Greenbacker Secures $92 Million Financing for Storage and Solar Portfolio
Greenbacker Capital Management, a renewable energy asset manager, announced that they have entered into a $92 million financing agreement with BMO Financial Group, who served as both lender and the administrative agent for the deal.
Wilmington Trust served as collateral agent and depositary agent.
Greenbacker says the financing package includes a construction to term loan, a tax equity bridge loan, a term loan commitment, and a letter of credit facility. The proceeds from the construction loan and tax equity bridge loan will be used to finance the construction of the Holtville battery energy storage system (BESS), Greenbacker’s largest standalone battery energy storage asset to date.
According to Greenbacker, Holtville’s 30 megawatts power capacity and up to 120 megawatts hour energy storage capacity means the project will be able to power approximately 16,200 homes for a six-hour period, on average. The project has a long-term contract in place with an investment-grade offtaker. The term loan will support the construction of a portfolio of community solar projects in the northeastern US. All portfolio projects are expected to enter commercial operation in 2024.
Holtville is compliant with the Equator Principles, a voluntary framework adopted by members of the financial industry, including BMO, to responsibly evaluate the environmental and social impacts of the projects they finance.
Greenbacker says BESS projects are an essential component of the clean energy transition, particularly as demand for—and investment in—renewables continue to increase. According to Greenbacker, they can contribute to both lower energy costs for consumers and improved resilience for the grid, as they store power that can be deployed during times of peak demand or power outage.
Community solar is helping expand access to clean energy by providing the opportunity for residential and commercial subscribers to utilize solar power without the cost and logistics of installing their own rooftop arrays. Subscribers can also lower their power bills by receiving credits for the energy generated by their share of the community solar project.
Greenbacker Renewable Energy Company seeks to invest in projects that sell clean power under long-term contract to counterparties such as utilities, municipalities and corporations.
Click here to visit The DI Wire directory page.
