Lightsource BP secures financing for 596 MW of solar projects in US

Lightsource BP Renewable Energy Investments Ltd. secured $476 million in financing for a 596-MWdc portfolio of solar projects in three U.S. states, it said in a series of announcements Dec. 21.

The financing consists of a $376 million package for the planned 293-MWdc Sun Mountain project in Pueblo, Colo., and the planned 173-MWdc Bellflower project in Henry and Rush counties, Ind., and a $100 million package for the planned 130-MWdc Black Bear project in Montgomery County, Ala.

The output of the Sun Mountain project will be sold to Xcel Energy Inc.'s Colorado utility under a long-term power purchase agreement. The output of the Bellflower project will be supplied to Verizon Communications Inc. under a virtual power purchase agreement announced at the beginning of 2021.

Bank of America is providing the tax equity investment for Sun Mountain and Bellflower. Debt for the projects was provided by ING Capital LLC, Sumitomo Mitsui Banking Corp., HSBC Bank USA NA and NatWest as the mandated lead arrangers.

Construction has started on both projects, with commercial operation expected by late 2022.

The financing for the Black Bear project includes a tax equity investment from Minneapolis-based U.S. Bank and debt from Banco Santander and Sumitomo Mitsui Banking Corp.

The project will consist of 350,000 solar panels installed across 800 acres in Montgomery County, Ala. Construction is expected to be completed in late 2022. The project will increase Alabama's total installed solar capacity by more than 20%.

The facility's output is secured under a 20-year, fixed-price contract with the Alabama Municipal Electric Authority, a wholesale power provider for 11 public power utilities in Alabama that serve about 350,000 customers.

Lightsource BP will provide the balance of the equity requirements for the portfolio.