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Related Party Transactions
12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
Our operations included the following related party transactions (in thousands):
 
 
Years Ended
December 31,
 
 
2019
 
2018
 
2017
 
 
 
 
 
 
 
Total revenue from related parties
 
$
228,100

 
$
32,381

 
$
2,176

Interest expense to related parties
 
6,756

 
8,893

 
12,265

Consulting expenses paid to related parties 1 (included in general and administrative expense)
 

 
125

 
206

1As of July 2019, we no longer have a consultant considered to be a related party.

As of December 31, 2019 and 2018, we had $55.8 million and $64.1 million, respectively, in debt and convertible notes from investors considered to be related parties.
Bloom Energy Japan Limited
In May 2013, we entered into a joint venture with Softbank Corp., which is accounted for as an equity method investment. Under this arrangement, we sell Energy Servers and provide maintenance services to the joint venture. For the year ended December 31, 2019 and 2018, we recognized related party total revenue of $4.2 million and $32.4 million, respectively. Accounts receivable from this joint venture was $2.4 million as of December 31, 2019 and $3.3 million as of December 31, 2018.
Diamond State Generation Partners, LLC
On June 14, 2019, we entered into a transaction with SP Diamond State Class B Holdings (SPDS) for the PPA II upgrade of Energy Servers. In connection with the closing of this transaction, SPDS was admitted as a member of Diamond State Generation Partners, LLC ("DSGP"). DSGP, an operating company was a wholly owned subsidiary of DSGH prior to June 14, 2019. As a result of the PPA II upgrade of Energy Servers transaction, we determined that we no longer retain a controlling interest in DSGP and therefore it will no longer be consolidated as a variable interest entity, or VIE, into our consolidated financial statements as of June 30, 2019. DSGP is considered to be a related party as, through our interest in DSGH, we held an interest in DSGP through December 23, 2019. As a result of the PPA II Upgrade, we recognized related party revenue of approximately $223.9 million, comprised of product revenue of approximately $216.9 million and installation revenue of $7.0 million, for the year ended December 31, 2019. See Note 13, Power Purchase Agreement Programs - PPA II Upgrade of Energy Servers. We had no accounts receivable from DSGP as of December 31, 2019.
Consulting Arrangement
In January 2009, we entered into a consulting agreement with General Colin L. Powell, a member of our board of directors, pursuant to which General Powell performs certain strategic planning and advisory services for us. In 2018, General Powell's compensation was revised to $125,000.0 per year, plus reimbursement for reasonable expenses. In July 2019, the consulting agreement was amended to further reduce the compensation payable to General Powell such that he is no longer designated as a related party for reporting purposes.
Debt to Related Parties
The following is a summary of our debt and convertible notes from investors considered to be related parties as of December 31, 2019 (in thousands):
 
 
Unpaid
Principal
Balance
 
Net Carrying Value
 
 
 
Current
 
Long-
Term
 
Total
 
 
 
 
 
 
 
 
 
Recourse debt from related parties:
 
 
 
 
 
 
 
 
6% convertible promissory notes due December 2020 from related parties
 
$
20,801

 
$
20,801

 
$

 
$
20,801

Non-recourse debt from related parties:
 
 
 
 
 
 
 
 
7.5% term loan due September 2028 from related parties
 
38,337

 
3,882

 
31,088

 
34,970

Total debt from related parties
 
$
59,138

 
$
24,683

 
$
31,088

 
$
55,771

The following is a summary of our debt and convertible notes from investors considered to be related parties as of December 31, 2018 (in thousands):
 
 
Unpaid
Principal
Balance
 
Net Carrying Value
 
 
 
Current
 
Long-
Term
 
Total
 
 
 
 
 
 
 
 
 
Recourse debt from related parties:
 
 
 
 
 
 
 
 
6% convertible promissory notes due December 2020 from related parties
 
$
27,734

 
$

 
$
27,734

 
$
27,734

Non-recourse debt from related parties:
 
 
 
 
 
 
 
 
7.5% term loan due September 2028 from related parties
 
40,538

 
2,200

 
34,119

 
36,319

Total debt from related parties
 
$
68,272

 
$
2,200

 
$
61,853

 
$
64,053


In November 2019, one related party note holder exchanged $6.9 million of their 6% Notes at the conversion price of $11.25 per share into 616,302 shares of common stock. We repaid $2.2 million and $1.4 million of the non-recourse 7.5% term loan principal balance in the years December 31, 2019 and 2018, respectively, and we paid $3.0 million and $3.1 million of interest in the years December 31, 2019 and 2018, respectively. See Note 7, Outstanding Loans and Security Agreements for additional information on our debt facilities.