Greenbacker Capital Management has secured a $92 million financing agreement with BMO for the development of the 30MW Holtville battery energy storage system in California, marking a significant step in advancing the renewable energy landscape. The comprehensive financing package encompasses a construction-to-term loan, a tax equity bridge loan, a term loan commitment, and a letter of credit facility.
The allocated funds from the construction loan and tax equity bridge loan will be directed towards the construction of Greenbacker's most substantial standalone battery energy storage asset to date. Notably, the project has already secured a long-term contract with an investment-grade offtaker, providing a stable foundation for its future operations.
In parallel, the term loan will play a pivotal role in supporting the construction of a portfolio of community solar projects situated in the northeastern United States. The collective efforts are anticipated to culminate in the commencement of commercial operations for all portfolio projects by 2024.
It is worth highlighting that the Holtville project adheres to the Equator Principles, a voluntary framework embraced by financial industry members, including BMO. This framework underscores the commitment to responsible evaluation of the environmental and social impacts associated with the projects they finance. This strategic alignment reflects a broader industry trend toward sustainability and conscientious investment practices.
See also: California Regulators Sued by Environmental Groups Over Rooftop Solar Policy Changes
As the renewable energy sector continues to evolve, partnerships like this one underscore the crucial role played by financial institutions in fostering the development of clean energy projects. The collaboration between Greenbacker and BMO exemplifies a commitment to advancing renewable energy infrastructure while adhering to stringent environmental and social standards.
