It’s Hard to Fund Midsize Green Assets. This Tokenization Startup Wants to Change That

The U.S. renewable energy industry is in an odd position.

Large-scale projects, like SunZia, the southwestern wind turbine project that is expected to provide enough electricity to power three million homes, are funded with relative ease thanks to long-established relationships with financial giants. Meanwhile, small-scale installations such as solar panels on one’s rooftop are becoming cheaper to implement by the day.

But the consolidation of the energy sector is making it increasingly difficult for mid-sized projects to get the financing they need. These ventures, which are typically worth less than $100 million, are too pricey for regular people to pay for, yet too modest for financial heavyweights to take an interest in them.

That’s where Plural Energy steps in. The two-year-old tokenization firm enables mid-sized renewable energy projects to raise funds from investors on-chain, with the double-aim of dramatically expanding the number of people who can invest in renewable energy assets while also developing new kinds of financial products for the energy sector.

“Right now, the process of raising capital for solar is just unacceptable. We’re never going to hit our climate goals,” Adam Silver, co-founder and CEO of Plural Energy, told CoinDesk in an interview. “[We want] to make an easy button for capital raising for good climate assets.”

“By taking advantage of tokenization, we can essentially unlock all of the magic that happens in DeFi ecosystems, and bring it to an industry that’s desperately in need of financial innovation,” Silver added.

Pitching to Plural Energy

Investors can access four types of products through Plural Energy. The first is small-scale asset-backed instruments, like a project bundling 1,000 rooftop solar installations into a single security, which is then tokenized. The second category is development-stage renewables, and the third is operating renewables (for example pre-existing solar plants that seek to raise additional funds to expand).

The fourth category, Silver said, is the “weird stuff,” like a battery that uses artificial intelligence (AI) to trade, or the bitcoin (BTC) mine being built by Sangha Renewables on a West Texas solar plant operated by an energy company. “T

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Author: Tom Carreras

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