Greenbacker Capital Management has invested in Dichotomy Power, an owner and operator of hydroelectric power generation stations across the Northeastern US.
It is the third investment for a fund launched this year to provide flexible capital for small and medium-sized renewable energy infrastructure companies focused on developing distributed power facilities in the US.
Founded in 2019, Dichotomy Power owns seven generating facilities and a retail power broker that connects end users to renewable energy resources. It is led by Ian Clark who created Dichotomy Power’s predecessor in 2016 to consolidate small hydroelectric generating assets.
The company is now owned by Clark, the Greenbacker fund and a vehicle managed by Grand Avenue Advisors.
Hydroelectric power generates about 80 GW of electricity across the US, or about 7% of total generating capacity. Ownership of small hydro facilities – with less than 10 MW in generating capacity – is highly fragmented.
Benjamin Baker, managing director and principal at Greenbacker, said: “We are proud to support the further development and progress of hydroelectric power generation through our investment in Dichotomy Power.
“We believe the company is uniquely positioned, with its existing facilities across the Northeast as well as the steady and experienced leadership of Ian Clark and his team, to drive long-term growth and value creation. Going forward, Greenbacker stands ready to offer our financial and technical expertise to help Dichotomy Power reach its full potential.”
Clark, CEO of Dichotomy Power, said: “I am thrilled to welcome Greenbacker as a strategic partner that shares our passion for the potential of renewable energy. With its help, we will strengthen our ability to identify attractive hydroelectric assets and optimize their performance through a unique combination of regulatory, technical and financial knowhow. We look forward to accelerating our growth trajectory and working tirelessly toward our mutual success.”
