Correlate Energy Enters Landmark Partnership for an Estimated $400M Project to Launch Nation’s First Microgrid Utility

Rhea-AI Summary

Correlate Energy Corp. (OTCQB: CIPI) has entered a partnership with Compass Energy Platform and Distributed Energy Capital to develop the nation's first microgrid utility, marking a significant advancement in renewable utility infrastructure. The project, led by Cuyahoga Green Energy, will initially develop four microgrids valued at approximately $400 million, aimed at providing resilient clean energy. The initiative, set in Cuyahoga County, includes a 10-year operational contract with Compass Energy and financial services from Distributed Energy Capital. The project aims to enhance community resilience and could serve as a model for similar initiatives nationwide.

Positive

• Partnership to develop the nation's first microgrid utility.
• Initial development valued at approximately $400 million.
• Enhances grid reliability and resilience against power disruptions.
• Potential for follow-on projects and scalability nationwide.
• Strategic and operational management by Compass Energy Platform.
• Financial and technical development support from Distributed Energy Capital.
• Project backed by a 10-year operational contract.
• Boosts community resilience and promotes sustainable growth.
• Strengthens economic growth and re-industrialization in Cleveland metro region.

Negative

• Project success contingent on multiple partners, increasing complexity and risk.
• Long timeline with key development milestones not expected until 2025.
• Possible financial strain due to the high initial investment of $400 million.
• Dependence on public-private partnerships may pose regulatory and bureaucratic challenges.

BOISE, Idaho, June 11, 2024 (GLOBE NEWSWIRE) -- Correlate Energy Corp. (OTCQB: CIPI) (“Correlate” or the “Company”), in collaboration with Compass Energy Platform and Distributed Energy Capital (DEC), is proud to announce its role in developing the nation's first microgrid utility. This landmark initiative represents a major advancement in adopting renewable utility infrastructure, ensuring reliable and resilient clean energy.

Cuyahoga County formed Cuyahoga Green Energy (CGE), which is spearheading this innovative project, marking the first new county utility in over 75 years. This initially involves developing four microgrids, totaling approximately $400 million, with opportunities for follow-on initiatives. These microgrids will serve as small-scale local electricity systems capable of operating independently from the main grid, ensuring an uninterrupted supply of clean and reliable energy to multiple interconnected customers.

Compass Energy Platform has been selected as the operational and strategic partner responsible for managing the utility's operations, including technical standards, customer billing, and project financing. Under a 10-year contract approved by the Cuyahoga County Council, they will serve as the primary utility operator. Distributed Energy Capital, operated by Correlate, will provide financial and technical development services that support the partnership by structuring near and long-term project financing. Correlate will serve as the co-development partner, collaborating with Compass Energy and Cuyahoga County to ensure the successful execution and scalability of the microgrid projects.

A seemingly small issue can have a massive impact on the grid's resilience. On August 14, 2003, a transmission line fault in Ohio, caused by contact with a tree, triggered one of the largest power outages in North American history, leaving over 50 million people across eight states and Ontario in the dark. Reflecting on the lessons learned, the current project aims to construct a resilient and reliable energy infrastructure to ensure communities like Cuyahoga County are better prepared for future power disruptions. This initiative enhances grid reliability and promotes sustainable growth through advanced technology and strategic partnerships. Leveraging Microgrids to address reliability, funded by Power Purchase Agreements (PPAs) under public-private partnerships, aligns community needs with capital requirements, bringing these critical projects to life.

The Cuyahoga County Microgrid Utility is designed as a model that can be replicated across other U.S. markets, showcasing a scalable approach to addressing climate change through community-level renewable energy solutions. The teams have begun discussions with other municipalities to explore similar microgrid partnership models. Unlike traditional microgrids, CGE’s project will serve multiple interconnected customers, including commercial, industrial, and later, government and community loads. This ensures a strategic and efficient use of shared resources like solar panels and batteries.

The first microgrid projects are expected to reach key development milestones by 2025. The Utility is part of Cuyahoga County’s larger strategic focus on renewable energy and community resilience. This project is poised to support economic growth and re-industrialization in the Cleveland metro region by providing clean and reliable energy. The development of district microgrids will enhance community resilience and foster sustainable growth.

I am thrilled to see the culmination of our team's historical experience in executing a project of this magnitude at the district level," said Todd Michaels. "This initiative addresses a significant problem by providing resilient energy solutions for this county and opens up tremendous opportunities for our company to meet similar needs across North America.”

About Correlate Energy Corp.
Correlate Energy Corp. (OTCQB: CIPI) is strategically positioned to capitalize on America’s unstoppable trend toward decentralized energy generation. The company employs a three-pronged strategy to create stockholder value from this multi-trillion-dollar trend. First, Correlate seeks to finance, develop, and profitably sell localized clean energy solutions and microgrids to industrial, commercial, and residential customers. Secondly, Correlate plans to retain ownership of some of these energy systems, thereby realizing ongoing, reliable cash flow. Third, Correlate seeks to acquire proven renewable energy companies to grow earnings per share for investors exponentially. Correlate’s management and board consist of industry experts who, during their careers, have successfully financed, developed, and installed over two billion dollars of clean energy projects for their clients. To learn more, go to: https://www.correlate.energy/investors.

General inquiries:
Correlate Energy Corp.
www.correlate.energy

(855) 264-4060
info@correlateinc.com

FAQ

What is Correlate Energy's new partnership about?

Correlate Energy has partnered with Compass Energy Platform and Distributed Energy Capital to develop the nation's first microgrid utility, initially valued at $400 million.

What is the estimated value of Correlate Energy's microgrid project?

The initial development of the microgrid project is valued at approximately $400 million.

What companies are involved in Correlate Energy's microgrid project?

Correlate Energy is collaborating with Compass Energy Platform and Distributed Energy Capital for the microgrid project.

When are the first microgrid projects by Correlate Energy expected to reach milestones?

The first microgrid projects are expected to reach key development milestones by 2025.

What is the purpose of Correlate Energy's microgrid utility project?

The project aims to provide resilient and reliable clean energy, enhance community resilience, and promote sustainable growth in Cuyahoga County.

How will Correlate Energy's microgrid utility project be managed?

Compass Energy Platform will manage the utility's operations under a 10-year contract, with financial and technical support from Distributed Energy Capital.

Where is Correlate Energy's microgrid utility project being developed?

The microgrid utility project is being developed in Cuyahoga County.

What are the potential benefits of Correlate Energy's microgrid project?

The project is expected to enhance grid reliability, support economic growth, and serve as a scalable model for renewable energy solutions nationwide.