SoftBank’s Renewable Energy Platform Receives $600 Million Equity Investment from Ares
SB Energy has secured more than $4 billion in tax equity and project financing since its inception
March 10, 2022
SB Energy, SoftBank Group’s U.S. Climate Infrastructure Technology platform, announced that funds managed by the Infrastructure and Power strategy of Ares Management Corporation are leading a strategic equity investment of up to $600 million in the company, including capital from potential co-investors.
The investment intends to help both companies to drive innovation in the sector and deploy clean energy at scale.
SB Energy plans to deliver 10 GW of renewable energy and storage projects in operation or under construction by the end of 2025. Since launching in the U.S. market in 2019, the company claims to have completed development of, financed, and started construction on nearly 1.7 GW of utility-scale solar projects, of which 1.3 GW are currently providing clean, reliable energy to Texas and California.
“SoftBank launched SB Energy to accelerate access to reliable, cost-effective, renewable energy. Combining AI and technology with renewable deployment at scale is critical to the energy transformation and benefits people across the globe. Our new investment from Ares brings together Ares’ climate infrastructure experience, SoftBank’s AI and technology ecosystem, and SB Energy’s track record of execution into a single platform to deliver flexible renewable energy at scale,” said Michel Combes, CEO of SoftBank Group International.
SB Energy maintains it is aggressively growing its renewable energy and storage project pipeline through greenfield development, partnerships, and acquisitions, while also expanding its digital and technology capabilities. Since its inception, SB Energy has forged partnerships with financial institutions to secure more than $4 billion in tax equity and project financing to develop and build renewable projects and make further investments in the clean energy transition.
Milbank LLP served as outside counsel to SB Energy, Kirkland & Ellis LLP served as outside counsel to the Ares-managed funds, and Morrison & Foerster LLP served as outside counsel to SoftBank on the transaction.
Recently, SB Energy had announced that it had placed a multi-year order for 1.5 GW of First Solar’s thin-film solar modules. SB Energy will deploy these modules across its 4 GW solar and storage development pipeline in the U.S.
In October 2021, Adani Green Energy Limited acquired a 100% stake in SB Energy’s Indian arm from SoftBank Group and Bharti Group. The deal valued SB Energy India at about $3.5 billion (~₹260 billion). SB Energy India has 5 GW renewable assets across four states in India through its SPVs. The portfolio holds 1,700 MW of operational renewable assets, 2,554 MW of assets under construction, and 700 MW of assets nearing construction.