Lightsource bp Secures $348 Million Financing for Two Utility-Scale Solar Projects in Texas, Bolstering Renewable Energy Portfolio and Energy Security

Lightsource bp has successfully closed on a $348 million financing package to support the construction and operation of two utility-scale solar projects in Texas. The portfolio comprises the 163MW Starr Solar project in Starr County and the 125MW Second Division Solar project in Brazoria County. Construction is underway, creating approximately 400 jobs, with both projects expected to come online in 2024.

Emilie Wangerman, Head of USA and Chief Operating Officer (interim) at Lightsource bp, commented on the significance of the deal, highlighting its importance in expanding their solar and storage portfolio across the United States. This transaction is the first to benefit from the transferability provisions of the Inflation Reduction Act of 2022, allowing for the monetization of the projects’ investment tax credits.

Simms Duncan, Senior Vice President of Structured Finance at Lightsource bp, noted that this deal represents a milestone as the first renewable energy project finance transaction in the US to include both a transferability bridge loan and an equity partner bridge loan, maintaining the company’s position as a market leader.

The financing was facilitated by several world-class finance partners, including Societe Generale, ING, NatWest, Lloyds Banking Group, and Allied Irish Banks.

Once operational, the Starr and Second Division Solar projects will contribute to the diversification of the Texas electric grid, enhancing energy security and reliability, particularly during extreme weather conditions. These projects will join Lightsource bp’s existing operational fleet in Texas, which includes the Impact, Elm Branch, and Briar Creek Solar projects.

During past extreme weather events such as winter storm Uri and summer heatwaves, Lightsource bp’s solar projects played a crucial role in providing electricity to Texas families and helping stabilize electricity prices. With a track record of exceptional performance, including 99% availability during winter storm Heather in January 2024, these projects demonstrate the value of diversified, integrated energy approaches for ensuring energy security and reliability in Texas.