DE Shaw Renewable Investments (DESRI) has reached financial close and started construction on the 79MW Assembly Solar 3 project in the US state of Michigan.
The PV plant, which is located in Lennon, has secured both construction debt and tax equity financing for the project.
Financing for the construction and operation of the project was provided by a syndicate of lenders, including HSBC as coordinating lead arranger and CIBC, National Cooperative Services Corporation, and Truist as joint lead arrangers.
PNC Bank provided a commitment for tax equity financing.
Assembly 3 also has a long-term power purchase agreement with DTE Electric for its output.
It is part of the Assembly Solar project, which will total 239MW once completed and is expected to provide low-cost, high-quality power to more than 43,000 Michigan homes a year.
The projects were developed by Ranger Power, a utility-scale solar developer headquartered in Chicago, in partnership with DESRI, and are being constructed by McCarthy Building Companies.
Assembly 1 began operating in December 2020 and Assembly 2 is slated to reach commercial operation in the third quarter of 2021.
Ranger Power president Paul Harris said: “DTE is leading Michigan’s transition toward a clean energy future and we’re proud to play a role in helping the state’s largest producer of renewable energy provide solar energy to people across Michigan.
“In addition, solar energy projects like Assembly Solar create jobs, generate local tax revenue, promote energy independence, and preserve farmland.
“We look forward to completing this project and developing future projects in Michigan and throughout the Midwest.”
DTE Energy director of renewable energy Dave Harwood said: “DTE Energy plans to add significantly more clean energy to its portfolio over the next 10 years.
“Adding Assembly Solar will help our company achieve Michigan’s 15% Renewable Portfolio Standard, and we are excited to see the project move into the next phase of the construction process and look forward to its completion.”
DESRI chief commercial officer Tom de Swardt said: “Closing financing on the final phase of the Assembly Solar projects represents another important step forward in DESRI’s mission to bring cost-effective, renewable energy to communities across the US.
“We particularly appreciate the continued support of our partners at PNC, HSBC, CIBC, National Cooperative Services Corporation, and Truist amid the headwinds from Covid-19.”
PNC renewable energy finance group managing director Mark Williams said: “PNC is pleased to provide DESRI with tax equity financing for Assembly 3.
“This project underscores our commitment to supporting customers and communities throughout the US with financing for high-quality renewable assets.”