- Press Releases
August 2 (Renewables Now) - US renewables developer Terra-Gen LLC today said it has closed the financing for the first phase of its massive Edwards Sanborn Solar Storage facility in Kern County, California.
The construction of the solar plant featuring 346 MW of AC power and 1,501 MWh of battery storage is currently happening at the site.
To finance this stage of the project, Terra-Gen secured USD 804 million (EUR 676m) senior secured credit facilities. The amount includes a USD-400-million construction and term loan, a USD-328-million tax equity bridge facility and a USD-76-million construction and revolving letter of credit facility.
The initial 735 MWh of storage is expected to be completed in the third quarter of 2021 and the remaining part of the first phase to be fully operational by next year's second quarter.
The developer said subsequent near-term phases will be financed later in 2021 and come onstream in the second half of 2022 and early 2023. Completion of the near-term phases will result in 760 MW of solar and 2,445 MWh of energy storage, representing the world's largest integrated solar powered battery storage project, according to the announcement.
The Edwards Sanborn scheme is located on land leased from Edwards Air Force Base and on adjacent private land. Mortenson is the engineering, procurement and construction (EPC) contractor, First Solar Inc (NASDAQ:FSLR) is supplying the solar modules, and LG Chem Ltd (KRX:051910) and Samsung Electronics Co Ltd (KRX:005930) the batteries.
When announcing in December 2020 an agreement with Mortenson to proceed on the Edwards & Sanborn project, Terra-Gen said that the project would consist of 1,118 MW of solar and 2,165 MWh of energy storage.
Deutsche Bank is leading the construction and term financing, while JP Morgan is providing the tax equity commitment. Deutsche Bank is also sole bookrunner and joint lead arranger together with BNP Paribas and ING Capital LLC. Mizuho Bank, CoBank, Kookmin Bank, Rabobank and KeyBank are lead arrangers.
(USD 1 = EUR 0.841)