China Limited, New York Branch, each of which acted as Coordinating Lead Arranger and Lender, with Deutsche Bank Trust Company Americas acting as Administrative Agent and U.S. Bank serving as Depositary and Collateral Agent,” Aypa explains. The project’s tax equity investment was led by U.S. Bank subsidiary, U.S. Bancorp Impact Finance.

On his part, Aypa Power CEO Moe Hajabad makes no bones about touting the impact on Idaho’s renewable energy profile.

“It is bold capital investments like this that enable the scaled deployment of battery energy storage technology and make the energy transition possible,” Hajabed said.

To be clear, the new storage project is designated for Idaho Power, which includes natural gas power plants in its portfolio. The company is also in the process of untangling itself from coal. However, the bulk of the company’s nameplate capacity comes from hydropower and other renewables.

More Renewable Energy For Idaho

Circling back around to that thing about right wing politics, earlier this year the Idaho Capital Sun reported that the Idaho House of Representatives passed three anti-ESG bills that include provisions aimed at protecting fossil energy interests.

“The ESG standards can be used to indicate a commitment to environmental stewardship, sustainability or indicate social consciousness,” observed reporter Clark Cobin.

“But many Republican legislators and officials in Idaho have pointed to ESG standards as an example of a woke agenda running rampant following a 2022 visit from conservative pundit Glen Beck, who spoke out against the standards last year at the Idaho State Capitol in Boise,” he added.

Apparently the lawmakers have forgotten all about Idaho’s rich history of supporting renewable energy development as a matter of state policy. The US Energy Information Agency notes that Idaho has not established a formal renewable energy goal, but it does offer a suite of financial support for renewable energy and energy efficiency projects, including systems designed for home use.

The state’s hydropower resources are the primary reason why Idaho ranked an impressive #5 among all 50 states last year, for its high share of renewable energy generation. EIA also notes that the state’s renewable energy profile currently includes a substantial amount of wind power.

Of particular interest is the potential for Idaho to gin up its geothermal activity. In the US, utility-scale geothermal development has been limited to just a handful of states, and Idaho is one of them.

“Although geothermal energy provides less than 1% of the state’s total generation, Idaho’s volcanic landscape has some of the best geothermal potential in the nation,” EIA reports.

To date there is only one utility-scale geothermal power plant in Idaho. However, small-scale geothermal resources are in widespread use for both recreation and renewable energy generation. That includes the City of Boise, which lays claim to the largest geothermal district in the US.

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Image (cropped): Idaho is attracting more investor dollars for renewable energy and energy storage projects, despite public officials who rail against ESG investing (courtesy of Aypa Power).