Structural Benefits:

With Project Opdyke’s commercial operation date targeted for Q2 2025, the Project has been substantially derisked and provides Investors with an opportunity to gain direct exposure to a large-scale solar project with a defined path to revenue and cash flow generation.

The Project Sponsor and debt partners have fully funded the Project’s construction. Construction is substantially complete, with all major equipment and materials either on site or already installed.

Project Opdyke is a fully behind-the-meter (“BTM”) microgrid project that requires no interconnection or transmission approval from the grid operator. Engineering, procurement and construction (“EPC”) activities are proceeding according to plan with no unforeseen delays or issues arising from non-compliance with potential governmental, environmental or regulatory policies.

The Project has a contractually-defined exit that is structured to provide Investors with a total gross return of 14-16%

In Year 6, the Project Sponsor has the option to purchase Investors’ Class A membership interests
In Year 7, if the Year 6 Option is not exercised, the Investors have the right to sell 100% of their Class A membership interests to the Project Sponsor and fully exit their investment

Institutional Backing:

Project Opdyke represents an opportunity to participate in an institutional-quality investment and to directly invest in a large-scale solar and battery microgrid project that would typically only be accessible to institutional investors or through institutional funds.

The Investment Manager – Andelis UPower Management, LLC – is a joint venture between UPower Energy and Andelis Infrastructure Partners.

The Project’s developer, UPower Energy, is a vertically-integrated energy service provider focused on developing, financing, owning, and operating distributed renewable energy projects; UPower has developed and constructed 50 MW of solar and PV projects and continues to own 10 MW of solar PV projects in TX and CA.

Andelis’ Founder and Managing Partner, Scott Lechky, has deployed over $1 billion in capital for renewable energy projects throughout his career, offering significant expertise in project execution and risk management. Through its extensive network of industry relationships, Andelis has been able to successfully source this substantially derisked institutional-quality renewable energy project and in partnership with Plural, offer this opportunity to Accredited Investors and Qualified Purchasers.

The Project is 100% owned by the Project Sponsor (100% owner of Class B membership interests). The Project Sponsor, founded over 25 years ago, has an institutional track record of investing in global energy and energy infrastructure assets where their expertise provides superior market insight and the ability to mitigate or quantify downside risk. The Project Sponsor is privately owned by its founding partners, senior staff, and certain funds managed by a leading investment manager with over $200 billion of assets under management across private equity, real estate and private credit. Since 2015, this leading investment manager has invested over $1 billion alongside the Project Sponsor’s management team.

A leading national bank has committed to providing the project term debt and the Project’s Solar Investment Tax Credit (“ITC”) is under contract be transferred to a reputable tax equity investor. This fully-contracted capital stack is a significant contractual milestone that derisks the project and enables it to commence operations in Q2 2025. As a requirement of the project financing process, the Project has obtained an Independent Engineer (“IE”) report by Partner Engineering and Science, Inc., and financial model audit completed by BDO USA P.C.

Contracted Revenue

The Project benefits from a 20-year Purchase Power Agreement (“PPA”) that includes an indexed power price and revenue contractually linked to operating costs and debt service obligations. This long-term contract provides Investors with stable, predictable revenue and cash flow available for distribution over the term of the investment.

The offtaker (energy purchaser), a biofuel production facility, is contracted to purchase 100% of the Project’s energy, providing long-term financial stability for the project.

The cash flows are secured by a long-term PPA with power prices indexed to the Project’s operating costs and debt service obligations over the life of the investment. The PPA is structured to provide significant downside protection and stable cash flow available for preferred equity investors.

The Project is situated in West Texas and its high-value ERCOT electricity transmission market. The Project’s location, Hockley County, is a region with exceptional solar irradiance (~1,830 kWh/kWp) and +270 days of sunshine per annum. Abundant solar resources and favorable weather conditions (dry climate, predictable weather), maximizes the Project’s solar output and minimizes operational risks associated with excessive downtime or extensive maintenance expenditures.

Sponsor and Management Expertise

The Class A investment will be managed by a joint venture between UPower Energy and Andelis Infrastructure Partners.

Solar and Battery Microgrid | Opdyke Solar