Longroad Energy, a U.S.-based renewable energy project developer, announced the financial close of 220 MW solar and 214 MW/855 MWh storage project in Pinal and Pima Counties, Arizona.
The project, named Serrano, is currently under construction and is expected to reach commercial operations by mid-2025. The output of the Serrano project will be purchased by Arizona Public Service (APS) via a long-term Power Purchase Agreement (PPA). The project will generate enough electricity to power roughly 61,000 Arizona homes and will support grid reliability.
Debt financing was led by CIBC and Societe Generale and included ANZ, PNC, Commerzbank AG, and U.S. Bancorp Impact Finance. CIBC acted as Coordinating Lead Arranger, Administrative Agent, Collateral Agent, and Green Loan Coordinator.
Societe Generale acted as Coordinating Lead Arranger. U.S. Bancorp Impact Finance served as Joint Lead Arranger and Depositary Bank. Athene Annuity and Life Insurance Company, an affiliate of Apollo Global Management, is the project’s tax equity investor and was advised by Apterra Infrastructure Capital.
“Longroad is pleased that our Serrano project has achieved the milestones of financial closure and commencement of construction,” said Paul Gaynor, CEO of Longroad Energy. “We are proud to support American manufacturing and the domestic solar supply chain as we expand our solar footprint in the robust Arizona market, which now surpasses 1.5 GW of operating or under construction projects. Longroad is grateful to our banking partners, APS, McCarthy, and state and county authorities as we move forward to bring this important project to commercial operations.”
Serrano’s 214 MWac / 855 MWh battery energy storage system (BESS) will be provided by U.S.-based energy storage platform provider Powin. The BESS will include SMA inverters and cells from AESC, which will be integrated into Powin’s Modular and Scalable Centipede Energy Storage Platform.
According to Mercom’s Q4 and Annual Solar Funding and M&A report, in 2023, announced debt financing came to $20 billion, 67% higher compared to $12 billion in 2022 and the highest amount raised since 2010. Securitization activity was a key contributor, with $3.4 billion in 11 deals.
Greenalia, a Spanish developer of renewable power projects, recently secured $200 million of three-year credit facilities to support the development of its 1.9 GW solar and wind ERCOT renewables pipeline in the U.S.
