US developer DE Shaw Renewable Investments has acquired and secured debt finance for the 450MW Arroyo solar-plus-storage project in New Mexico.
Arroyo will comprise 300MW of solar and a 150MW battery facility located in McKinley County.
The first phase of the project is expected to come online in June 2022, with full commercial operation anticipated for autumn 2022.
Arroyo is DE Shaw’s first solar project with co-located battery storage to enter construction and was acquired from the original developer Centaurus Renewable Energy.
Arroyo has two offtake contracts with Public Service Company of New Mexico (PNM) for the solar and storage output respectively.
Financing for the acquisition and construction of the project was led by Nord/LB and included four additional joint lead arrangers – MUFG Union Bank, Sumitomo Mitsui Banking Corporation, National Bank of Canada and Societe Generale.
Sundt Construction will build the solar facility, which will use Nextracker trackers.
ECI is providing the design for the substation and switchyard that will be built by its subsidiary, EPC Services Company.
Tesla will supply and commission megapacks for the facility, and New Mexico-based Affordable Solar Installation will construct the battery energy storage system.
Solv and Tesla will provide ongoing operations and maintenance services to the facility once operational.
DE Shaw chief executive David Zwillinger said: “DESRI is proud to partner with PNM to provide clean energy to their customers.
“Incorporating battery storage in solar projects has the potential to change the landscape of the renewable energy industry going forward, and we’re excited to offer storage capabilities to PNM as part of the Arroyo project.”
PNM vice president of generation Tom Fallgren said: “As PNM continues our path to 100% carbon-free electricity, we eagerly await the first of the large scale batteries and associated solar to come on our system.
“This project demonstrates New Mexico’s leadership throughout the nation in reducing our carbon footprint.”