Terra-Gen Closes Financing for First Phase of Solar Storage Facility in California

Terra-Gen, LLC, an independent renewable energy provider, has completed financing on the initial phase of its Edwards Sanborn Solar Storage facility in California.

The Edwards Sanborn solar storage facility is expected to produce clean energy for more than 158,000 homes and displace more than 307,000 tons of CO2 annually.  The storage facility comprises 346 MWac of solar modules and 1,501 MWh of battery storage.

Financing for the project includes USD 804 million senior secured credit facilities comprising a USD 400 million construction and term loan facility, a USD 328 million tax equity bridge facility, and a USD 76 million construction and revolving letter of credit facility. J.P. Morgan is providing the tax equity commitment for the initial phase of the project, with Deutsche Bank leading the construction and term financing.

“This financing allows us to complete the ongoing construction of the first phase of the Edwards Sanborn Solar Storage facility and help California meet its carbon reduction goals through the deployment of large-scale renewable energy,” said Jim Pagano, Terra-Gen’s CEO. “The truly transformative project ensures electricity reliability through the use of stand-alone and collocated energy storage.”

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The Edwards Sanborn project is in Kern County on land leased from Edwards Air Force Base as well as on adjacent private land. Mortenson is the full engineering, procurement, and construction contractor on both the solar and energy storage scopes with First Solar supplying the solar modules and LG Chem and Samsung supplying the batteries. The project currently employs more than 500 union workers and will have a peak of 750 workers on-site.

Terra-Gen expects the first 735 MWh of battery storage will be coming online in the third quarter of 2021 with the balance of this initial phase scheduled to be fully operational by the second quarter of 2022. Subsequent near-term phases of the project will be financed later this year and come online in the second half of 2022 and early 2023. When complete, the near-term phases of the Edwards Sanborn Solar Storage franchise will comprise 760 MWac of solar and 2,445 MWh of energy storage and is expected to be the world’s largest integrated solar-powered battery storage project.

“We value the creativity and innovation that our financing counterparties brought to the table. Working collaboratively, we were able to structure and deliver financing on a scale not previously seen for an integrated solar and energy storage project,” said John O’Connor, Terra-Gen’s Chief Financial Officer.

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In February 2021, Trimark Associates won the rights to the SCADA portion of the Edwards & Sanborn project.