From: Mercom India
Renewable energy developer and independent power producer Enlight Renewable Energy’s U.S. subsidiary, Clēnera Holdings, has entered into a debt financing framework agreement for the CO Bar Complex in Arizona.
The financing commitments total about $2.6 billion and were provided by a consortium of seven global financial institutions, including BNP Paribas Securities, Crédit Agricole CIB, MUFG Bank, Natixis New York Branch, Norddeutsche Landesbank Girozentrale New York Branch, Société Générale, and Wells Fargo Securities.
The CO Bar Complex comprises five projects with about 1.2 GW of solar power generation capacity and 4 GWh of energy storage capacity. A 1 GW interconnection agreement anchors the complex.
The company said the projects will be developed as a single large-scale cluster under its “Connect and Expand” strategy, which uses a large grid connection to support multiple solar and energy storage projects. Commercial operations for the projects are expected to begin in phases during the second half of 2027 and the first half of 2028.
CO Bar 1 and CO Bar 2 have met the conditions precedent for the debt draw. CO Bar 3, CO Bar 4, and CO Bar 5 are expected to meet their applicable conditions precedent in the coming months.
CO Bar 1 combines solar generation and energy storage. CO Bar 2 and CO Bar 3 are solar generation projects, while CO Bar 4 and CO Bar 5 are energy storage projects. Construction of CO Bar 1, CO Bar 2, and CO Bar 3 has been fully mobilized. CO Bar 4 and CO Bar 5 are expected to be fully mobilized in the second half of 2026.
The total investment in the CO Bar Complex is expected to range from $2.9 billion to $3.05 billion. The financing structure includes $1.71 billion of term debt, estimated tax equity proceeds of $1.45 billion to $1.53 billion, and total complex investment net of tax equity of $1.45 billion to $1.52 billion.
The complex is fully subscribed through five offtake agreements, including 20-year busbar solar power purchase agreements and energy storage agreements with Salt River Project and Arizona Public Service. These agreements are expected to provide long-term contracted revenue across the complex.
Enlight said it expects to sign an agreement with a tax equity partner in 2027. Each project in the complex is expected to be eligible for the 10% Energy Community bonus tax credit. The company also intends to pursue the 10% Domestic Content bonus tax credit for CO Bar 4 and CO Bar 5.
Previously, in March 2026, the company secured $304 million in construction financing and term debt commitments for the Crimson Orchard project in Elmore County, Idaho, which is currently under development, and integrates solar power generation with energy storage, featuring a total solar capacity of 120 MW and an energy storage capacity of 400 MWh.
According to Mercom’s recently released Q1 2026 Solar Funding and M&A report, announced large-scale solar project funding increased by 61% in Q1 2026 compared with the same period in 2025.
