Energea, a renewable energy developer and operator that manages four renewable energy investment portfolios, announced that construction has begun on Iron Spur Solar, a 140 MW DC utility-scale solar power project in Snyder, Texas, for which Energea has provided financing.
Construction is expected to reach full operation in early 2029. Iron Spur's has secured an exclusivity agreement with an investment-grade corporate energy user for a long-term Power Purchase Agreement.
Energea will provide up to $5 million of secured convertible financing for the Iron Spur project. An initial $762,000 initial investment was made through its Solar in the USA Portfolio. The financing is Energea’s first for an industrial-scale solar project in the U.S., utilizing an innovative convertible loan structure that generates immediate income while maintaining a clear path to majority project ownership.
“Iron Spur is a strategic evolution for our Solar in the USA portfolio, adding utility-scale exposure and immediate cash generation during the traditionally non-income-producing construction phase,” said Mike Silvestrini, Co-Founder and Managing Partner at Energea. “We see excellent investment opportunities in industrial-scale solar and anticipate expanding further beyond distributed generation projects for which we are known, while maintaining Energea's focus on immediate cash yield and strong contractual protection. The Iron Spur Project speaks to our focus on risk-adjusted returns, providing secured debt protection today while preserving the optionality to convert to majority equity ownership as the project reaches key milestones.”
Energea starts construction at Iron Spur Solar project in Texas
Construction has begun at the 140 MW Iron Spur Solar Project in Snyder, Texas
The Iron Spur project is strategically located in West Texas, one of the most established and liquid utility-scale solar markets in the United States. The ground-mounted, single-axis tracked facility is expected to generate approximately 317 GWh of electricity annually once operational, supported by a 35-year land lease and a de-risked interconnection strategy that avoids costly substation upgrades.
Rather than acquiring the project outright, Energea is providing development capital through a secured, convertible loan to the project's special purpose entity, CT Solar One, LLC. The structure features monthly cash interest payments providing immediate income, a five-year maturity on each loan advance, and a first-priority security interest in 100% of the project's equity.
Iron Spur has secured key development milestones including site control, interconnection applications, and an exclusivity agreement with an investment grade buyer for a long-term Power Purchase Agreement. The project is eligible for the 30% federal Investment Tax Credit with potential domestic content upside, and benefits from a structured EPC procurement process aligned with ERCOT utility-scale benchmarks.
The Iron Spur project is being developed by Levona Renewables, a U.S.-based utility-scale solar developer, and is set to be part of a broader platform, with Levona and Energea exploring additional opportunities to collaborate on future utility-scale solar projects in the region.
