Project Finance Brief: Masdar Acquires 50% Stake in a 1.6 GW Renewable Portfolio in the US

NextPower III ESG acquires a 39 MW solar project in Portugal

February 15, 2021


From: Mercom Capital Group

Masdar (Abu Dhabi Future Energy Company) has achieved the first closing on the acquisition of 50% of a 1.6 GW clean-energy portfolio of projects in the U.S. from EDF Renewables North America. In 2020, they had agreed to partner in eight renewable energy projects, including three utility-scale wind projects in Nebraska and Texas totaling 815 MW, and five solar PV projects in California totaling 689 MW – two of which include lithium-ion battery energy storage systems representing 75 MW.

NextPower III ESG, NextEnergy Capital’s institutional solar fund, has acquired a 39 MW solar project in Portugal. Construction is expected to start in Q2/2021, with commissioning in Q1/2022. The project is being developed by Frequent Summer, a developer of renewable energy projects.

Indianapolis Power & Light Company (IPL), a subsidiary of the AES Corporation, has announced an agreement to acquire a 195 MW solar project. Expected to be completed in 2023, the solar project will be located in Clinton County, Indiana, and Invenergy will develop the project and manage construction.

Solar project developer UPC/AC has achieved financial close on the first 400 MW phase of the 720 MW New England Solar project in New South Wales, Australia. The hybrid project, featuring an up to 400 MWh battery storage system, is expected to be operational by the end of 2023. Debt financing for its initial stage was obtained on a merchant basis from the Bank of China, Commonwealth Bank of Australia, and Westpac.

AES has announced  $154.2 million in non-recourse debt financing for Luna Storage, a 400 MWh standalone lithium-ion battery storage project in the City of Lancaster, in Los Angeles County, California. The transaction was closed by sPower, an independent power producer, in December 2020. The $154.2 million non-recourse debt raise, arranged by KeyBanc Capital Markets, Credit Agricole Corporate and Investment Bank, Silicon Valley Bank, and Export Development Canada, is one of the largest financing deals for utility-scale standalone battery storage project.

ITP Renewables has acquired a majority ownership stake in a 6.3 MW Daisy Hill solar project, being developed near the town of Hillston in New South Wales, Australia, from VivoPower. ITP Renewables previously held a minority interest in the project and was jointly developing the project with VivoPower.

Belltown Power Texas, a developer of utility-scale solar projects, has completed the development and sale of five projects adding up to 750 MW during 2020, which brings the total Belltown track record to 930 MW.

Chile-based AES Gener, a producer and distributor of electricity, has concluded the capital increase to finance renewable energy projects in Chile and Colombia. In total, 1,976 million shares were subscribed, which is equivalent to 99.8% of the total securities placed with a charge to the capital increase for a total amount of approximately $306 million.

For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.

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