Project Finance Brief: Pivot Energy Raises $100 Million from Fundamental Renewables
Ørsted divests a 50% stake in wind and solar portfolio for $410 million
From: Mercom Capital Group
Pivot Energy, a solar provider that develops, finances, builds, owns, and manages solar and energy storage projects, secured $100 million in debt financing for its renewable energy projects from Fundamental Renewables, an investment arm of Fundamental Advisors. Fundamental Renewables will provide a $100 million revolving development loan facility to Pivot Energy, funding a diverse range of solar and storage projects across the U.S.
Ørsted, a company that develops, constructs, and operates renewable energy projects, closed a transaction with Energy Capital Partners, an investment firm, to divest a 50 % ownership stake in a portfolio of three onshore wind farms and one solar farm in the U.S. The value of the transaction is $410 million. The portfolio, comprised of the onshore wind farms Lincoln Land Wind, Plum Creek Wind, and Willow Creek Wind, as well as the solar farm Muscle Shoals, is diversified across four U.S. states, representing a total capacity of 862 MW. The projects are all operational and have power purchase agreements for all or parts of the production capacity.
Sonnedix, an independent solar power producer, acquired ARCO, an independent power producer in Chile. Arroyo Investors established ARCO to pursue investment opportunities in the renewable generation markets in Chile. The platform consists of 290 MW of solar and wind projects. After this acquisition, Sonnedix has over 1 GW of total capacity in Chile and 7.4 GW globally. The company enters the wind generation space in Chile, where they have been present as a solar IPP since 2015.
Encavis, a wind and solar park developer and operator, completed non-recourse project financing of €32 million (~$32 million) for the Danish solar parks Svinningegården in the north-western part of Zealand with a generation capacity of 34 MWp and Rødby Fjord on Lolland, in the south-western part of Zealand (generation capacity of 71 MWp). The financing was provided by Rabobank, which is the first to conclude a joint transaction with Encavis AG in Denmark. The main component of the financing is a term facility fully secured through an interest rate swap and a cross-currency swap over the entire term of the loan.
EUSOLAG European Solar, a solar project developer, acquired a project of 35 MW capacity in the grid-connection stage from a specialized developer. The asset is expected to produce above 40,000 MWh per year. The commercial operation date is planned for Q3 2023, whereby connection permits have already been issued. EUSOLAG has concluded commercial negotiations to sell 50% of the project’s green solar energy to a large energy utility company.
Greenbacker, a sustainable infrastructure investment firm, acquired 7.6 MW of nine pre-operational solar projects from Norwich Solar. When completed, the projects will lower power bills for local farmers and give new life to brownfield sites restricted from most uses. The projects have long-term Net Metering Agreements with over 30 agricultural offtakers.
Vena Energy, a renewable energy company, reached financial close on the first stage of the 125 MW Wandoan South Solar Project, located in the local government area of Western Downs. Vena Energy’s partner banks, DBS, ING, Intesa Sanpaolo, OCBC Bank, and SMBC, have agreed to provide debt and ancillary facilities to the 125 MW Wandoan South Solar Stage 1.
For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.
Read last week’s project finance brief.