ENERGY STORAGE

EnergyRe secures $240m in financing & tax equity for US solar-storage project

May 3, 2024

EnergyRe has secured $155 million in project financing and a $85 million tax equity commitment for its 108 MWdc Lone Star Solar project and 198MWh battery energy storage system (BESS), one of the largest battery systems in South Carolina.

Lone Star Solar is under construction and is expected to be operational by Fall 2024.

The $155 million in project financing for Lone Star Solar includes construction debt, tax equity bridge facility and letter of credit facility with Santander acting as the coordinating lead arranger. Meanwhile, Bank of America has committed $85 million in tax equity. The project qualifies for investment tax credits (ITCs) under the Inflation Reduction Act (IRA).

“Lone Star Solar reflects EnergyRe’s commitment to accelerating the U.S. energy transition with reliable, clean power,” said Miguel Prado, CEO of EnergyRe “We are grateful to our financial partners for supporting Lone Star Solar, which will be one of the largest solar and storage facilities in the Southeastern United States.”

Todd Karas, head of renewable energy finance at Bank of America, added: “We are delighted to support EnergyRe in their first US tax equity transaction. We recognise the Lone Star project as a milestone in EnergyRe’s growth and a noteworthy development for the State of South Carolina.”

Nuno Andrade, head of US global debt finance at Santander, added: “Santander is very proud to have supported EnergyRe in its first US project financing. EnergyRe has positioned itself as a key player across an array of generation and transmission assets in the US, which we know are crucial to decarbonising the energy sector and delivering clean energy jobs.”

In January 2023, EnergyRe announced a 10-year power purchase agreement with Dominion Energy South Carolina (DESC) for Lone Star Solar.