Capital for remote, renewable energy projects requires innovative approaches. Since 1958 the State of Alaska and Federal government have supported development of rural energy in Alaska. However, grants for clean energy from state and federal sources are declining. Between 2015 and 2016, total government spending in Alaska decreased from $13.4 billion in fiscal year 2015 to $10.6 billion in 2016 — a $2.8 billion, or 21% decrease. Since 2008, grant funding through the Alaska Energy Authority and the Denali Commission enabled the highest per capita state investment in renewable energy anywhere in the United States. Today, appropriations to these agencies are significantly reduced if not zeroed out. The grant era has ended. So alternative financing options, like loans or energy purchase agreements, are the new mechanism to upgrade or replace generators, add renewables, or pay for energy efficiency.
Remote commercial sites never were grant recipients, but may be reluctant to take on debt for operations outside of core business activities. This is where we can help. 60Hertz connects capital to need.
Generating energy in remote communities around the globe is challenging and costly. In the Arctic, vast distances, seasonal construction restrictions, limited winter daylight, and harsh weather further increase challenges and costs. Renewable microgrids can help in two ways: renewable technologies are drastically cheaper today than even five years ago; and needing less diesel fuel (and the associated reduced logistics for delivery) also bring down energy costs. Historically, state grants electrified Alaska Native and Canadian First Nation communities, but times are changing. Private capital wants to get involved. 60Hertz makes the business case for remote, renewable microgrids using innovating financing solutions.
60Hertz is dedicated to reducing the cost of energy. Our loans and rates will never increase your long term costs. We offer a lease to own mechanism - Customers will hold title to the microgrid assets, and make monthly “mortgage” payments on their microgrid during a term of approximately 12 years. The Lease to Own model addresses the lack of up-front capital while enabling local ownership. With the help of 60Hertz Microgrids, a team strategy for energy independence is available. Securing a loan with 60Hertz can alleviate any remaining debts from unfinished, or prospective projects in rural Alaska. Finally, 60Hertz will only fund projects with a long-term performance guarantee from the engineering and construction firms with whom we partner. Thus, if a wind turbine stops spinning three years into operations, the community is not left responsible to pay for repairs.
Communities can choose to enter into a power purchase agreement or energy purchase agreement and pay for the fixed costs of new assets on a per kilowatt hour basis. Monthly payments are direct deposited into the lender's account. 60Hertz ensures that communities can afford the loan and only set up our community partners for success.
Wilderness lodges, placer mines, canneries and fish processors, man-camp infrastructure, remote telecomm and public facilities across the Arctic, who depend on diesel for electricity and heat, can all be served by 60Hertz. We partner with commercial clients who have a vision for their renewable solution, or those that request help determining the best-fit technologies for their site. 60Hertz's financing rates and terms are competitive. Our value proposition to commercial entities is simplified project development, financing, and interface with engineering, procurement and construction firms. 60Hertz is committed to low cost energy in remote places. Every company can increase its profit margins through energy savings. Under a power purchase agreement your company’s energy demand becomes a fixed, predictable line item in your budget with a levelized cost over the term of the contract.
Remote Commercial Sites
60Hertz is committed to low cost energy in remote places. Every company can increase its profit margins through energy savings. Under a power purchase agreement your company’s energy demand becomes a fixed, predictable line item in your budget with a levelized cost over the term of the contract.