Terra-Gen chief executive officer Jim Pagano said, "With this financing we continue the ambitious build-out of the nation’s largest wind energy center."
The Alta VII and IX projects secured funds from the US Department of Treasury’s construction and seven-year term loans, bridge loans to the ITC cash grants from ancillary credit facilities.
The funds will be used to fund the rest of construction costs and to pay back finance previously secured from ArcLight Capital Partners and Global Infrastructure Partners.
Mitsubishi-UFJ Financial Group affiliate Union Bank and RBS Securities were the co-book runners for the financing while joint lead arrangers include Bank of Montreal, Canadian Imperial Bank of Commerce, Key Bank, KfW IPEX Bank and Santander.
Sumitomo, BayernLB, DZ Bank, and Associated Bank were also part of the lender group.
The two projects are part of 1,320MW Alta Wind Energy Center (AWEC) located in Tehachapi, of which 1,020MW are currently in operation.
Terra-Gen Power said the projects will employ 100 V90-3.0 MW turbines manufactured by Vestas-American Wind Technology.
Renewable energy generated from Alta Wind VII & IX projects will be sold to electric utility Southern California Edison, under separate power purchase agreements which have been outlined in 1,550MW master power purchase agreement.
Terra-Gen has entered into an agreement to sell green energy from the 150MW Alta Wind VI phase to Everpower while the 150MW Alta Wind VIII phase has been sold to Brookfield.
The projects will be managed, operated and controlled by Terra-Gen Power, will utilize SCE’s Tehachapi Renewable Transmission Project.
Construction firm Blattner Energy will deliver the projects, which are expected to be complete by in the fourth quarter of this year.
The AWEC will reduce carbon dioxide emissions by more than 52 million metric tons and contribute $1.2bn to the local economy in Kern County.
Terra-Gen Power is an affiliate of ArcLight Capital Partners and Global Infrastructure Partners.
