The clean energy company has closed eight transactions in this regard to advance its six-project portfolio
Intersect Power expects the projects to begin operations by 2023. (Credit: torstensimon from Pixabay)
Intersect Power has secured $2.6bn in financing towards the construction and operations of 2.2GW solar power projects with 1.4GWh of storage in the US.
In this connection, the clean energy company has closed eight separate transactions to advance its six-project portfolio.
The projects, which are expected to begin operations by 2023, include Athos III, Oberon I, and Oberon II in California and Radian, Lumina I, and Lumina II in Texas.
According to Intersect Power, the transactions cover financing for construction, tax equity, financing for land, and portfolio level term debt.
Intersect Power founder and CEO Sheldon Kimber said: “These closings demonstrate what Intersect has been saying for some time now – that today’s long-term offtake contracts actually destroy value, and that there are innovative ways to finance clean energy assets which enable more valuable offtake structures.
“This financing will allow Intersect to deliver a core set of projects in the next two years that will serve as the platform for future growth into green hydrogen and beyond.”
The company said that the construction financing proceeds of around $800m will be used towards the 310MW + 453MWh BESS Athos III project in Riverside County and the 415MW Radian project in Brown County.
The Athos III and Radian projects, which are under construction, are expected to be commissioned in late 2022.
HPS Investment Partners and co-investors alongside the company’s existing Intersect investors CarVal Investors, Climate Adaptive Infrastructure, and Generate have agreed to provide a $1.4bn portfolio level, term debt funding.
Bank of America and Morgan Stanley are the co-lead arrangers as well as structuring agents on the term debt placement.
HPS Investment Partners governing partner Michael Patterson said: “Intersect Power is a market leader in developing clean energy infrastructure at the scale needed to move the needle on the incredibly important transition to a sustainable future.”
Parallelly, the company secured commitments of nearly $400m from tax equity investors such as Bank of America and Morgan Stanley Renewables. Intersect Power also entered into an offtake structure with Merrill Lynch Commodities for hedging the Radian project.
In June 2021, the company said that it had secured equity funding of $127m from Climate Adaptive Infrastructure and Trilantic North America. At that time, Intersect Power also announced closing of a debt facility of $482m with Generate Capital and CarVal Investors.