sPower secures $350m funding commitment for 620MW solar project in US

WCN Editorial Team 20 Apr 2020 NORTH AMERICA ENERGY & UTILITIES

sPower, a US-based independent power producer, has secured a commitment of $350m in tax equity funding for its 620MW (Direct Current) Spotsylvania Solar Energy Center in Spotsylvania County, Virginia.

Wells Fargo’s Renewable Energy & Environmental Finance group has agreed to provide the tax equity funding, making it one of the largest standalone investments in the solar industry in the recent past.

The company stated that the solar plant will be developed on nearly 6,350 acres of land out of which 3,500 acres have been dedicated for the solar project and the remaining 2,000 acres have been preserved as undeveloped, conserved land.

Out of the total 620MW capacity, 315MW will be sold to Microsoft. The Virginia Planning Commission had given its approval for the solar project, last January.

sPower structured finance and M&A vice president Brian Callaway said: “This tax equity commitment is momentous for sPower, especially during these uncertain times. Partnerships like this, with Wells Fargo, are a key component of sPower’s place as an industry leader.

“Finalising this deal now, for an asset this large, signifies confidence in the future of not only our company but also in the industry.”

The solar project is claimed to be sPower’s largest project till date. When operational, the project can offset nearly 825,000 metric tons of carbon dioxide emissions annually. It will generate up to 700 jobs during the construction phase and 20-25 permanent jobs will be created during its operational phase.

Additionally, the solar project will be a source of property tax revenue for Spotsylvania County, generating millions of dollars during its lifetime.

Wells Fargo’s Renewable Energy & Environmental Finance group managing director and originations head Andrew Kho said: “We are very proud to provide tax equity financing to sPower for this historic project.

“We look forward to continuing to support sPower and helping to accelerate the transition to a low carbon economy.”

sPower said that it expects to close the debt commitment in the coming weeks.

Presently under the construction, the solar plant will come online in phases this year and the total project is expected to be completed in the summer of 2021.

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sPower secures funding for a large solar plant in Virginia. (Credit: Unsplash/ZbynekBurival.)

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