A solar + storage project in California from independent energy provider Terra-Gen, has completed financing for its first phase of construction. The company announced this Monday it secured the funds from J.P Morgan.
Firstly, the solar + storage project is called Edwards Sanborn Solar Storage; it locates in Kern County, California. It will produce and store clean electricity; and will have a capacity that is equivalent to power more than 158,000 homes each year.
Secondly, the project will have a capacity of 346 megawatts, alternating current (MWac), from its solar modules; and 1,501 megawatt hours (MWh) of battery storage; it will help displace around 307,000 tons of CO2 annually.
Thirdly, the financing of the project includes $804 million of senior credit facilities; comprising a $400 million construction and term loan facility; a $328 million tax equity bridge facility, and also, a $76 million construction and revolving letter of credit facility.
Moreover, as said above, J.P. Morgan provided the tax equity commitment for the initial phase of the project, with Deutsche Bank leading the construction and term financing. About the project’s relevance. Jim Pagano, Terra-Gen’s CEO, said. “This truly transformative project ensures electricity reliability; through the use of stand-alone and collocated energy storage.”
Also recommended for you: TC Energy to develop natural gas pipeline in southeast Mexico. Click here to read.
Edwards Samson Solar + Storage to be the largest integrated project in the world
He also remarked. “This financing allows us to complete the ongoing construction of the first phase of the Edwards Sanborn Solar Storage facility; and also helps California meet its carbon reduction goals through the deployment of large-scale renewable energy.”
In addition, John O’Connor, Terra-Gen’s CFO, said. “We value the creativity and innovation that our financing counterparties brought to the table. Working collaboratively, we were also able to structure and deliver financing on a scale not previously seen for an integrated solar and energy storage project.”
On the other hand, the first phase of the solar + storage project will deliver 735MWh of battery storage; which will come online around the 3Q of 2021; while the project will be fully operational by the 2Q of 2022.
Finally, subsequent near-term phases of the project will have financing later this year; and come on-line in the second half of 2022 and early 2023. When complete, the Edwards Sanborn Solar + Storage franchise will comprise 760 MWac of solar; and also 2,445 MWh of energy storage. The company expects the project to be the world’s largest integrated solar powered battery storage project.
