Investing in Energy
Partnering with developers and operators to deploy patient capital
Building America's Energy Infrastructure in Opportunity Zones
America faces a growing need for electricity infrastructure investment driven by rapidly increasing energy demand. PA Capital invests in infrastructure in Qualified Opportunity Zones, utilizing a compelling framework for deploying long-term capital in underserved communities. This convergence creates exceptional opportunities for investors seeking exposure to energy infrastructure and utilizing the unique advantages of QOZ investing.
Rising Demand
Unprecedented load growth projections
Data centers, manufacturing, electrification
Grid capacity constraints
Premium for fast-to-market solutions
Policy Support
Qualified Opportunity Zone benefits
Federal renewable energy incentives
State-level action to support growth
Infrastructure investment priorities
Market Evolution
Developer capital needs changing
Value in longer-term holding periods
New financing structures emerging
Affordability even more important
Community Focus
Essential to continued growth
Aligned with economic development
Renewable deployment benefits communities
8,700+ Opportunity Zones across the country
Why Energy Infrastructure in Opportunity Zones
Structural Tailwinds
1
Multiple secular trends drive demand for energy infrastructure investment:
Market Dynamics:
• Accelerating electricity demand across the economy
• Urgent need for new generation capacity
• Distributed solar and storage fastest to market
• Traditional financing models under pressure
Investment Context:
• Long-term holds align with infrastructure fundamentals
• Nimble capital enables advantage in fast-moving market
• Tax efficiency stacks with strong project economics
• QOZ structure provides material IRR enhancement
Compelling Risk-Return Profile
2
Energy infrastructure in QOZs offers differentiated risk-adjusted returns:
Return Enhancement:
• QOZ tax benefits boost after-tax returns significantly
• Long-term contracted revenue with quality counterparties
• Proven technologies and operational track records
• Geographic and technology diversification
Risk Mitigation:
• Contracted cash flows reduce market risk
• Shorter construction periods than alternative infrastructure
• Established supply chains and experienced contractors
• Regulatory frameworks supportive of renewables
Authentic Impact
3
Our investments create measurable benefits:
Economic Impact:
• Job creation in underserved communities
• Catalyze local economic development
• Build long-term community partnerships
• Generate local tax revenue
Environmental Impact:
• Displace fossil fuel generation
• Reduce emissions and improve air quality
• Build more local resilience
• Support state renewable goals
What We Look For
We partner with developers building solar and battery storage projects in Qualified Opportunity Zones. While we're flexible on project specifics, the best opportunities share certain characteristics:
Located in Qualified Opportunity Zones
Solar and/or battery storage technologies
Clear path to construction and operation
Compelling project-level economics
Projects:
Proven track record and technical capabilities
Alignment on community engagement
Transparent communication and collaboration
Shared commitment to project success
Developers:
If you're building in Opportunity Zones, we want to hear from you.
What We Look For
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✓ Notice to Proceed or later stag
✓ Interconnection study completed or queue position secured
✓ Major permits in hand or clear path to approval
✓ Site control established
-
✓ Projected unlevered IRR of 12%+ at project level
✓ Strong offtaker creditworthiness or merchant fundamentals
✓ Competitive all-in capital costs
✓ Proven technology with reliable performance history -
✓ Site located in Qualified Opportunity Zone
✓ Favorable state renewable policies ✓ Reasonable interconnection costs
✓ Strong solar or wind resource (as applicable) -
✓ PPA with credit-worthy offtaker (preferred) or
✓ Strong merchant fundamentals with hedging options
✓ Reasonable tenor (15-25 years)
✓ Escalation provisions where possible
How We Create Value
Sourcing & Selection
● Relationship-driven deal flow
● Rigorous screening process
● Proprietary analysis and modeling
● Competitive advantages in evaluation
Transaction Execution
● Comprehensive due diligence
● Favorable terms negotiation
● Efficient closing processes
● QOZ compliance structuring
Development & Construction
● Active project oversight
● Milestone monitoring
● Risk mitigation
● Cost management
Operations & Asset Management
● Performance optimization
● Proactive maintenance oversight
● Contract management
● Strategic value enhancement