Lightsource bp secures $348 million for utility-scale projects in Texas | Solar Financing Spotlight

Lightsource bp solar financing

Lightsource bp is building two utility-scale solar projects in in Texas, totaling 288 MW. Meanwhile, Arevon and Strata Clean Energy have each secured loans for projects in California and Arizona, respectively. Learn more in this installment of the Solar Financing Spotlight.

Lightsource bp has successfully closed on a $348 million financing package to support the construction and operation of a 288 MWdc portfolio comprised of two utility-scale solar projects in Texas:

  • 163 MW Starr Solar project in Starr County, Texas
  • 125 MW Second Division Solar project in Brazoria County, Texas

Construction of both solar farms is underway, creating a combined 400 jobs during construction, with both projects scheduled to come online in 2024.

“This deal is an important milestone towards building out our growing portfolio of solar and storage projects across the United States, extending our relationship with several top-tier financing counterparties, each of whom have partnered with Lightsource bp on previous transactions,” said Emilie Wangerman, head of USA, chief operating officer (interim), Lightsource bp. “It’s also our first transaction to benefit from the transferability provisions of the Inflation Reduction Act of 2022 to monetize the projects’ investment tax credits.”

Once complete, the Starr and Second Division Solar projects will join Lightsource bp’s operational fleet, bringing additional diversification to the Texas electric grid, especially important during extreme weather conditions.

Lightsource bp currently operates three solar projects in Texas: 260 MW Impact, 163 MW Elm Branch and 153 MW Briar Creek Solar. The projects provide diversified, integrated energy approach for energy security and reliability. Over the past three years, these facilities have provided power during major winter storms, such as Uri in 2021 and Heather in 2024, and summer heatwaves such as in 2023, providing energy during harsh conditions and helping to alleviate electricity price spikes.

Lightsource bp has raised more than $4.6 billion in third-party capital since 2019 to support the commercialization of U.S. renewable energy projects. For this most recent round of financing, Lightsource bp worked with the following institutions: Societe Generale, ING (ING Capital LLC and affiliates), NatWest, Lloyds Banking Group and Allied Irish Banks (AIB).

Arevon secures $1.1 billion for Eland 2 solar + storage project in California

Arevon Energy Inc. has secured more than $1 billion in aggregate financing commitments for its Eland 2 solar + storage project in Kern County, California. The 374 MWdc solar project coupled with 150 MW / 600 MWh of energy storage is under early-stage construction and is anticipated to come online in Q1 2025.

Wells Fargo provided a $431 million tax equity commitment. Arevon obtained $654 million of debt financing including a construction-to-term loan, a tax equity bridge loan, and letter of credit facilities. Canadian Imperial Bank of Commerce (CIBC) served as the Administrative Agent, Coordinating Lead Arranger, Green Loan Coordinator, and Bookrunner. Other Coordinating Lead Arrangers included BNP Paribas, CoBank, Commerzbank AG, Commonwealth Bank of Australia, and National Bank of Canada. J.P. Morgan served as Joint Lead Arranger, Collateral and Depositary Agent. Amis, Patel & Brewer, LLP represented Arevon as Sponsor Counsel; Milbank LLP served as Lender Counsel; and Sheppard Mullin served as Tax Equity Counsel.

“The Eland 2 financing is an amazing accomplishment after Eland 1 which achieved financial close in 2022,” said Daniel Murphy, director of project finance at Arevon. “Both projects are excellent examples of Arevon’s ability to execute on large, complex transactions.” 

Under a long-term power purchase agreement (PPA) with Southern California Public Power Authority, Eland 2 will provide 200 MWac of electricity to serve the power needs of Southern California, using energy storage to provide electricity over an extended period each day. The solar energy generated by this project is enhanced by Tesla’s Megapack 2 XL battery system, which ensure seamless power continuity and reliability particularly during peak-demand periods. San Diego-based SOLV Energy is the project’s engineering, procurement, and construction (EPC) contractor.

Eland 2, combined with the project’s first phase, Eland 1, collectively represent one of the largest power plants in Arevon’s portfolio. When completed, they will be one of the largest operating solar-plus-storage installations in the country with 751 MWdc of solar electricity generation and 300 MW/1,200 MWh of energy storage.

“Solar + storage projects, like our flagship Eland 1 and 2 facilities, play an important role in Arevon’s strategy. Hybrid power plants deliver a more reliable, predictable energy yield during peak electricity demand periods, which in turn enables consistent returns across our diverse, multi-gigawatt portfolio,” said Kevin Smith, CEO at Arevon. “The Eland projects highlight our team’s financial strength, industry expertise, and thoughtful approach to fostering a sustainable energy infrastructure. We will continue to build upon this momentum, as leaders in powering the energy transition.”

Strata Clean Energy secures $559 million for 1 GWh BESS project in Arizona

Strata Clean Energy has closed on a $559 million financing for the construction and ownership of the Scatter Wash battery storage complex. The 255 MW / 1.02 GWh storage facility broke ground on Jan. 18 and is expected to be operational by April 2025.

A consortium of leading financial institutions collaborated to secure the necessary funding for this project. J.P. Morgan and Nomura acted as Coordinating Lead Arrangers and Joint Bookrunners. J.P. Morgan also fulfilled roles as Administrative Agent, Depositary Agent, and Collateral Agent. The financing was further supported by U.S. Bancorp Impact Finance and CoBank as Coordinating Lead Arrangers with The Korea Development Bank and Norddeutsche Landesbank as Joint Lead Arrangers. Furthermore, Siemens and Regions contributed as lenders in this transformative project, and U.S. Bancorp Impact Finance was also the primary tax equity investor.

“The successful financing for the Scatter Wash battery storage complex marks a significant step forward in our mission to drive the transition to clean energy,” said Markus Wilhelm, CEO of Strata. “This opportunity to collaborate with our financing partners to bring this critical project to fruition will create a lasting, sustainable impact on a region that struggles with grid challenges and extreme heat.”

The Scatter Wash battery storage complex will store enough electricity to power 50,000 Arizona homes during peak summer conditions for 20 years, revolutionizing grid stability and streamlining the incorporation of renewable energy sources in Arizona, thereby advancing economic growth and environmental sustainability. In May 2023, Strata forged a 20-year tolling agreement with Arizona Public Service, cementing its commitment to this groundbreaking initiative.

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