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‘Good projects are getting done’: Renewables developers raise billions despite economic pressures

‘Good projects are getting done’: Renewables developers raise billions despite economic pressures
(Credit: Intersect Power)

Amid high interest rates, several companies closed billions of dollars combined in the past few days to fund new clean energy projects and a construction warehouse facility.

Leeward Renewable Energy (LRE) secured $1.25 billion in financing for its new construction warehouse facility; rPlus Energies secured over $1 billion for a solar + storage project; and Intersect Power closed two separate transactions totaling $837 million for three standalone battery storage projects.

Intersect Power

Intersect Power’s transactions cover portfolio-level construction debt, tax equity, and term debt financing.

All three BESS — Lumina I, Lumina II, and Radian — are expected to be operational in 2024. Each project comprises 86 Megapacks, Tesla’s battery energy storage system, and Lumina II and Radian will be operated by Autobidder, Tesla’s real-time trading platform. The three sites will move from concept to commissioned in under 12 months, Intersect Power said, and each will provide a capacity of 320 MWh of battery storage with a two-hour duration. These batteries provide additional flexibility to Intersect’s Texas operating fleet, offering 1.2 GWp of solar power with 1 GWh of battery storage.

“Despite high interest rates, good projects are absolutely getting done,” Intersect Power CEO Sheldon Kimber told Renewable Energy World. “Experienced developers with strong capital partners and thoughtful offtake and supply chain strategies will be able to get projects built in most markets. Our success through the supply chain carnage and inflationary cycle of the past few years proves that out.”

Leeward Renewable Energy

LRE announced the closing of its $1.25 billion construction warehouse facility, which provides three years of committed capital designed to fund a multi-year build plan of advanced and construction-ready projects from LRE’s development pipeline.

Initially, the $1.25 billion revolving facility will fund the construction of six fully contracted wind, solar and battery storage projects, totaling nearly 1 gigawatt (GW) of capacity, which are expected to be completed and begin operation throughout 2024 and 2025. LRE’s renewable energy platform currently includes more than 3 GW of operating assets and more than 30 GW of projects in its development pipeline to meet rising demand.

“LRE has experienced tremendous growth, and this financing arrangement supports our momentum by funding the construction of renewable energy projects in our development pipeline over the next three years,” said Chris Loehr, LRE’s Senior Vice President, Finance. “We are pleased to have the continued support from leading financial institutions, reflecting a shared commitment to advance clean energy. This arrangement further demonstrates the market’s confidence in our strategy of delivering reliable, long-term renewable energy solutions for our customers and contributing meaningfully to the communities we serve and the environment.”

rPlus Energies

rPlus Energies announced the successful closing of over $1 billion in construction debt financing for its Green River Energy Center project subsidiary.

Located in Emery County, the project is comprised of 400 megawatts (MW) of solar PV and 400 MW/1,600 MWh of battery storage and has a power purchase agreement with PacifiCorp.

“Successfully securing capital for the Green River Energy Center demonstrates the rPlus team’s ability to execute on our expansive and diverse energy portfolio,” said Luigi Resta, President of rPlus Energies. “Our team is incredibly grateful for our continued partnership with prominent clean energy financiers, who enable us to navigate the complexities of today’s market and we look forward to additional opportunities to grow as a new independent power producer in the sector.”

Green River Energy Center currently stands as one of the largest planned solar-plus-storage facilities in Utah, rPlus Energies said.

“Building strong relationships with the five financial institutions we partnered with as well as with those on the ground in Emery County, Utah allowed the project financing for the Green River Energy Center to be relatively straightforward,” Resta said. “Securing a long-term offtake agreement with PacificCorp was also critical to this process and helped to provide the needed assurance and security for the significant $1+ billion investment in the project.”