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Try clean energy

Imagine a business that creates long-term value for investors, communities and the planet. Here’s why big financial players are betting on renewable power.
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Contemporary science has reached a consensus. Tackling climate change depends on moving towards clean power sources. But the shift to large-scale renewable energy use has been anything but rapid. Case in point: The U.S. is aiming for a carbon pollution-free power grid by 2035. But, according to a recent report, last year, clean energy installations in the U.S. were less than half of what’s required to meet that target.

Gregory Wetstone, President and CEO of the American Council on Renewable Energy, conceded clean energy development faces formidable challenges. From ailing infrastructure to the upfront expense of building renewable energy assets, the sector is accustomed to serious hurdles. Despite that, Wetstone said, renewable energy development has skyrocketed in recent years, thanks, in large part, to an increased willingness to see it as a smart investment.

The U.S. is aiming
for a carbon
pollution-free power
grid by 2035.

“The nature of renewable power is you have no fuel cost, but you have that higher capital cost that you can amortize over a longer period,” Wetstone said. “And over time, you actually save consumers’ money, because renewable energy is cheaper. But you have to be able to put the capital together to build the infrastructure and get those projects online.”

For that reason, he added, “It’s important to have big financial players step up and participate.”

It's important to have big
financial players step up
and participate.
The U.S is aiming for a carbon pollution-free power grid by 2035

“The nature of renewable power is you have no fuel cost, but you have that higher capital cost that you can amortize over a longer period,” Wetstone said. “And over time, you actually save consumers’ money, because renewable energy is cheaper. But you have to be able to put the capital together to build the infrastructure and get those projects online.”

For that reason, he added, “It’s important to have big financial players step up and participate.”

The need for private sector investment

Blackstone is one of those players. The global investment firm has taken the view that increasing sustainability and decarbonizing makes its assets stronger and more resilient.

With this in mind, Blackstone is leveraging the breadth and expertise of its vast network of portfolio companies to build partnerships that overcome traditional barriers to clean energy development.

Increasing sustainability and
decarbonizing makes assets stronger
and more resilient.
Increasing sustainability and decarbonizing makes assets stronger and more resilient.

“We’re using our skills and the scale of our portfolio to create transformational change,” Jean Rogers, Blackstone’s Global Head of ESG, explained. Rogers added that tackling climate goals generates value for clients by strengthening Blackstone’s portfolio of companies. “We believe that companies focusing on renewable energy are more competitive in a world that’s decarbonizing.”

Two recent Blackstone projects offer tangible examples of how investments in renewable energy can deliver long-term value.

Explore projects

Due to urban density and transmission bottlenecks, New York City has very little access to green electricity in its local grid, which prolongs reliance on existing fossil fuel power plants and delays progress towards the state’s ambitious energy goals. The Champlain Hudson Power Express (CHPE) is a keystone of New York state’s energy transformation: a 339-mile, underground transmission line bringing clean hydro power from Canada to New York City. TDI, a Blackstone portfolio company, has been involved in the project for the past 12 years and is constructing the line in partnership with local labor unions, municipalities and communities.

New Jersey’s low- and moderate-income households face various barriers to accessing solar energy. Blackstone brought together two portfolio companies — real estate warehouse operator, Link Logistics, and solar developer, Altus Power — to participate in a government-supported program that extends access to clean, reliable solar power across the state. By utilizing unused rooftops from Link’s portfolio of logistics facilities, residential customers will be able to source their electricity from local installations and avoid the upfront capital costs.

2.B
The project is estimated to generate $1.4 billion in new tax revenue for 73 municipalities and 59 school districts in New York state over the first 25 years of the project’s life.
2.B
The project is estimated to generate $1.4 billion in new tax revenue for 73 municipalities and 59 school districts in New York state over the first 25 years of the project’s life.
1.A
1,250 megawatts of clean energy — enough to meet the electricity needs of over one million homes — will be delivered directly into NYC, reducing emissions and harmful pollutants and improving the health and lives of residents.
1.A
1,250 megawatts of clean energy — enough to meet the electricity needs of over one million homes — will be delivered directly into NYC, reducing emissions and harmful pollutants and improving the health and lives of residents.
2.D
CHPE has created a $117 million trust to fund improvements and environmental research in waterways through which the line will travel.
2.D
CHPE has created a $117 million trust to fund improvements and environmental research in waterways through which the line will travel.
1.B
CHPE will provide enough clean energy to power 20 percent of New York City’s annual energy needs.
1.B
CHPE will provide enough clean energy to power 20 percent of New York City’s annual energy needs.
2.A
1,400 new union construction jobs and 3,000 secondary jobs are expected to be created during construction, leading to more than $400 million in family-sustaining wages and benefits.
2.A
1,400 new union construction jobs and 3,000 secondary jobs are expected to be created during construction, leading to more than $400 million in family-sustaining wages and benefits.
1.C
The project will reduce carbon emissions by approximately 3.9 million metric tons in its first full year of operation, equivalent to removing approximately 44 percent of passenger cars from New York City streets.
1.C
The project will reduce carbon emissions by approximately 3.9 million metric tons in its first full year of operation, equivalent to removing approximately 44 percent of passenger cars from New York City streets.
2.C
60+ year lifespan of the project will benefit generations of New York residents.
2.C
60+ year lifespan of the project will benefit generations of New York residents.
2.E
CHPE has created a $40 million Green Economy Fund to support clean energy job training for underrepresented communities, women, veterans and those transitioning from the fossil industry.
2.E
CHPE has created a $40 million Green Economy Fund to support clean energy job training for underrepresented communities, women, veterans and those transitioning from the fossil industry.
2.B
The project will contribute to New Jersey’s clean energy goals, which include having 50 percent of energy sold in the state come from renewables by 2030.
2.B
The project will contribute to New Jersey’s clean energy goals, which include having 50 percent of energy sold in the state come from renewables by 2030.
1.A
At least 51 percent of the project’s clean energy will go to historically underserved communities, reducing their utility costs.
1.A
At least 51 percent of the project’s clean energy will go to historically underserved communities, reducing their utility costs.
2.A
35 megawatts of power will be generated by the project, enough to power 6,000 homes for a year.
2.A
35 megawatts of power will be generated by the project, enough to power 6,000 homes for a year.
1.B
Approximately 10,000 residential customers throughout New Jersey will gain access to renewable energy via rooftop community solar projects.
1.B
Approximately 10,000 residential customers throughout New Jersey will gain access to renewable energy via rooftop community solar projects.
Total solar capacity (kW)
based on solar photovoltaic
(PV) installations by county

Least dense

Most dense

> 50,000 - 75,000

> 300,000 - 600,000

Source: NJDEP Bureau of GIS, Jan 19, 2022

Environment

1.A
1.B
1.C
SCAP
1.A
1.B
1,250 megawatts of clean energy — enough to meet the electricity needs of over one million homes — will be delivered directly into NYC, reducing emissions and harmful pollutants and improving the health and lives of residents.

CHPE will provide enough clean energy to power 20 percent of New York City’s annual energy needs.
The project will reduce carbon emissions by approximately 3.9 million metric tons in its first full year of operation, equivalent to removing approximately 44 percent of passenger cars from New York City streets.
B A C
Community
The solar heat map on the left shows the total solar capacity (kW) of New Jersey, based on solar photovoltaic (PV) installations by county.
Community
At least 51 percent of the project’s clean energy will go to historically underserved communities, reducing their utility costs.
Graphic is active in other window
Community
Approximately 10,000 residential customers throughout New Jersey will gain access to renewable energy via rooftop community solar projects.
Graphic is active in other window
2.A
2.B
2.C
2.D
2.E

Community

2.A
2.B
1,400 new union construction jobs and 3,000 secondary jobs are expected to be created during construction, leading to more than $400 million in family-sustaining wages and benefits.
The project is estimated to generate $1.4 billion in new tax revenue for 73 municipalities and 59 school districts in New York state over the first 25 years of the project’s life.
60+ year lifespan of the project will benefit generations of New York residents.
CHPE has created a $117 million trust to fund improvements and environmental research in waterways through which the line will travel.
CHPE has created a $40 million Green Economy Fund to support clean energy job training for underrepresented communities, women, veterans and those transitioning from the fossil industry.
Environment
35 megawatts of power will be generated by the project, enough to power 6,000 homes for a year.
Graphic is active in other window
Environment
The project will contribute to New Jersey’s clean energy goals, which include having 50 percent of energy sold in the state come from renewables by 2030.
Graphic is active in other window
CHPE will provide enough clean energy to power 20 percent of New York City’s annual energy needs.
CHPE will provide enough clean energy to power 20 percent of New York City’s annual energy needs.
1,250 megawatts of clean energy — enough to meet the electricity needs of over one million homes — will be delivered directly into NYC, reducing emissions and harmful pollutants and improving the health and lives of residents.
1,250 megawatts of clean energy — enough to meet the electricity needs of over one million homes — will be delivered directly into NYC, reducing emissions and harmful pollutants and improving the health and lives of residents.
The project will reduce carbon emissions by approximately 3.9 million metric tons in its first full year of operation, equivalent to removing approximately 44 percent of passenger cars from New York City streets.
The project will reduce carbon emissions by approximately 3.9 million metric tons in its first full year of operation, equivalent to removing approximately 44 percent of passenger cars from New York City streets.
1,400 new union construction jobs and 3,000 secondary jobs are expected to be created during construction, leading to more than $400 million in family-sustaining wages and benefits.
1,400 new union construction jobs and 3,000 secondary jobs are expected to be created during construction, leading to more than $400 million in family-sustaining wages and benefits.
The project is estimated to generate $1.4 billion in new tax revenue for 73 municipalities and 59 school districts in New York state over the first 25 years of the project’s life.
The project is estimated to generate $1.4 billion in new tax revenue for 73 municipalities and 59 school districts in New York state over the first 25 years of the project’s life.
60+ year lifespan of the project will benefit generations of New York residents.
60+ year lifespan of the project will benefit generations of New York residents.
CHPE has created a $117 million trust to fund improvements and environmental research in waterways through which the line will travel.
CHPE has created a $117 million trust to fund improvements and environmental research in waterways through which the line will travel.
CHPE has created a $40 million Green Economy Fund to support clean energy job training for underrepresented communities, women, veterans and those transitioning from the fossil industry.
CHPE has created a $40 million Green Economy Fund to support clean energy job training for underrepresented communities, women, veterans and those transitioning from the fossil industry.
Approximately 10,000 residential customers throughout New Jersey will gain access to renewable energy via rooftop community solar projects.
Approximately 10,000 residential customers throughout New Jersey will gain access to renewable energy via rooftop community solar projects.
At least 51 percent of the project’s clean energy will go to historically underserved communities, reducing their utility costs.
At least 51 percent of the project’s clean energy will go to historically underserved communities, reducing their utility costs.
35 megawatts of power will be generated by the project, enough to power 6,000 homes for a year.
35 megawatts of power will be generated by the project, enough to power 6,000 homes for a year.
The project will contribute to New Jersey’s clean energy goals, which include having 50 percent of energy sold in the state come from renewables by 2030.
The project will contribute to New Jersey’s clean energy goals, which include having 50 percent of energy sold in the state come from renewables by 2030.
Renewable energy
can deliver long-term value
for investors.
Renewable energy
can deliver long-term value for investors.

Ultimately, these projects reveal how big financial players can support the shift to green energy by combining innovative ideas, diverse capabilities and much-needed capital.

They also show the potential of thoughtful partnerships. Bringing these vital projects to successful fruition demands more than skills and capital — it requires community buy-in and tangible benefits for all stakeholders.

“Decarbonization projects don’t happen overnight. They take a tremendous amount of planning and foresight and community support,” Rogers said.

Learn more about Blackstone’s work with TDI on the Champlain Hudson Power Express here and the New Jersey Solar project here

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