Innergex has closed a $100m non-recourse bridge loan for a solar and battery storage project in Hawaii.
First Citizens Bank provided the finance to support the Hale Kuawehi project in its final stages and repay the corporate revolving credit facility, effectively reducing Innergex’s leverage.
The construction phase has been completed and Hale Kuawehi is now moving forward with the final stages of commissioning and testing.
Hale Kuawehi comprises 30MW of solar and a 120MWh battery.
Upon commissioning, the project will benefit from a 25-year power purchase agreement with the Hawaii Electric Light Company.
“This financing initiative reinforces Innergex’s commitment to maintaining a strong balance sheet, positioning us for continued financial flexibility and growth as we expand our presence in our key markets,” said Michel Letellier, president and chief executive, Innergex.
“Our Hale Kuawehi solar and battery storage project is nearing completion.
“With the construction phase now fully completed, we are focused on advancing the project toward full commissioning.”
Hale Kuawehi’s substation and interconnection points have been successfully energised earlier this month.
With the construction phase now fully completed and the project officially connected to the grid, the focus shifts to commissioning the installation (solar panels, inverters, and storage systems), bringing the project to full operational status in the first quarter of 2025.
In addition, the project is eligible to receive a federal Investment Tax Credit (ITC) sized to approximately 30% of the project’s eligible costs.
The construction bridge loan is expected to be repaid with the proceeds from a future long-term non-recourse financing after the facility reaches commercial operation.