Lightsource bp, the UK solar company half owned by BP Plc (LON:BP), on Monday said it has closed a financing package of USD 100 million for a 130-MW direct current (DC)/100-MW alternating current (AC) solar project in Alabama.
The project, Black Bear Solar, has a 20-year power purchase agreement (PPA) with Alabama Municipal Electric Authority (AMEA), a wholesale power provider for 11 public power utilities in Alabama. The PPA, announced in 2019, was instrumental in enabling the project financing, the developer said.
Minneapolis-based US Bank provided the tax equity investment for the project, while Spain’s Banco Santander and Japan’s Sumitomo Mitsui Banking Corp, provided debt. Lightsource bp will invest the balance of the equity needed. According to the 2019 announcement, the solar farm was estimated to represent a USD-125-million investment.
The Black Bear project, to be built in Montgomery County, is one of the largest solar projects in Alabama. It is expected to be completed in late 2022 and to boost the state’s total installed solar capacity by over 20%.
“This large scale solar project will help diversify AMEA’s fuel resources, and will continue to provide low-cost electricity to our Members’ customers,” said AMEA president and chief executive Fred Clark.
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