Intersect clinches funds for 1.5 GW of solar, 1 GWh storage in Texas, California
First Solar-powered PV park in California. Author: U.S. Department of the Interior.
US clean energy developer Intersect Power LLC today announced the completion of about USD 3.1 billion (EUR 3.2bn) in financing to fund the construction and operation of about 1.5 GW direct current (DC) of solar projects plus 1 GWh of battery energy storage.
The financing will back four projects -- Lumina I and Lumina II totalling 840 MWp in Texas and Oberon I and Oberon II totalling 685 MWp plus 1 GWh of storage in California. All are expected to be up and running in 2023.
The company said the financing will allow it to complete its near-term portfolio, of which the four projects are part and which totals 2.2 GW of late-stage solar projects plus 1.4 GWh of storage. It follows USD 2.6 billion of financing announced in November 2021. Intersect said both transactions follow its approach by incorporating structuring and pricing provisions designed to account for the higher proportion of uncontracted revenue in the portfolio.
The latest package includes about USD 1.6 billion of construction financing, USD 775 million of tax equity, operational letters of credit and a USD-675-million portion of previously announced portfolio level term debt.
"These closings culminate a multi-year process raising more than USD 6 billion 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," said Intersect Power chief executive Sheldon Kimber.
With respect to the construction financing, MUFG and Santander acted as co-lead arrangers, while NORD/LB, KeyBanc Capital Markets, Helaba, CoBank, Bank of America and Zions Bancorporation as joint lead arrangers. The tax equity commitments were secured from Morgan Stanley Renewables Inc for Oberon II, an unnamed Fortune 100 technology company for Lumina I, and US Bank for Oberon I and Lumina II.
In July, Intersect placed its latest order with First Solar Inc (NASDAQ:FSLR), for 2.4 GW DC of the latter's thin-film photovoltaic (PV) modules.