Project Funding Brief: Ashtrom and Kenlov to Acquire 1.1 GW of US Solar Portfolio

From: Mercom Capital Group

Ashtrom Group, an Israel-based construction and real estate company, and Kenlov Renewable Energy, an independent power producer, sign a definitive agreement for the acquisition of four solar power plants projects in the United States with a planned capacity of approximately 1.1 GW from Texas developer OnPeak Power. Three of the first projects acquired with a planned capacity of 900 MW are located in Texas and the fourth in Idaho. The first of the projects is expected to be implemented at the end of 2022.

Kobus Renewable Energy III, the third private equity fund led by Kobus Partners, a fund management company specializing in renewable energies and energy infrastructure, has agreed to acquire three solar projects totaling 250 MW in Spain from Esparity Solar, a developer of solar projects. Financial and other terms of the acquisition were not disclosed. The project includes a 150 MW Cordovilla solar project located in Navarre, Salinetas and Salinetas II with an installed capacity of 50 MW each, located in the province of Alicante. All projects are expected to generate electricity from 2023, providing electricity to approximately 45,000 households per year.

Lightsource bp, developer of solar projects, secured $ 476 million for a planned portfolio of 596 MW of solar projects in three US states – Indiana, Alabama and Colorado. The funding consists of $ 376 million for the 293 MW Sun Mountain project in Pueblo, Colorado; the 173 MW Bellflower project in Henry and Rush counties, Indiana; and $ 100 million for the 130 MW Black Bear Project in Montgomery County, Alabama. Bank of America provided the tax capital investment for Sun Mountain and Bellflower. Debt financing for the projects was provided by ING Capital, Sumitomo Mitsui Banking Corp., HSBC Bank USA. NatWest acted as the mandated manager of the financing arrangers. Both projects are under construction and will reach planned commercial operation by the end of 2022.

Scout Clean Energy, a developer of renewable energies, announcement that it acquired the Stockton Lake solar project from Azimut Renewables. As part of the development services agreement, Azimuth will continue to be an active partner in the development of the site. The current development plan envisions a 112 MW solar project located on a ranch in Polk County. Once development is complete, Scout will purchase the equipment, build and operate the solar project.

Palisade Investment Partners, investment company, announcement the refinancing of a five-year $ 125 million loan facility for the 148 MW Ross River solar project in Townsville, Queensland. The credit facility has been provided by MUFG Bank, Westpac Banking Corporation and Australia and New Zealand Banking Group Limited (ANZ). The project entered commercial operation at the end of 2018 and has a long-term power purchase agreement with EnergyAustralia for 80% of the production.

Doral Renewables, the American renewable energy development arm of the Israeli group Doral, announcement that it had acquired the Brenneman solar project from AVANGRID. The project is a 150 MW large-scale photovoltaic solar panel development project in Macon County, Georgia.

Greencoat Renewables a Between the Spanish market with an agreement to acquire the 50 MW Torrubia solar project, currently under construction, from Lightsource bp. The deal will be finalized when the solar farm is fully operational. The project located in La Muela is expected to enter service in the last quarter of 2022.

ThomasLloyd Energy Impact Trust a completed the acquisition of a minority stake in three solar projects in the Philippines with a combined capacity of 80 MW. Specifically, ThomasLloyd Energy purchased a 40% economic stake in Negros Island Solar Power (NISPI), which owns all three assets.

Globeleq, an independent electricity company in Africa, and its project partners, Source Energia, a renewable energy developer, and Electricidade de Mocambique (EDM), the Mozambican company national electricity company, have reached financial close on the 19 MW Cuamba solar PV project with a 2 MW / 7 MWh energy storage system. The $ 36 million project in Cuamba district, Niassa province, will provide power produced through a 25-year power purchase agreement with EDM. The Emerging Africa Infrastructure Fund (EAIF), a member of the Private Infrastructure Development Group (PIDG), provided $ 19 million in debt financing, while PIDG’s Viability Gap Funding (VGF) provided $ 7 million. CDC Plus, the technical support department of CDC Group, contributed to a $ 1 million grant for the battery energy storage system. The Spanish company Grupo TSK has been appointed as the EPC contractor for the project, and E22, which is part of the Spanish group Gransolar, will supply a battery energy storage system.

Sonnedix, an independent solar energy producer, has completed the acquisition of an operational portfolio of 5.6 MW in the towns of Borna (Saxony) and Hegnenbach (Bavaria), Germany, from Danish investors. The solar photovoltaic portfolio includes two ground mounted single axis solar photovoltaic projects located in Saxony and Bavaria, Germany. The two projects have been operational since 2005 (Borna) and 2008 (Hegnenbach) and benefit from the EEG feed-in tariff regime.

Macquarie’s Green Investment Group (GIG), developer, sponsor and investor, has reached financial close of a 40 MW battery storage project in Maldon, Essex. Earlier this year, GIG announced the acquisition of a portfolio of utility scale and distribution connected battery storage projects in the UK from Capbal Limited. This portfolio includes seven projects strategically located in highly congested areas of the UK grid, including Scotland and the South East of England. The 40 MW / 40 MWh, Maldon project is the first project in the portfolio to reach financial close.

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Read last week’s project funding brief.


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