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Wind power startup Everpower Renewables Corp. is flying high after receiving $55 million in funding from renewable energy investment firm Good Energies Inc. The New York-based company is developing seven utility-grade wind projects in four states including three in Oregon, two in New York and one each in Ohio and Pennsylvania. According to Everpower managing director Kevin Sheen, the projects in New York and Pennsylvania are in the final stages of permitting, which should allow the company to begin building in 2008. "We're using the money to fund development on the project sites we have right now," he said. "We hope to have the two permits and potentially construction in 2008, but our project pipeline really kicks off in 2009 and extends well beyond that." The company says that the plants in development--when completed--will yield more than 1,500 megawatts of power. One megawatt of wind power produces enough electricity on average to serve 250 to 300 homes. This funding is the first private capital that Everpower, founded in 2002, has raised. Prior to this, Everpower was awarded a $3 million grant by the Ohio Department of Energy for a large project the company is developing in central Ohio; and has a "strategic partnership-joint venture arrangement with Con Edison," Sheen said, referring to Consolidated Edison Inc. While he would not release a company valuation for the round, Sheen did say management has maintained a majority position in Everpower; and left open the possibility that the company will raise additional money. As concerns about global warming and pollution increase, investment firms have been rushing into cleantech companies, which often require large up-front investments to cover the cost of building plants. Recent deals include a $100 million Series C venture financing for GreatPoint Energy Inc., and a $40 million first-round for solar thermal power startup Ausra Inc. But like all developing industries, cleantech is having its own growing pains; for the wind industry it's supply chain shortages and policy uncertainty, according to the industry's trade association, the American Wind Energy Association. The AWEA reports that turbine availability is a limiting factor for wind power developers; and although there is demand for more wind energy, companies can't build more projects because there aren't enough new wind turbines to buy. The association pins the lack of manufacturing facilities for turbines and turbine parts in the country on the U.S. government's intermittent policy toward renewables which has discouraged companies from investing in manufacturing facilities. A portion of the proceeds from Everpower's current round will go toward buying turbines for its Pennsylvania and New York projects. New York-based Good Energies is the manager of the renewable energies portfolio of the Cofra Group, a privately owned group of companies. The firm backs companies in ranging from early stage to mature in the interrelated business areas of solar energy, wind energy, load management and green buildings. Other wind power companies in Good Energies' portfolio include Eolectric Inc., Mag-Wind Company LLC, 3Tier Environmental Forecast Group and Second Wind Inc . Hunton & Williams LLP was counsel to the company in the financing.  Deal Video
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