EnergyRe secures financing for South Carolina solar and storage project

The US$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. Bank of America has committed US$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 US 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 South-eastern US.”

“We are delighted to support energyRe in their first U.S. tax equity transaction,” added Todd Karas, Head of Renewable Energy Finance at Bank of America. “We recognise the Lone Star project as a noteworthy development for the State of South Carolina.”

“Santander is very proud to have supported EnergyRe in its first US project financing,” commented Nuno Andrade, Head of US Global Debt Finance, Santander. “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. We are truly appreciative of energyRe’s partnership and trust.”

In January 2023, energyRe announced a 10-year power purchase agreement (PPA) with Dominion Energy South Carolina (DESC) for Lone Star Solar. Upon completion, Lone Star Solar will be one of the largest solar and storage facilities in South-eastern US. Over the life of the project, Lone Star Solar will generate more than US$10 million in local property taxes and create approximately 185 jobs during construction.

Syensqo, formerly part of the Solvay Group, will purchase 100% of the renewable energy certificates (RECs) generated by Lone Star Solar; the clean power generated by Lone Star Solar will help Syensqo reduce carbon emissions for approximately 35% of its US electricity purchases and decrease greenhouse gas emissions of its operations by 73 000 tpy.

This announcement builds on energyRe’s track record of investment and clean energy development in the Palmetto State. energyRe has more than 700 MW of contracted solar projects in South Carolina and a regional development pipeline of more than 7 GWs.

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Read the article online at: https://www.energyglobal.com/energy-storage/30042024/energyre-secures-financing-for-south-carolina-solar-and-storage-project/