Anbaric and Ontario Teachers’ Pension Plan launch JV to build $2 billion of grid infrastructure

Written By: Stratton Report
March 9, 2017

On March 9, Anbaric, a developer of transmission and microgrid projects, and the Ontario Teachers’ Pension Plan jointly announced a new development company, Anbaric Development Partners.

According to the organizations, the partnership will develop energy infrastructure projects in North America under the lead of the existing Anbaric management team, through which Ontario Teachers’ will fund development costs for $2 billion in fully constructed assets.

Edward N. Krapels, Founder and CEO of Anbaric observed: “Today’s announcement is a critical step forward in linking an institutional investor with an energy infrastructure company at a key inflection point for the electric power grid. Ontario Teachers’ investment in Anbaric creates an attractive launching pad for generating innovative energy jobs and boosting local economies while replacing our deteriorating and outdated fossil fuel-oriented grid with new and sustainable energy alternatives. This includes sophisticated high-voltage direct current (HVDC) transmission technology and microgrid projects that will bring renewables online with greater efficiency.”

Andrew Claerhout, Senior Managing Director for Infrastructure and Natural Resources at Ontario Teachers’, noted:

We are seeing so much innovation right now in the clean energy sector. This investment fits our goal of finding new ways to diversify through opportunities that have significant, long-term revenue stream potential. With our thoughtful and reputable partners at Anbaric, we will strategically invest earlier in the asset lifecycle seeking attractive returns for our members with the added benefit of participating in projects that support the transition to a low carbon economy.

Anbaric noted that this partnership marks the largest financial commitment by an investor in the company’s 15-year history.

Anbaric CFO Timothy L. Vaill remarked: “We are excited to have formed a partnership with world-class pension plan Ontario Teachers’ that is experienced in making direct infrastructure investments. OTPP has achieved strong long-term returns by making these direct investments which we hope to emulate going forward.”