Longroad Energy, a U.S.-based renewable energy project developer, announced the financial closure and beginning of construction of the Sun Streams 4 project, comprising 377 MWdc solar photovoltaic and 300 MWac / 1200 MWh storage capacity.
The project, located in Longroad’s Sun Streams complex based in Maricopa County, Arizona, is expected to start commercial operations by mid-2025.
Arizona Public Service will purchase Sun Stream 4’s total output, enough to power 120,000 homes, via a long-term power purchase agreement. The project will help support system reliability in Arizona, particularly during the peak demand summer months.
The project is part of the Sun Streams portfolio that Longroad acquired from First Solar in early 2021. In addition to Sun Streams 4, the portfolio includes Sun Streams 2 – 200 MWdc solar project, which has been operational since mid-2021, and Sun Streams 3 – 285 MWdc solar photovoltaic and 215 MWac / 860 MWh storage project currently under construction with commercial operations expected in 2024.
Debt financing was led by CIBC and included ANZ, PNC, BNP Paribas, Commerzbank AG, CoBank, U.S. Bancorp Impact Finance, National Australia Bank, and Société Générale.
CIBC acted as Coordinating Lead Arranger, Administrative Agent, and Collateral Agent; ANZ served as Joint Lead Arranger and Green Loan Coordinator.
U.S. Bancorp Impact Finance served as Joint Lead Arranger and Depositary Bank.
Sun Streams 4 is expected to employ over 200 people during construction. The project will pay the prevailing wage and utilize registered apprentices under the Inflation Reduction Act.
According to Mercom’s 9M and Q3 2023 Solar Funding and M&A Report noted that announced large-scale project funding in the first nine months of 2023 came to $27.5 billion in 169 project funding deals, a 20% increase compared to $22.9 billion in 128 projects in 9M 2022.
Opdenergy, an independent renewable energy producer, recently closed a $252 million project financing package for two solar projects in the U.S.