Safe-harbor financing advances Heritage-Hudson partnership to finance a scaled distributed generation platform across Texas ERCOT market

Hudson Sustainable Group ("Hudson"), a leading renewable energy and infrastructure investment and advisory firm, successfully closed a $28.5 million senior secured financing for Heritage Energy Holdings ("Heritage"). Hudson acted as exclusive advisor and co-sponsor for the transaction, which provides the capital foundation for Heritage's distributed generation platform expansion across the Texas ERCOT market.

The financing, provided by Eagle Point Credit, supports Heritage’s strategy to develop and operate a network of sub-10 MW battery storage and solar projects across Texas, with plans to scale across dozens of locations already underway. Unlike traditional utility-scale developers, Heritage operates an integrated "Gen-Tailer" platform—combining licensed retail electricity operations through its affiliation with Heritage Power, an independent power provider in the ERCOT market, with distributed generation and VPP capabilities. This architecture allows the platform to aggregate distributed assets to achieve utility-scale impact, bypassing long interconnection queues while delivering reliability to the grid and capturing value from market volatility.

The transaction facilitates the acquisition of safe-harbored battery assets and ensures the seamless transfer of these instrumental assets to the Heritage platform. "We are proud to partner with Heritage to advance this platform," said Neil Z. Auerbach, Chairman and CEO of Hudson. "Heritage represents an innovative approach to distributed generation that addresses critical needs in the Texas energy market. Hudson has worked closely with Heritage to structure a scalable platform that integrates distributed assets with retail energy operations and virtual power plant capabilities. The transaction was led by Hudson partner Dustin Muscato, whose longstanding relationship with Heritage helped bring the collaboration together and guide its execution. This transaction establishes the foundation for platform growth in distributed energy infrastructure and service delivery."

Hudson managed the safe-harbor financing to meet critical year-end deadlines. As co-sponsor of the broader platform expansion, Hudson's engagement extends beyond this initial financing to encompass the strategic development and institutional positioning of the Heritage platform.

"Hudson's partnership was instrumental in achieving this financing milestone," said Tim Sanchez, Chief Executive Officer at Heritage. "Their deep understanding of both energy infrastructure markets and capital markets enabled them to structure and execute a complex transaction under significant time pressure. With the support of Hudson and with this Eagle Point safe harbor kick-off financing, we are positioned to execute on our development pipeline and strengthen the Texas grid by delivering reliable, cleaner power to communities across the state."

The transaction demonstrates the viability of the distributed generation platform model and positions Heritage and Hudson to execute on their shared vision for building an institutional-grade distributed energy platform. ERCOT continues to experience structural load growth and increasing demand for flexible distributed resources, creating sustained tailwinds for Heritage's integrated approach.

Baker Botts LLP and Denmon Sigler Law, P.C. served as legal counsel to Heritage.

About Heritage Energy Holdings

Heritage Energy Holdings is a vertically integrated energy platform in ERCOT with a portfolio of distributed solar and battery storage assets and a power purchase arrangement with Heritage Power, an independent power generation company. Founded by electricity entrepreneurs with over 40 years of combined experience in the Texas deregulated market, Heritage serves residential, commercial, governmental, and industrial customers with customized energy solutions. By controlling both generation and customer load, Heritage optimizes value across the energy spectrum while delivering reliable power and managing market volatility through advanced virtual power plant orchestration.

About Hudson Sustainable Group

Hudson Sustainable Group is a strategic infrastructure investment and advisory firm focused on renewable energy, distributed generation, and sustainable infrastructure platforms. Led by Neil Z. Auerbach, Hudson partners with experienced management teams to build institutional-grade platforms in the clean energy economy. The firm provides strategic advisory services, capital raising, and co-investment solutions for companies developing and operating sustainable infrastructure assets, combining deep sector expertise with sophisticated financial structuring capabilities.

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