Goldman Sachs unit invests $440m into ambitious US solar developer BrightNight

A unit of banking giant Goldman Sachs will invest $440m into ambitious Florida-based grid-scale solar and storage developer BrightNight, a sign that Wall Street sees the US energy transition continuing to generate healthy profits regardless of November election results.

BrightNight, based in West Palm Beach, Florida, said the investment, together with existing capital commitments, is “expected to fully fund its five-year business plan and advance execution of its 31GW renewable power project portfolio.”

The transaction involving the infrastructure business of Goldman Sachs Alternatives is expected to close in September.

Cedric Lucas, the unit’s managing director, said the investment demonstrates the strength of BrighNight’s platform and the differentiated solar and storage project portfolio that its executive team has developed.

“We share a joint ambition to build a leading renewable independent power producer and through this relationship, we look to accelerate its growth by providing long-term capital backing and leveraging our firm’s capabilities and relationships in the sector,” he added.

BrightNight has a contracted 300MW solar project under construction in Arizona due online second quarter 2025. Among the large solar arrays in development include three in Kentucky, a major coal producing state: Starfire, 810MW; Gage, 240MW, and Ragland, 125MW.

Solar hybrid projects include 500MW Hop Hill in Washington State with 500MW storage capacity, while Greenwater there is standalone storage with 200MW capacity.

"We have quickly established a large and differentiated portfolio in high-demand growth markets seeking decarbonising renewable energy solutions to meet growing load and reliability needs," said BrightNight CEO Martin Hermann.

BrightNight is also marketing a proprietary renewable energy integration software platform based on artificial intelligence called PowerAlpha.

This can be used to design hybrid renewable power projects to “build a portfolio solution for lower cost and maximum return,” according to the company.

It can also optimise generation and storage assets for each customer’s unique needs, and to operate hybrid renewable assets to mimimise downtime risks and making dispatch decisions for firm power.

The most recent polls show former president Donald Trump’s lead has narrowed since earlier this month when President Joe Biden abandoned his quest for a second term. Vice President Kamala Harris is now the Democratic Party’s presumptive presidential candidate.

Should she win on 5 November, Harris is expected to broadly continue Biden’s climate policies and keep the country on track toward his administration’s emissions reduction and renewable energy adoption targets.

Trump, in turn, has signaled he would slow offshore wind development and end federal support for electric vehicles. He has said little about solar beyond wanting to end federal tax credits that make it more cost competitive with fossil fuels.

Investors believe that even with a Trump victory, the energy transition will continue at a healthy enough clip as it did during his first term, providing plenty of opportunities to make money.