Clenera has closed construction and tax equity financing for a 105MW (dc) solar project it is developing in Montana, US.
The US subsidiary of Enlight Renewable Energy secured the construction loan from Bank of America, and Nord/LB.
The energy generated by the Apex solar facility – one of the largest in the state – will provide NorthWestern Energy’s Montana customers with additional renewable power through a long-term power purchase agreement, which will contribute to the energy company’s sustainability goals.
Apex Solar is expected to reach commercial operations in the second quarter of 2023.
The Renewable Energy Credits generated by the plant will be sold separately, providing additional revenues to the project.
Huntington National Bank will provide long-term financing via sale and leaseback tax equity financing for Apex Solar following commercial operations.
Clenera’s approach to this financing is unique in that the tax benefits and long-term financing will be combined in a single transaction, a practice “sought after” in the US and in the utility-scale solar industry.
“We are proud to work with Clenera and our partners to close this construction financing.
“This transaction demonstrates another important milestone in solar and clean energy development and is an integral part of Bank of America’s broader $1.5tn sustainable finance commitment by 2030,” said Omer Farooq, Managing Director in the Global Sustainable Finance Group at Bank of America.
“Huntington is excited to support Clenera with this unique financing solution for Apex,” said Christiaan Bouhuijs, the bank’s managing director of renewable energy finance.
“Our 25-year lease structure enables Clenera to recognize up-front value while providing long-term low-cost financing certainty. We also look forward to supporting additional utility-scale projects for Clenera in the near future.”
Greenberg Traurig served as legal counsel to Clenera, and Paragon Energy Capital acted as Clenera’s exclusive tax equity advisor on the transaction.