sPower, a leading renewable energy Independent Power Producer (IPP), announced that the company closed on a $350 million tax equity commitment for Spotsylvania Solar Energy Center in Spotsylvania County, Virginia. At 620 MW DC, this 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 $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. “Finalizing this deal now, for an asset this large, signifies confidence in the future of not only our company but also in the industry.”
“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% 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.”
“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.”
Wells Fargo has provided more than $7.5 billion of tax equity financing in support of more than 400 wind and solar projects since establishing the specialized group in 2007. The company also has pledged $200 billion in financing through 2030 to businesses and projects that contribute to a more sustainable future.
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. In addition to increased property tax revenue for Spotsylvania County, the project will generate millions of dollars in additional revenue for the local community through capital investments and purchasing of local goods and services.
sPower expects to close the debt commitment in the coming weeks.
CohnReznick Capital served as financial advisor and Sheppard Mullin served as sPower’s counsel in the deal.
Headquartered in Salt Lake City, Utah, sPower is a leading independent power producer (IPP) that owns and operates more than 150 renewable generation systems across the U.S. We operate a leading wind, solar and storage portfolio of nearly 2.0 GW, with 15 GW of projects under development. sPower is owned by a joint venture partnership between The AES Corporation (NYSE: AES), Fortune 500 global power company, and the Alberta Investment Management Corporation (AIMCo), one of Canada’s largest and most diversified institutional investment managers. For more information, visit www.spower.com or follow on social media @sPower_US