Project Finance Brief Masdar JV Secures Finance for a 145 MW Floating Solar Project

Masdar, a renewable energy company, and PT PJBI, a subsidiary of Indonesia’s state-owned electricity company PT PLN, announced that financial close had been achieved on the 145 MW Cirata floating solar PV project, and construction work has begun. Financing for the project was arranged through Sumitomo Mitsui Banking Corporation, Societe Generale, and Standard Chartered Bank. The project is being developed by PT. Pembangkitan Jawa Bali Masdar Solar Energi, a joint venture between Masdar and PT PJBI and is expected to begin commercial operation in the fourth quarter of 2022.

Portuguese energy conglomerate Galp acquired 220 MW of solar PV projects in Spain from Enerland. The acquisition involves one cluster of projects totaling 62 MW in Zaragoza, already at the ready-to-build phase and with a commercial operation date expected during 2022. In addition, it comprises three projects in Castilla y Léon and Aragón totaling 161 MW at an advanced stage of development, with a commercial operation date expected during 2023.

Gresham House, an asset manager, has acquired a 50 MW Low Farm solar project in Lincolnshire, the UK, from Anesco, as part of a three-year development and construction partnership. All engineering, procurement, and construction will be handled by Anesco, with the company also providing long-term operations and maintenance once the sites are energized. Construction is expected to begin in 2022.

Altius Renewable Royalties reports that Great Bay Renewables, its subsidiary jointly controlled with funds managed by affiliates of Apollo Global Management, has closed a $35 million royalty investment with Longroad Energy related to Longroad’s 331 MW Prospero 2 solar project located in Andrews County, Texas. ARR and the Apollo Funds have agreed to fund the Longroad investment with 70% of the capital provided by the Apollo Funds and the balance of $11 million to be funded directly by ARR.

AES Indiana, a subsidiary of the AES Corporation, announced plans to acquire and construct a 250 MW solar and 180 MWh Petersburg solar and energy storage project in Pike County, Indiana. AES Indiana will acquire the project from a subsidiary of NextEra Energy Resources. NextEra Energy Resources will develop and construct the project. The project requires approval by the Indiana Utility Regulatory Commission. If approved, the project is expected to be operational by May 1, 2024.

A German commercial bank has extended €2 million (~$14.3 million) in debt to an unnamed client that will build 33.5 MW of solar projects on the Balearic Islands. The financing, with a term of 16.5 years, was arranged by consultancy Capcora, which served as the exclusive financial advisor. The non-recourse debt was structured on the level of a Spanish holding company and includes a commercial and KfW tranche. It matures in December 2037.

Chilean gas company Empresas Gasco has signed an agreement to sell a 50% stake in its special purpose vehicle, developing a 150 MW photovoltaic project in the region of Atacama. The company would sell half of Copiapo Energia Solar to Uruguayan firm Ampres for $2.3 million. Ampres and Empresas Gasco will be the only shareholders of the vehicle and develop the Copiapo PV project together going forward.

EDP Renewables, a renewable energy company, signed a sale and purchase agreement with Mirova, an affiliate of Natixis Investment Managers, to sell 100% equity stake in a 149 MW wind portfolio located in Poland for an estimated Enterprise Value of approximately €303 million (~$359.2 million). The transaction comprises six wind projects, out of which 20 MW are in operation since 2020, and 129 MW are under construction with an expected commercial operation date until 2021.

Terra-Gen, an independent renewable energy producer, completed financing on the initial phase of its Edwards Sanborn solar storage facility in Kern County, California. The initial phase is composed of 346 MW of solar and 1,501 MWh of battery storage. Financing for the project includes $804 million senior secured credit facilities comprising a $400 million construction and term loan facility, a $328 million tax equity bridge facility, and a $76 million construction and revolving letter of credit facility. J.P. Morgan is providing the tax equity commitment for the initial phase of the project, with Deutsche Bank leading the construction and term financing. Deutsche Bank is also the sole bookrunner and joint lead arranger, BNP Paribas and ING Capital serving as joint lead arrangers. Mizuho Bank, CoBank, Kookmin Bank, Rabobank and KeyBank are lead arrangers.

Asset manager Capital Dynamics said that it had completed tax equity financing for a 60 MW/240 MWh battery storage project at the 280 MW California Flats solar complex site. The tax equity investments, secured through Capital Dynamics’ Clean Energy Infrastructure business, were provided by Goldman Sachs and US Bank. Amis, Patel & Brewer acted as Capital Dynamics’ legal advisors in the financing deal.

Innova Energy, a private equity-backed solar energy company, managed by Innova Capital, completed the sale of a 3.7 MW portfolio of rooftop-mounted solar photovoltaic (PV) projects to an investment vehicle managed by Octopus Renewables. The portfolio comprises 57 rooftop-mounted solar PV projects in the U.K., all of which benefit from feed-in-tariff.

India-based power generation company Torrent Power has signed an agreement with Lightsource India and Lightsource Renewable Energy to acquire 100% of the share capital and all securities of the special purpose vehicle (SPV) Lightsource Renewable Energy Holdings Limited Renewables India SPV1, which operates a 50 MW solar project. The 50 MW solar project commissioned in April 2018 is located in Wagdari and Gogaon villages of the Solapur district in Maharashtra.

Endesa, a Spanish electric utility company through its renewables subsidiary Enel Green Power Espada, has acquired a portfolio of eight projects totaling 900 MW from the Andalusian group Prodiel power in various municipalities in Castilla la Mancha and Madrid, the installation of which will entail an investment of €630 million (~$747 million). The eight projects acquired from Prodiel (all of them have connection rights from Red Eléctrica) will begin construction in 2023 and foreseeably enter into operation between that year and 2024.

For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.

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Image credit: Lightsource BP