Utility-scale renewables developer Intersect Energy has secured US$3.1 billion in challenge financing to finish its 2.2GW near-term clear vitality portfolio within the US.
The transactions cowl building financing, tax fairness, operational letters of credit score and portfolio stage time period debt with an combination of US$2.4 billion for brand new financing commitments and the allocation of US$675 million for the development and operation of 4 photo voltaic initiatives with a capability of 1.5GW of photo voltaic PV and a 1GWh battery vitality storage system (BESS).
All 4 initiatives are anticipated to be operational in 2023, with two – Lumina I and Lumina II with 840MWp capability – positioned in Texas, whereas the opposite two solar-plus-storage initiatives – Oberon I and Oberon II with 685MWp photo voltaic PV and 1GWh of BESS – within the Californian desert. Oberon I acquired building approval from the US Bureau of Land Administration (BLM) earlier this 12 months.
These initiatives are a part of Intersect’s 2.2GW near-term PV portfolio and 1.4GWh storage pipeline for which the corporate had already secured US$2.6 billion of financing final 12 months.
Furthermore, in June 2022 the renewables developer closed one other funding of US$750 million to extend its renewables, vitality storage and inexperienced hydrogen portfolio past 8GW.
“These closings culminate a multi-year course of elevating greater than US$6 billion to construct out one of many largest solar-plus-storage portfolios our nation has seen thus far which serves as a platform for future progress into inexperienced hydrogen and different decarbonisation applied sciences,” mentioned Sheldon Kimber, CEO of Intersect Energy.
The development financing, with roughly US$1.6 billion, was co-lead by MUFG and Santander and included NORD/LB, KeyBanc Capital Markets, Helaba, CoBank, Financial institution of America and Zions Bancorporation as joint lead arrangers, whereas CoBank ACB supplied operational letters of credit score to the Oberon I and II and the Lumina II initiatives.
Concurrent with the closing of the development financing, Intersect secured roughly US$775 million of commitments from tax fairness traders, together with Morgan Stanley Renewables for Oberon II, a Fortune 100 know-how firm for Lumina I, and US Financial institution for Oberon I and Lumina II. Whereas the US$675 million funding for the 4 photo voltaic initiatives was supplied by HPS Funding Companions and Co-Buyers.
Moreover, the developer landed an settlement provide with First Photo voltaic in August for two.4GW of its skinny movie PV modules that are scheduled to be delivered from 2024 to 2026.