Commercial, Solar, Sourcing Renewables - March 11, 2024
Microsoft Adds 408-MW Solar Project in Texas
Microsoft signed a long-term power purchase agreement for the full capacity of the 408 MWac Ash Creek Solar project in Hill County, Texas.
Primergy Solar LLC, a developer, owner, and operator of utility-scale solar and storage projects, announced that it closed commitments for $588 million in debt financing for the project.
The Ash Creek Solar site is strategically sited near several existing fossil fuel plants and high energy demand. Construction has started on the project.
“The successful completion of this financing and a long-term PPA from Microsoft for Ash Creek is a testament to Primergy’s proven ability to creatively develop, finance, build, and operate large-scale renewables projects,” said Ty Daul, CEO of Primergy, in a statement. “Ash Creek aligns with Primergy’s mission to invest in well-located projects that offer regional diversity to our portfolio and serve the needs of leading corporate customers. Our team is extremely grateful for our continued partnership with prominent clean energy project financiers to make this a reality and are proud to work with Microsoft on meeting its sustainability commitments.”
The Ash Creek Solar project debt financing includes a construction loan, tax credit transfer bridge loan, and related letters of credit. The facilities are led by MUFG Bank, Ltd. and SMBC as lead structuring arrangers and seven coordinating lead arrangers (CLAs) including BNP Paribas, Commerzbank AG, Crédit Agricole Corporate and Investment Bank, ING Capital, KeyBanc Capital Markets, Norddeutsche Landesbank Girozentrale, New York Branch, and Rabobank.
Primergy engaged SOLV Energy, a leading utility-scale solar contractor, as the engineering, procurement and construction partner.
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