US independent power producer (IPP) Greenbacker Renewable Energy Company LLC has successfully obtained $437 million in financing to facilitate the repowering of three wind farms located in Iowa and Minnesota, the company announced on Wednesday.
The financing package includes $81.5 million in construction bridge loan facilities provided by BayernLB, an existing lender, as well as long-term debt and tax equity financing from Huntington National Bank, totaling $355.7 million. This marks Greenbacker's inaugural financing deal through a sale-leaseback structure, signaling a strategic diversification in its financing approaches.
Bedrock Renewables LLC played a pivotal role in supporting the development and financing of these repowering projects, which are integral to enhancing the operational efficiency and sustainability of existing wind assets.
The financing will bolster the upgrade of three wind farms: the 30-MW Community Wind South in Minnesota, alongside the 42.5-MW Elk and the 37.5-MW Hawkeye wind farms in Iowa. With these enhancements, the combined capacity of 110 MW will significantly boost electricity generation, providing sustainable energy to over 45,000 homes annually, according to Greenbacker.
Moreover, Greenbacker's repowering initiatives align with federal incentives for renewable energy projects, including the 30% Investment Tax Credit. Notably, these projects also stand to benefit from the additional 10% domestic content bonus introduced by the Inflation Reduction Act (IRA), highlighting a commitment to leveraging US-made turbine components.
