Key Takeaways
Greenbacker continued to execute on project build-out, bringing online 211 MW of pre-operating assets and increasing its revenue-generating operating fleet by 15%, year-over-year.
Total operating revenue of $58 million represented a 14% year-over-year increase, primarily driven by a 20% increase in clean power generation from the Company’s operating assets, which produced 916,000 MWh in the quarter.
Wind and solar fleets both drove greater year-over-year production, as two dozen pre-operating solar assets entered commercial operation and wind repowers added to fleet performance.
$41 million raised in vehicles managed by Greenbacker’s investment management segment, Greenbacker Capital Management (“GCM”) during the quarter, boosting fee-earning AUM to over $760 million; aggregate AUM was $3.7 billion.
Company plans to significantly increase operating fleet over the next four years by completing the development and construction of its pre-operating assets, supporting the continued growth of long-term, predictable revenue and cash flow.
Company’s investments continued to support sustainability, abating 7.2 million metric tons of carbon emissions, saving 7.0 billion gallons of water, and supporting over 6,800 green jobs.
Greenbacker Renewable Energy Company LLC (“Greenbacker,” “GREC,” or the “Company”), an independent power producer and energy transition-focused investment manager, has announced financial results1 for the second quarter of 2024, including year-over-year increases in revenue, operating capacity,2 and clean energy generation.
Greenbacker continued to execute on the build-out of its portfolio of projects, increasing its operating fleet 15% year-over-year by converting 211 MW of pre-operating projects into operating assets generating revenue and cash flow
Over the period, Greenbacker continued to execute on one of its primary objectives: completing construction on the pre-operating assets under its control, converting them into revenue-generating operating assets.
Year-over-year, the Company’s independent power producer (“IPP”) business segment placed 211 additional pre-operating megawatts (“MW”) into commercial operation, growing its operating fleet by over 15%.
As of June 30, 2024, the total capacity of GREC’s operating fleet had increased to 1.6 gigawatts (“GW”) of assets generating revenue and cash flow through the sale of clean energy.
Total operating revenue of $57.9 million in the second quarter represented a 14% year-over-year increase, driven by significant production increases
During the quarter, this increased capacity contributed to Greenbacker’s total operating revenue of $57.9 million—a year-over-year increase of 14% that amounted to an additional $7.1 million of operating revenue.
Revenue from the sale of clean energy within the IPP segment totaled $50.3 million in the quarter, approximately 90% (or $44.9 million) of which came from the Company’s long-term power purchase agreements (“PPAs”).
Funds From Operations (“FFO”) was $10.0 million for the period and represents $22.1 million of Adjusted EBITDA less cash interest expense and distributions to our tax equity investors. The net loss attributable to Greenbacker was $10.8 million, driven by items such as depreciation, amortization, and impairment charges recorded during the period. The year-over-year decrease is primarily related to the allocation of tax equity benefits and losses associated with a large project that was placed into service in the second quarter of 2023, contributing to positive net income attributable to Greenbacker during that period.
The year-over-year increase in revenues was primarily driven by revenue related to greater clean power production from the Company’s fleet of operating assets, which produced over 900,000 megawatt-hours (“MWh”) of total power in the quarter, marking a year-over-year production increase of 20%.
Some figures may not add to stated totals due to rounding. Total clean power generated does not include power produced by other renewable sources.
Solar and wind fleets substantially increased power production, due to additional solar assets brought online and the impact of Company’s wind repowers
During the second quarter, the Company’s solar assets generated 577,000 MWh of clean power, while its wind assets produced 337,000 MWh, representing year-over-year increases of 19% and 25%, respectively.
The year-over-year solar production increase was largely driven by the more than two dozen additional solar assets the Company placed into operation over the past 12 months. These included the 99 MW Fall River project in South Dakota, 50 MW of assets in New York, and Greenbacker’s 6.4 MW Montezuma solar project in Colorado, pictured below.
Greenbacker’s recent wind repower portfolio contributed significantly to the wind fleet’s year-over-year production increase. This was due to two of the portfolio’s three assets being strategically taken offline during the second quarter of 2023 to begin repowering, which temporarily muted production during that period, and because all three projects were fully operational and producing power with new, more efficient turbines for the entire second quarter of 2024.
The repowers are projected to significantly increase Greenbacker’s annual operating revenue for the remaining decades of their estimated useful life.3
$41 million raised in investment vehicles managed by the Company’s investment management segment, GCM, increasing fee-earning AUM to over $760 million
Greenbacker’s investment management (“IM”) business segment, Greenbacker Capital Management (“GCM”), raised $40.9 million for its managed funds during the second quarter, increasing its year-to-date capital raise to $85.1 million.
With this additional capital, fee-earning AUM4 increased to over $760 million, as of quarter end. Aggregate AUM,5 which includes the assets managed for Greenbacker Renewable Energy Company, for which GCM does not receive management fees, was approximately $3.7 billion.
Greenbacker’s IM business segment generated $5.6 million of revenue in the quarter, representing a year-over-year increase of 27%, or an additional $1.2 million of revenue, driven by the increase in fee-earning AUM.
Company plans to significantly increase revenue-generating operating capacity by constructing remaining pre-operating assets over next four years
Greenbacker plans to continue building out its pre-operating fleet. By the end of 2028, as the Company successfully carries out its development and construction plans, Greenbacker expects to substantially increase the capacity of its operating fleet, supporting long-term, predictable growth in revenues, cashflows, and Adjusted EBITDA, as its additional assets become operational and begin producing and selling electricity.6
Capacity figures in this table are rounded to nearest MW. Figures may not add to stated totals due to rounding. The table reflects estimated timelines as of 6/30/24. Figures and timelines may change or be adjusted based on market conditions or other factors.
Company’s investments abate carbon emissions, conserve water, and support green jobs
Along with executing on significant year-over-year increases in revenue, power production, and operating fleet capacity, GREC also continued to deliver on its sustainability goals.
As of June 30, 2024, Greenbacker’s clean energy assets had cumulatively produced over 10.1 million MWh of clean power since January 2016, abating nearly 7.2 million metric tons of carbon.8 The Company’s clean energy projects have saved approximately 7.0 billion gallons of water,9 compared to the amount of water needed to produce the same amount of power by burning coal. Greenbacker’s investment activities will sustain over 6,800 green jobs.10
