Terra-Gen, an independent renewable energy provider, raised $959 million in financing the second phase of its Edwards Sanborn solar storage project in Kern County, California.
The second phase solar storage project comprises 410 MW of solar capacity and 1,786 MWh of battery storage.
The first phase of the Edwards Sanborn project was financed in July 2021, and the 345 MW of PV and 1,505 MWh of storage are now fully operational.
The financing for the second phase includes $959 million in senior secured credit facilities comprising a $460 million construction and term loan facility, a $403 million tax equity bridge facility, and a $96 million construction and revolving letter of credit facility. U.S. Bank is providing the tax equity commitment for the project, with BNP Paribas, CoBank, ING, and Nomura Securities leading the construction and term financing.
Terra-Gen expects the solar portion of the second phase to come online in the third and fourth quarters of 2022, with the battery storage scheduled to be fully operational by the third quarter of 2023.
“Consistent with the first phase of the Edwards Sanborn project, the second phase deploys an innovative offtake structure that has been well received in the financing markets and allows us to raise the capital necessary to progress the construction of this transformative project. Once complete, Edwards Sanborn will play a significant role in helping California meet its carbon reduction goals and ensure electricity reliability through stand-alone and collocated energy storage,” said Jim Pagano, CEO of Terra-Gen.
According to Mercom’s 1H and Q2 2022 Solar Funding and M&A Report, announced large-scale project funding in Q2 2022 came to $6.9 billion, a 24% decrease compared to $9 billion in Q1 2022. The European Bank for Reconstruction and Development (EBRD) has recently provided around $100 million in financing to Adnan Polat Enerji Yatirimi A.S. (APEY), a renewable energy company, as part of a financing package jointly provided by Turkiye Is Bankasi, Turkiye Sinai Kalkinma Bankasi (TSKB) and Garanti BBVA.