Clearway Energy Group announced that it closed more than $700 million in construction financing and has begun construction on two major energy projects in Fresno and San Bernardino counties in California. Luna Valley is a 200-MW solar project in Fresno County. Daggett Storage is a 113.5-MW standalone battery energy storage project in San Bernardino County and is the final phase of the 482-MW Daggett Solar + 394-MW Storage complex.
“Luna Valley and Daggett 1 represent two major steps forward in California’s path to a reliable, affordable and clean electric grid,” said Brooks Friedeman, VP of capital markets at Clearway. “We are grateful to our financial partners, customers and local communities for their continued support for these investments.”
San Diego Gas & Electric (SDG&E) contracted equal amounts of solar power and energy storage from each of the Luna Valley and Daggett Storage 1 projects under 15-year agreements to achieve a virtually paired hybrid contract. Luna Valley’s remaining solar capacity is contracted under 20-year agreements with Southern California Edison and Power & Water Resources Pooling Authority.
Clearway assembled a bank consortium consisting of Nord/LB, Societe Generale, KeyBanc Capital Markets Inc., DNB and ANZ to provide construction financing for the two projects.
Construction is being led by Blattner. Once complete, Luna Valley Solar will generate enough reliable electricity to power more than 80,000 homes every year. Both projects are scheduled to reach commercial operations in 2025.
News item from Clearway Energy Group
