energyRe has announced securing $155 million in project financing and an $85 million tax equity commitment for a significant solar and battery project in South Carolina. The Lone Star Solar scheme, boasting a 108MW (dc) solar capacity and a 198 megawatt hour battery energy storage system (BESS), is currently under construction and is slated to commence operations in the latter half of 2024.
The financing package for the Lone Star Solar project encompasses construction debt, a tax equity bridge facility, and a letter of credit facility, with Santander serving as the Coordinating Lead Arranger. Bank of America has committed $85 million in tax equity. Notably, the project qualifies for Investment Tax Credits (ITCs) under the Inflation Reduction Act (IRA).
Miguel Prado, the CEO of energyRe, expressed the company's dedication to advancing the U.S. energy transition, stating, “Lone Star Solar reflects energyRe's commitment to accelerating the U.S. energy transition with reliable, clean power.” He further extended gratitude to financial partners for their support, emphasizing the project's significance as one of the largest solar and storage facilities in the Southeastern United States.
In January 2023, energyRe finalized a 10-year power purchase agreement with Dominion Energy South Carolina for the Lone Star Solar project, solidifying its role as a major contributor to the region's renewable energy landscape.
Upon completion, the Lone Star Solar scheme will stand as one of the largest solar and storage facilities in the southeastern United States. Syensqo, formerly part of the Solvay Group, has committed to purchasing 100% of the renewable energy certificates (RECs) generated by the project.
The announcement underscores energyRe's established presence and ongoing investment in clean energy development within South Carolina. The company boasts a portfolio of over 700MW of contracted solar projects in the state, with a regional development pipeline exceeding 7GW.
