From: Mercom Capital Group
Here are some of the important project finance deals from the global renewable energy industry over the past week:
Saudi Arabia’s ACWA Power, a developer, owner, and operator of power generation projects, achieved financial closure for its 900 MW solar PV project. Shuaa Energy 3 PSC is the fifth phase of the Mohammed bin Rashid Al Maktoum solar project in Dubai. Shuaa Energy 3 PSC is the particular purpose vehicle incorporated for the project, with 60% ownership by the Dubai Electricity & Water Authority (DEWA) and the balance split between ACWA Power and Gulf Investment Corporation (GIC). The project involves the construction of a state-of-the-art 900 MW solar PV project, using bi-facial panels with tracking technology at a capital cost of $564 million. Auctioned in October 2019, the project recorded one of the lowest solar tariffs in the world of $0.017/kWh.
Lightsource bp, a solar project developer, closed a $20 million financing package for its 13 MW (AC) Wildflower Solar project located in Rio Linda, Sacramento, California. The electricity generated by the project will be purchased by the Sacramento Municipal Utility District (SMUD) through a long-term power contract. Lightsource bp secured tax equity financing for the project from Guardian Life Insurance Company of America, via its partnership with the Rockwood Group. National Westminster Bank (NatWest), a retail and commercial bank and project financing lender in Europe and a long-standing partner of Lightsource bp, is the senior project finance debt lender. The balance of the equity requirements will be invested by Lightsource bp. Lightsource bp engaged CohnReznick as the financial advisor on the transaction.
Mainstream Renewable Power has completed financial closure for the second phase of its wholly-owned and fully-contracted 1.3 GW of Andes Renovables wind and solar generation platform in Chile. The company received $620 million in debt funding from a consortium of five banks, including IDB Invest, KfW IPEX-bank, DNB, Caixa Bank, and MUFG Bank. The new debt funding will be used to build the 630 MW second phase of Andes Renovables, which is comprised of two solar photovoltaic generations and three onshore wind assets. The second phase of the 630 MW project will reach its commercial operation between 2021 and 2022. The company has raised around $1.25 billion for its Andes Renovables platform to date.
German-based ib vogt and EIG Global Energy Partners (EIG), an institutional investor in the global energy and infrastructure sector, closed a €135 million (~$159.7 million) commitment. The funds are managed by EIG to primarily fund ib vogt’s project development pipeline. This investment will support the realization of ib vogt’s global pipeline of solar projects in the coming years.
The European Bank for Reconstruction and Development is supporting the construction of a 200 MW Kom Ombo solar PV project in Upper Egypt. ACWA Power, the developer of the clean energy project, has secured a $54 million loan from the European financial institution, which says the funding will be provided in the form of senior debt of up to $40 million, co-financed with other banks, and a bridge loan of up to $14 million. The total investment for the construction of the project is $155.4 million. The Kom Ombo solar project is also supported by the French Development Agency (AFD) and the Japan International Cooperation Agency (Jica).
Kruger Energy, a business unit of Kruger, specializing in the development and management of renewable energy projects, sold a 523 MW mid-stage solar development portfolio to Ecoplexus, a renewables IPP. As a part of the sale, Ecoplexus will continue developing the five-project portfolio, with targeted commercial operation dates in 2022 and 2023.
Connor, Clark & Lunn Infrastructure (CC&L Infrastructure) has entered into an agreement to acquire a U.S. renewable power portfolio from EDP Renováveis (EDPR), increasing the capacity of the firm’s clean energy portfolio to more than a gigawatt. CC&L Infrastructure, together with its partner Régime de Rentes du Mouvement Desjardins and Desjardins Financial Security Life Assurance Company (together, Desjardins Group), will acquire a majority equity interest in the portfolio of five renewable projects located across the U.S. representing more than 560 MW of total capacity. EDPR will retain a minority equity interest and continue to operate and manage the portfolio. CIBC Capital Markets acted as exclusive financial advisor to CC&L Infrastructure on the transaction, which is subject to regulatory approval and expected to be completed before year-end.
Romanian power supplier and distributor Electrica has closed the acquisition of a 7.5 MW Stanesti solar PV project in Giurgiu county through its subsidiary Electrica Furnizare. Electrica Furnizare acquired all shares in Long Bridge Milenium, the company which owns the project, from Cyprus-based company Raylexo Limited and local company Long Bridge Management si Administrare for €1.62 million (~$1.94 million), Electrica said in a filing with the Bucharest Stock Exchange.
Nationwide and Sol Systems announced their joint venture, Helios Infrastructure, completed the purchase of four operating Texas solar projects totaling 47 MW from Cypress Creek Renewables. The Texas portfolio is comprised of four projects with sizes ranging from 7 MW to 14 MW, located across Webb, Menard, Brooks, and McClennan counties. Three of the projects have a power purchase agreement with NRG Power Marketing, and one project has a power purchase agreement with the Lower Colorado River Authority. The projects were placed into service in 2019. Cypress Creek O&M Services will provide O&M services for the projects.
Arenko Group, a battery software services provider, sold development rights for two 50 MW projects to Gresham House Devco (Gresham House). Arenko has also signed services agreements for the optimization of these projects. Gresham House has acquired these projects to add to Gresham House Energy Storage Fund’s pipeline.
Sonnedix Japan, on behalf of the Sonnedix Group, completed the acquisition of a 2.3 MW solar PV project in the Mie prefecture, center of Japan. The project has a PPA with Chubu Electric Power under the feed-in-tariff program. The project began operations in July 2016. With this new acquisition, Sonnedix Japan manages 135.4 MW of operational capacity in the country, besides over 380 MW currently in construction and/or development.
For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.
Read last week’s funding roundup.