Primergy Makes Significant Advancements in Solar Energy Financing
Primergy Solar, a frontrunner in the development, ownership, and operation of utility-scale solar and energy storage projects, recently secured an additional $350 million in tax equity financing for the Ash Creek Solar project, a significant 408 MWac endeavor. This monetary boost is a vital milestone for the project located in Hill County, which continues to progress.
Total Investment Climbing Towards $1 Billion
This latest round of financing pushes the total capital raised for the Ash Creek Solar project to an impressive nearly $1 billion. Earlier in the year, Primergy revealed it had finalized $588 million in project financing, further affirming their dedication to the successful realization of this impactful initiative.
Power Purchase Agreement with Microsoft
In conjunction with the project financing, Primergy also secured a long-term power purchase agreement with a major tech giant, Microsoft. This agreement underscores the commitment from both companies to advance clean energy solutions and further affirms the project’s potential to supply sustainable energy to various sectors.
Construction Progressing Towards Operational Goals
Currently under construction, the Ash Creek Solar project is on a trajectory to commence operations in early 2025. Tim Larrison, CFO of Primergy, emphasized the importance of tax equity financing in today's competitive energy market. He stated, "This level of successful tax equity financing in today’s ERCOT market is a testament to our team’s ability to develop best-in-class projects. Large-scale solar initiatives are critical for decarbonizing our electric grid, and we are grateful for the continued trust from our financial partners."
Collaboration with Financial Institutions
The leading tax equity investment came from a Fortune 500 telecommunications company, supplemented by investments from Truist Bank. Notably, Primergy received advisory services from Latham & Watkins LLP and Paragon Energy Capital, while the telecommunications firm and Truist Bank were guided by Milbank LLP and Cornerstone Financial Advisors LLC.
Historical Financing Efforts
This latest installment of financing contributes to approximately $3.8 billion in total debt and tax equity financing commitments that Primergy and Quinbrook Infrastructure Partners have secured for U.S. solar and battery storage assets since the onset of 2020. This achievement not only reflects the confidence investors have in Primergy's projects but also showcases the growing market for renewable energy investments.
Project Development Background
The Ash Creek Solar project has its roots in the developmental efforts of Orion Power Generation, LLC, a collaborative venture between Orion Renewable Energy Group LLC and Eolian. Primergy gained ownership of the project in 2021, setting the stage for its bright future.
About Primergy Solar
Primergy Solar is a prominent entity focused on the development, ownership, and operation of utility-scale solar photovoltaic and battery storage projects across multiple energy markets in the United States. The company boasts a robust portfolio that includes both operational and development-stage projects across regions like ERCOT, MISO, PJM, CAISO, WECC, and SERC. With a team rich in experience and knowledge, Primergy is at the forefront of delivering innovative energy solutions that align with sustainability goals.
Frequently Asked Questions
What is the total financing amount secured for the Ash Creek project?
The total financing raised for the Ash Creek Solar project has reached nearly $1 billion.
Who is involved in financing the Ash Creek Solar project?
Financing is led by a Fortune 500 telecommunications company and Truist Bank, with advisory support from various esteemed firms.
What is the significance of the power purchase agreement with Microsoft?
This long-term agreement showcases a commitment to sustainable energy solutions and enhances the project’s viability in the renewable energy market.
When is the Ash Creek Solar project expected to become operational?
The project is anticipated to be operational by early 2025, as construction progresses steadily.
What is Primergy's focus in the renewable energy sector?
Primergy specializes in utility-scale solar PV and battery storage projects, managing a diverse portfolio across various major energy markets in the U.S.
