Recurrent Energy, a US solar developer and subsidiary of Canadian Solar, has successfully closed financing for its upcoming 134-megawatt (MW) Liberty solar project in the state of Texas. The project, which received planning permission from the Texas government in 2022, is currently under construction and is expected to play a significant role in Texas' energy landscape.
The financing package for the Liberty solar project, valued at $200 million, involves contributions from several prominent financial institutions. Dutch bank Rabobank, German investor Nord LB, and US Bank will provide construction debt, a letter of credit facility, and a term facility, collectively amounting to $120 million. Additionally, a subsidiary of US Bank, US Bancorp Impact Finance, will contribute $80 million in tax equity.
See also: Recurrent Energy Signs Virtual Power Purchase Agreement for 100MW Solar Project in Texas
Recurrent Energy's strategic approach to retaining greater ownership of projects in select markets has yielded positive results, with the Liberty Solar project marking the second project financing the company has closed in North America during the summer. The project's anticipated commercial operations commencement in 2024 aligns with Recurrent Energy's commitment to advancing solar energy in the region.
CEO of Recurrent Energy, Ismael Guerrero, highlighted the significance of the Liberty Solar project within the Midcontinent Independent System Operator (MISO) market, stating, “Liberty Solar is a strong project in the Midcontinent Independent System Operator (MISO), a growing market for solar energy.”
Notably, the Liberty project's connection to MISO's network sets it apart from the majority of power projects in Texas, which are typically linked to ERCOT, the state's primary transmission grid and wholesale market operator. This strategic shift will diversify Texas' energy sources by injecting more solar power into a historically fossil fuel-dependent grid.
MISO's extensive network spans 15 US states and the Canadian province of Manitoba, encompassing a significant geographical area and catering to diverse energy demands. Presently, solar projects within the MISO network contribute 2.06 gigawatts (GW) of electricity, equivalent to 3.23% of the network's total electricity output. While natural gas and coal continue to dominate the energy mix, producing 22GW and 18.6GW, respectively, the addition of the Liberty project's solar capacity is expected to positively influence the transition towards cleaner energy sources in the region.
The Liberty Solar project's financing success underscores the growing momentum of renewable energy development in Texas and signifies a promising step towards a more sustainable and diversified energy landscape.
