sPower has closed on a USD 350 million tax equity commitment for the 620 MW dc Spotsylvania Solar Energy Center in Spotsylvania County, Virginia.
sPower, a leading renewable energy Independent Power Producer (IPP), has announced that the company has closed on a USD 350 million tax equity commitment for Spotsylvania Solar Energy Center in Spotsylvania County, Virginia. At 620 MW DC, it is the largest solar project east of the Rockies. The project is currently under construction, with phases coming online this year through project completion in the summer of 2021.
Wells Fargo’s Renewable Energy & Environmental Finance group is the sole investor for the USD 350 million tax equity commitment, making this one of the largest standalone, tax equity investments in the solar industry’s recent history.
“This tax equity commitment is momentous for sPower, especially during these uncertain times. Partnerships like this, with Wells Fargo, are a key component of sPower’s place as an industry leader,” said Brian Callaway VP Structured Finance and M&A, sPower. “Finalising this deal now, for an asset this large, signifies confidence in the future of not only our company but also in the industry.”
The 620 MW DC solar project represents sPower’s largest project to date and is the largest single-asset financing in the company’s history. The project will offset approximately 825,000 metric tons of carbon dioxide emissions each year and will generate an estimated 700 new jobs during the construction phase and approximately 20–25 full-time positions during operations.
“This is a landmark project for our company, Spotsylvania County and Virginia. We reached this milestone around the same time Governor Northam signed the Virginia Clean Economy Act, beginning the state’s transition to 100 percent green energy,” said David Shipley, CFO, sPower. “It has been a long road to get here, but we are excited to be under construction and look forward to continued growth and partnership in Virginia.”
Wells Fargo has provided more than USD 7.5 billion of tax equity financing in support of more than 400 wind and solar projects since establishing the specialised group in 2007. The company also has pledged USD 200 billion in financing through 2030 to businesses and projects that contribute to a more sustainable future. “We are very proud to provide tax equity financing to sPower for this historic project,” said Andrew Kho, managing director and head of originations for Wells Fargo’s Renewable Energy & Environmental Finance group. “We look forward to continuing to support sPower and helping to accelerate the transition to a low carbon economy.”