Longroad Energy, a US-based renewable developer, has reached financial close on Sun Streams III, a 285 MWdc photovoltaic (PV) and 215 MWac/860 MWh storage project. The Sun Streams III project, which is situated in Maricopa County, Arizona, is anticipated to start operating in 2024. The project’s debt financing was led by CIBC and Keybank, with participation from ANZ, Commerzbank, PNC, and Silicon Valley Bank. Sun Streams III’s coordinating lead arrangers were KeyBanc Capital Markets and CIBC, with US Bank serving as the project’s tax equity investor.
As per the company’s statement, construction at the site has already started and will create more than 300 employment. The largest solar and storage project in Longroad’s operational portfolio once it is fully operational will be Sun Streams III. The project will have the ability to power 90,000 homes while reducing annual carbon emissions by about 460,000 tonnes. It will be connected to the grid at the Hassayampa switchyard, a significant transmission hub in the western US.
In August 2022, Longroad Energy Holdings announced a $500 million equity investment from MEAG, an asset management subsidiary for Munich Re entities. Infratil, a listed entity managed by Morrison & Co., and New Zealand Superannuation Fund (NZ Super Fund), would join MEAG to support Longroad’s strategic expansion of its renewable energy portfolio.
REGlobal’s Views: With the recent cases of extreme weather events across US, grid disturbances are becoming more frequent. Further, with increasing penetration of renewables, energy storage becomes more critical. Thus, US is witnessing a massive influx of energy storage systems to manage grid stability.