Society & Community Sustainable Development Policies & Frameworks Financing for Sustainability

Generate Capital’s $1 billion raise draws global infrastructure funds to cleantech

Financing for Sustainability

Generate Capital, the cleantech infrastructure investor, has revealed that it had raised $1 billion in equity and debt finance. Its success holds important lessons for cleantech financing.

  • Generate became an early investor in asset classes that conventional lenders shied away from, including fuel cells, anaerobic digesters, behind-the-meter battery storage, electric buses, microgrids and unconventional solar projects.
  • New energy technologies tend to scare away investors that want to see long track records of performance in the field. Solar panels have earned that trust, so investment decisions on solar projects have largely shifted to assessing the credit-worthiness of the off-taker.
  • The $1 billion fund raise by Generate marks a new degree of involvement in clean energy projects from pension and sovereign wealth funds that are much higher than typical investments from the venture capital sector - investors include AustralianSuper, Queensland Investment Corporation, British fund Railways Pension and Swedish pension fund AP2.