Longroad Energy, a U.S.-based renewable energy project developer, announced the acquisition of a 98 MW solar project from Sunpin Holdings. The solar project called ‘Titan’ has been operational since December 2020 in Imperial County, California.
The project is located in the Imperial Irrigation District (IID) territory and transmits power to the California Independent System Operator (CAISO) via firm transmission from IID. The project produces enough energy for over 30,000 customers in Southern California.
Great Bay Renewables, an investment company, made a royalty investment of $46 million in the Titan project to finance Longroad’s acquisition.
The addition of Titan expands Longroad’s total operating solar capacity in California to approximately 340 MW.
Morgan Stanley acted as the tax equity investor for the project, and Allen & Overy served as Longroad’s counsel on this acquisition.
“Titan is an attractive project as it allows Longroad to expand our footprint in the important CAISO market while offering an opportunity to optimize value with our operations and development expertise,” said Charles Spiliotis, Longroad Energy’s Chief Investment Officer. “It is the first acquisition since closing our $500 million equity investment, demonstrating Longroad’s objective of rapidly growing our operating portfolio. We are also pleased to partner again with Great Bay Renewables on this acquisition,” he added.
In February 2021, Longroad Energy announced the project acquisition of Sun Streams 2, 4, and 5, amounting to ~900 MW of solar capacity plus the potential for 1-2 GWh of battery storage. The company closed the acquisition of Sun Streams 2, while the acquisition of Sun Streams 4 and 5 is subject to regulatory approvals and customary closing conditions. The projects were purchased from First Solar.
According to Mercom’s 9M and Q3 Solar Funding and M&A Report, in the first nine months of 2022, there were 207 project acquisitions totaling 52.1 GW, compared to 200 project acquisitions totaling 55.5 GW in the same period of last year.
