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					</table><a href="https://www.innergex.com/" target="_blank" rel="noopener">Innergex Renewable Energy</a>, an independent renewable power producer and project developer, has closed a $534 million construction financing package, marking a significant move in developing the Boswell Springs Wind Project in the U.S.
The financing includes a $203 million ten-year non-recourse term loan with <a href="https://group.bnpparibas/en/" target="_blank" rel="noopener">BNP Paribas</a>, <a href="https://www.ca-cib.com/" target="_blank" rel="noopener">Credit-Agricole CIB</a>, <a href="https://www.edc.ca/" target="_blank" rel="noopener">Export Development Canada</a>, and <a href="https://www.bk.mufg.jp/global/" target="_blank" rel="noopener">MUFG Bank</a>, acting as Joint Lead Arrangers.
The funds will be utilized for the construction and operation of the 329.8 MW wind project situated in Wyoming, United States.
&#8220;We are very pleased with the terms of this financing as it demonstrates the strong market confidence in Innergex&#8217;s technical and financial abilities to develop high-quality and well-structured assets that generate attractive cash flows,&#8221; said Michel Letellier, President and Chief Executive Officer of Innergex.
The total construction costs for the Boswell Springs Wind Project are estimated to be $576 million.
A portion of the first drawdown under the Boswell Springs construction loan will refund equity contributed by Innergex, thereby reducing the need for additional funding.
The company has already funded $103 million through its revolving credit facilities, and the process of securing a tax equity commitment is well underway, expected to conclude during Q3 2023.
Upon completion, the Boswell Springs Wind Project is expected to generate approximately $22 million in annual operating cash flows.
The electricity produced by the project will be sold under a long-term, 30-year, 320 MW busbar power purchase agreement, which has been signed with <a href="https://www.pacificorp.com/" target="_blank" rel="noopener">PacifiCorp</a>, a subsidiary of <a href="https://www.berkshirehathaway.com/" target="_blank" rel="noopener">Berkshire Hathaway</a>.
Commercial operation is scheduled to commence in Q4 2024.
The Boswell Springs Wind Project holds the potential to receive up to 120% of Production Tax Credits (PTC) under the Inflation Reduction Act. This includes a 10% energy community PTC Bonus and a 10% domestic content PTC Bonus.
Innergex has secured the procurement of wind turbine generators from <a href="https://www.gevernova.com/" target="_blank" rel="noopener">GE Vernova</a>&#8216;s onshore wind business, and the permitting process has been completed. It has also executed Engineering, Procurement, and Construction contracts with <a href="https://www.mortenson.com/" target="_blank" rel="noopener">Mortenson</a> for the balance of the plant.
Recently the company <a href="https://www.mercomindia.com/project-finance-brief-sol-systems-acquires-solar-project-texas" target="_blank" rel="noopener">acquired</a> 60 MW Sault Ste. Marie Solar portfolio in Ontario from Fengate Asset Management for a purchase price of $50.2 million, along with the assumption of $169.5 million in existing debt.
Last August, Innergex <a href="https://www.mercomindia.com/project-finance-brief-enfinity-global-solar-projects-japan" target="_blank" rel="noopener">announced</a> the completion of an $803 million refinancing of the non-recourse debt of its portfolio of wholly owned assets in Chile, with the issuance of $710 million green bonds maturing in 2036.

Innergex Secures $534 Million Construction Financing for 329.8 MW Wind Project

Macquarie&#8217;s Green Investment Group (<a href="https://www.greeninvestmentgroup.com/" target="_blank" rel="noopener noreferrer">GIG</a>) has launched Cero Generation, a specialist solar energy company working across Europe to support a net-zero future transition.
Consolidating GIG&#8217;s existing and future European solar activities, Cero has one of the largest solar development portfolios in the region, with an 8 GW portfolio comprising over 150 projects in the U.K., Italy, Spain, Poland, France, and the Netherlands.
Working across the project lifecycle, from development through construction and into operations, Cero specializes in the delivery of utility-scale projects, on-site generation, and integrated storage.
Through its on-site, behind the meter projects, Cero develops, finances, builds, owns, and operates assets for commercial and industrial customers and helps reduce energy bills while enhancing its reputation and achieve decarbonization goals.
In North America and the Asia-Pacific region, GIG&#8217;s solar development activities are delivered through Savion LLC and Blueleaf Energy. Together with Cero, these platforms progress a global pipeline of over 20 GW of solar energy projects.
&#8220;The launch of Cero Generation marks an important milestone in GIG&#8217;s ambition to create Europe&#8217;s leading solar development company. An agile, flexible, development-focused business, backed by the global expertise, resources, and reach of GIG, Cero is the perfect vehicle to propel us forward to the next stage of that journey,&#8221; said Edward Northam, head of GIG, U.K., and Europe.
&#8220;In just two years, GIG created one of Europe&#8217;s largest solar development portfolios and assembled a world-class team of experts. Our ambition is to continue on this phenomenal growth trajectory, transforming Cero into Europe&#8217;s leading solar energy company, and helping deliver the continent&#8217;s net-zero ambition,&#8221; Nikolaj Harbo, CEO, Cero Generation, said.
In September last year, Total, a France-based oil and gas company <a href="https://mercomindia.com/total-macquarie-develop-over-2-gw-floating-wind-projects/" target="_blank" rel="noopener noreferrer">announced</a> that it had joined hands with Macquarie&#8217;s Green Investment Group to develop over 2 GW of floating offshore wind projects in South Korea. The two companies entered into a 50:50 partnership to develop five floating offshore wind projects on the country&#8217;s eastern and southern coasts.
In 2018, GIG <a href="https://mercomindia.com/gic-acquires-conergy-solar-asia-middle-east/" target="_blank" rel="noopener noreferrer">acquired</a> a solar development portfolio from Conergy Asia and the Middle East. The portfolio included solar development assets in the Asia Pacific region, commercial, technical, energy storage capabilities, and an asset monitoring center.

Macquarie’s Green Investment Group Launches Solar Energy Company With an 8 GW Portfolio

<a href="https://www.fortum.com/en/pages/default.aspx" target="_blank" rel="noopener">Fortum</a>, a Finnish energy company, has signed an agreement to sell a 54 percent stake in its solar power company in India to UK Climate Investments and Elite Alfred Berg. UK Climate Investments will buy 40 percent while Elite Alfred Berg will acquire 14 percent.
Elite Alfred Berg has the option to buy up to an additional 16 percent from Fortum. The total capacity of this portfolio is 185 MW. In this transaction, Fortum will retain a significant minority ownership position in the solar power company and continue to provide operation and maintenance services based on a long-term agreement.
The total consideration from the divestment of the 54 percent stake on a debt and cash free basis, including the effect of deconsolidating Fortum&#8217;s minority part of the net debt, is expected to be approximately €150 million (~$185 million). The positive impact on Fortum&#8217;s results from selling part of its solar portfolio will be approximately €20 million (~$23 million) and will be booked in the M&amp;A and Solar and Wind Development unit. The transaction is subject to regulatory approvals in the EU and is expected to close in the beginning of the third quarter 2018.
According to Mercom&#8217;s <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener">India Solar Project Tracker</a>, Fortum India&#8217;s operational solar projects include:
<ul>
<li>A 5 MW solar project in Rajasthan under the National Solar Mission (NSM) Phase-I, Batch 1, for which a 25-year power purchase agreement (PPA) has been signed with NTPC Vidyut Vyapar Nigam Limited (NVVN) at a tariff of ₹12.75 (~$0.195)/kWh.</li>
</ul>
<ul>
<li>A 10 MW solar project in Madhya Pradesh under NSM Phase-II, Batch 1, for which a PPA was signed with Solar Energy Corporation of India (SECI) at a fixed tariff of ₹5.45 (~$0.083)/kWh along with viability gap funding (VGF) for a 25-year period.</li>
</ul>
<ul>
<li>Another 70 MW solar project in Rajasthan under NSM Phase-II, Batch 2, was <a href="https://mercomindia.com/fortum-commissions-70-mw-bhadla-solar-park-project-previous-record-low-bid-rs-4-34kwh/" target="_blank" rel="noopener">commissioned</a> with a PPA signed by NTPC at a tariff of ₹4.34 (~$0.066)/kWh for a 25-year period.</li>
</ul>
<ul>
<li>The 100 MW solar project in Pavagada Solar Park under NSM Phase-II, Batch 2. PPAs for this project were signed in June 2016 at a tariff of ₹4.79 (~$0.073)/kWh for a 25-year period.</li>
</ul>
In a stock exchange release dated April 12, 2016, Fortum said that it was seeking to allocate funds ranging from €200 (~$235.676 million) million to €400 million (~$471.352 million) from its planned growth capital for Indian solar projects.
In October 2017, Mercom <a href="https://mercomindia.com/fortum-part-indian-solar-assets-sale/" target="_blank" rel="noopener">reported</a> that Fortum appointed Barclays to serve as its banking partner and facilitate the sale of a stake in its operational Indian solar assets.
Image credit: MMEPL

Fortum to Sell 54 Percent Share of its Indian Solar Portfolio

Investment fund Global Infrastructure Partners (<a href="http://global-infra.com/" target="_blank" rel="noopener">GIP</a>) has closed on a deal to acquire a 100 percent stake in renewable energy project developer <a href="http://equisenergy.com/" target="_blank" rel="noopener">Equis Energy</a>. The total transaction value of $5 billion includes the assumption of $1.3 billion in Equis Energy debt and ranks as the largest renewable energy generation acquisition in history according to the company.
The closing of the deal, which was first announced in October 2017, positions GIP as a dominant global renewable energy project developer.
Equis Energy Chairman David Russell commented on the sale saying, “The investment by GIP and its partners is exciting news for the development of renewable energy in the Asia‐Pacific. GIP has a strong track-record of managing and growing utility‐scale infrastructure businesses and the combination of experience and knowledge across GIP and the existing management team will allow Equis Energy to continue expanding competitively across its target markets.”
Adebayo Ogunlesi, the chairman of Global Infrastructure Partners, said, “We are excited by the new investment in Equis Energy, which is a strong fit with GIP’s global renewable investment strategy. Equis Energy has become one of the leading renewable energy platforms in the region, with a best‐in‐class business model, a high‐ quality asset portfolio and an outstanding management team. We look forward to continuing the Equis Energy success story in the years to come and to supporting new growth opportunities in one of the most promising renewable energy markets in the world.”
With the acquisition, GIP has now become the owner of more than 180 assets comprising 11,135 MW in operation, construction, and development across Australia, Japan, India, Indonesia, the Philippines, and Thailand. The project portfolio includes, 2,402 MW of operational solar projects, with an additional 4,254 MW under development, 2,252 MW of wind generation capacity, with 1,977 MW under development and 250 MW of hydro generating capacity.
One of those projects is the planned 1 GW Wandoan South Solar Project in Queensland, Australia that Mercom reported on in <a href="https://mercomindia.com/equis-energy-develop-1-gw-solar-project-queensland-australia/" target="_blank" rel="noopener">August</a> 2017.
According to Mercom’s <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener">India Solar Project Tracker</a>, Equis Energy already held a 200 MW solar project portfolio in India before the deal closed. The portfolio included a 100 MW project is in Telangana and another 100 MW project in Karnataka that is expected to be commissioned by the end of this month.
Image credit: Equis Energy

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