Lightsource bp has successfully closed on a $348 million financing package, which will support the construction and operation of a 288-megawatt (MWdc) portfolio comprised of two utility-scale solar projects in Texas:
- 163MW Starr Solar project located in Starr County, Texas
- 125MW Second Division Solar project located in Brazoria County, Texas
Construction of both solar farms is underway, creating a combined 400 jobs during construction, with both projects scheduled to come online in 2024.
“This deal is an important milestone towards building out our growing portfolio of solar and storage projects across the United States, extending our relationship with several top-tier financing counterparties, each of whom have partnered with Lightsource bp on previous transactions. It’s also our first transaction to benefit from the transferability provisions of the Inflation Reduction Act of 2022 to monetize the projects’ investment tax credits,” Emilie Wangerman, Head of USA, Chief Operating Officer (interim), Lightsource bp.
“We also believe that this deal is the first U.S. renewable energy project finance transaction to include both a transferability bridge loan and an equity partner bridge loan allowing Lightsource bp and its lenders to maintain their positions as market leaders,” said Simms Duncan, Senior Vice President, Structured Finance, Lightsource bp.
Investing in energy security for Texans
Once complete, the Starr and Second Division Solar projects will join Lightsource bp’s operational fleet, bringing additional diversification to the Texas electric grid, especially important during extreme weather conditions.
Lightsource bp currently operates three solar projects in Texas: 260MW Impact, 163MW Elm Branch and 153MW Briar Creek Solar. The projects are real-life examples of the value of a diversified, integrated energy approach for our energy security and reliability.
- Three years ago, during Uri, the worst winter storm in decades, the Impact Solar project (Lightsource bp’s only commercially operational project in Texas at the time) was operating and produced enough electricity to power more than 10,000 homes.
- In the summer of 2023’s heatwaves, all three projects were operating, keeping the lights on and air conditioners running for Texas families while helping alleviate electricity price spikes.
- During recent January 2024’s winter storm Heather, the projects operated at 99% availability, an extraordinary achievement in harsh conditions.
