Intersect Power has closed $2.4bn of new financing commitments and $675m of previously announced commitments to support the development of a 2.2GW solar plus storage portfolio.
The transaction includes construction financing, tax equity, operational letters of credit and a part of previously announced portfolio level term debt with partners.
The portfolio includes four solar energy projects with a total capacity of around 1.5GWdc and a 1.0GWh Battery Energy Storage System (BESS) project.
The four solar projects include Lumina I, Lumina II, Oberon I and Oberon II, and are expected to be operational in 2023.
The Lumina I and II projects are located in Texas, with a total capacity of around 840MWp, and the Oberon I and II projects, in California, total around 685MWp plus 1,000MWh BESS.
The projects are part of the company’s late-stage portfolio totalling 2.2GW of late-stage solar projects with 1.4GWh of storage.
Intersect Power CEO Sheldon Kimber said: “These closings culminate a multi-year process raising more than $6bn to build out one of the largest solar + storage portfolios our country has seen to date which serves as a platform for future growth into green hydrogen and other decarbonisation technologies.
“The strength of our partnerships and collective teams’ determination further validates our path to decarbonize the hard-to-reach corners of the economy.”
The current project financings, which follow the company’s $2.6bn financing announcement in November last year, will support both construction and operation of the portfolio.
Japan’s Mitsubishi UFJ Financial (MUFG) and Spanish lender Santander served as co-lead arrangers on the $1.6bn construction financing.
German commercial banking company NORD/LB, KeyBanc Capital Markets, Helaba, CoBank, Bank of America, and Zions Bancorporation served as joint lead arrangers.
In addition, US-based national cooperative bank CoBank ACB offered operational letters of credit to the Oberon I & II and the Lumina II projects.
In relation to the financing, the company has secured around $775m of commitments from tax equity investors Morgan Stanley Renewables.
The company has been allocated $675m of previously announced term-loan commitments from HPS Investment Partners and co-investors.
MUFG project finance managing director Louise Pesce said: “Intersect Power has robust capabilities as a developer of transformative renewable energy projects.
“We are honoured to be a financing partner for this phase of their large solar plus storage portfolio which will catalyse the transition to a more sustainable energy infrastructure.”
